Wood export likely to hit $14.5B in 2023
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Vietnam’s wood export is likely to hit about $14.5 billion this year, lower than the yearly target of $17 billion, said Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Nguyen Chanh Phuong.
The figure could reach roughly $6 billion between now and the year’s end.
Since early this year, wood and wooden furniture export has been dull, with a shortage of orders common in most businesses. In the past eight months, the export turnover neared $8.3 billion, down around 26% annually, Phuong told a local press conference on September 13.
Since May this year, the Vietnamese firms have been importing a significant amount of raw wood materials which rise by 5-10% per month. This is a sign that they are actively preparing for end-of-year orders, he added.
Citing data from the International Trade Centre (ITC), Phuong revealed that the Vietnamese wood enterprises are also importing a substantial amount of machinery and equipment, totaling approximately $240 million, mostly from China, Europe, the Republic of Korea and Japan, among others.
Questions & Answers
Q.What is the expected total value of wood exports from Vietnam for the current year?
What is the expected total value of wood exports from Vietnam for the current year?
Vietnam's wood exports are projected to reach approximately $14.5 billion this year. This figure is lower than the initial target set for the year, as indicated by the Handicraft and Wood Industry Association of Ho Chi Minh City.
Q.Why has the forecast for Vietnam's wood export value been reduced from the original target?
Why has the forecast for Vietnam's wood export value been reduced from the original target?
The forecast was lowered because wood and wooden furniture export has been subdued since the start of the year. Many businesses have experienced a shortage of orders, leading to a decline in export turnover.
Q.What evidence suggests that Vietnamese wood firms are preparing for increased orders later in the year?
What evidence suggests that Vietnamese wood firms are preparing for increased orders later in the year?
Vietnamese firms have been importing a significant amount of raw wood materials, with these imports rising by 5-10% monthly since May. They are also importing substantial machinery and equipment.
Q.What was the total value of wood and wooden furniture exports in the first eight months of this year?
What was the total value of wood and wooden furniture exports in the first eight months of this year?
The export turnover for wood and wooden furniture in the first eight months of the year was nearly $8.3 billion. This represents a decrease of around 26% compared to the same period in the previous year.