Major markets see a significant increase in demand for Vietnamese wood and wooden products

According to data from the General Department of Customs, as of August, Vietnam's wood and wood product export value reached 9.5 billion USD, marking a 24% increase compared to the same period last year. Of this, the export value of furniture accounts for 68% of the total export value for the entire sector.

Major export markets have reported positive growth compared to the same period last year. The United States remains the largest importer of Vietnamese wood and wooden products, with an export value of nearly 4.9 billion USD (a 26% increase from the same period last year). China reached 1.2 billion USD (a nearly 40% increase); Japan reached 961 million USD (a slight increase of 1.4%); Canada reached 133 million USD (a 25% increase); the United Kingdom reached 124 million USD (a 17.8% increase); Malaysia reached 90.7 million USD (a 12.8% increase); Australia reached 86 million USD (a 14.6% increase); India reached 84.4 million USD (a significant increase of 65.8%) and France reached 63.7 million USD (a 12.9% increase).

Among the 40 major export markets, Laos experienced the highest growth rate, with export value increasing by 150% compared to the same period last year. In contrast, Turkey recorded the largest decline, with a 75.8% decrease compared to the previous year. South Korea saw a decrease of 2.1% compared to the same period last year, with exports totaling 452 million USD.

According to Mr. Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry - Ho Chi Minh City branch (VCCI-HCM), the wood and furniture export sector has returned to a growth trajectory in the first eight months of the year. However, furniture and wooden product manufacturers continue to face numerous challenges, including market competition, prolonged high shipping costs leading to a significant increase in the price of imported raw materials and rising production costs that affect product pricing and competitiveness. Additionally, stricter requirements regarding quality, safety, environmental friendliness, clear product origins and protective policies from importing countries also pose barriers.

Mr. Tran Ngoc Liem believes that improving product quality, obtaining necessary international certifications and exploring non-traditional markets to diversify the export destinations for wood and furniture products are essential actions that businesses must undertake to ensure sustainable growth.

To seek new orders and customers, the 2nd Vietnam ASEAN Export Furniture and Handicrafts Fair (VIFA ASEAN 2024) is being held from August 27 - 30 at the SECC International Exhibition Center (District 7, Ho Chi Minh City). This event is considered a showcase of Southeast Asian interior design excellence, featuring 600 booths for interior and exterior furnishings, handicrafts, home decor, and more. The fair has attracted participation from 200 companies from Vietnam and 13 other countries and territories, including Thailand, the Philippines, Indonesia, India and Taiwan.

Mr. Pham Xuan Haa, CEO of An Hoa Phát Furniture Co., Ltd. (Binh Duong), said that the export and import situation for the company's wooden products to traditional markets such as the U.S. and Europe has been growing slowly, achieving only 60% of the planned target for 2024.

The company currently has orders scheduled through December and some extending into February 2025, with a noticeable improvement in order flow.

"By participating in VIFA ASEAN 2024, we aim to understand the global buyers' needs regarding the Vietnamese market and identify upcoming trends to make timely preparations. We have also been able to connect with many international buyers", Mr. Hoa said.

As a company specializing in the export of wooden, bamboo, rattan, and other material-based interior and exterior products, AD Furniture and Garden Joint Stock Company has a presence in markets such as the U.S., the U.K., Canada, Europe and Africa.

"We will continue to participate in trade fairs like VIFA ASEAN 2024, as well as in e-commerce platforms, to seek new potential orders. In the near future, we plan to further develop markets in South Africa and the Americas", said Mrs. Le Thi Thanh Truc, Director of AD Furniture and Garden Joint Stock Company.

Mr. Tran Hoai Huu, Director of Gia Nhien Co., Ltd., stated that participating in trade fairs and adopting technology helps the company expand its network, meet international importers, explore and access modern consumer trends, which in turn supports the business in securing stable orders.

With the efforts of businesses, along with the support of ministries, associations and agencies in trade promotion and sustainable production, the goal of achieving 14.2 billion USD in wood and wood product exports for the industry in 2024, as planned by the Ministry of Agriculture and Rural Development, is highly achievable.

According to Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), VIFA ASEAN is an annual event that helps businesses showcase quality products and reputable brands, facilitates trade connections and contributes to increasing purchasing power in the city. It also promotes and establishes the position of Vietnamese goods and export wooden furniture, thereby helping Vietnamese products reach further markets.