Wood and wooden furniture export hit USD 6.42 billion

Great prospect

According to GSO, export turnover of wood and wood furniture reached USD 6.42 billion, up 42% year on year. While the turnover of wood furniture export, in particular, attained USD 4,96 billion, a 57% increase over the same period last year. This was a record-high figure, passing the impacts of the COVID-19 pandemic, while many industries are still facing difficulties.

The increase in orders together with the growth of export turnover was considered the immediate joy of Vietnamese wood processing and exporting enterprises. However, due to the Covid-19 pandemic, many businesses can not afford such increasing orders due to the interruption of raw material supply and the strict management of product traceability according to customer requirements.

To control the source of imported materials for processing, Vietnam has built a legal system stipulating the legal timber guarantee system. Accordingly, the Vietnam Wood and Forest Products Association has asked ministries and units to direct related agencies to require importing businesses to provide and additionally declare documents vouchers such as permission to exploit the forest, the certificate of registration as a wood processing establishment, export license, documents explaining the origin of the wood among others.

Growing demands for wood furniture

Vietnam has become one of the leading countries in the world in terms of wood furniture export, presenting across 140 countries and territories. Thereby, the Vietnam timber industry has drawn huge attention from not only customers but also global partners. As a result, Vietnam has been a reputable wood provider in the eye of foreign importers despite the Covid-19 pandemic.

An owner of a furniture store chain said that there was a higher number of traditional customers in the US and European markets placing orders since 2019 when Covid-19 outbreaks yet to occur. This year witnessed several new customers, who shifted from China to Vietnam, leading to an increase in orders in 2021 by about 30% over the same period in 2019.  Therefore, many enterprises, processing and exporting wooden furniture and handicrafts under the Ho Chi Minh Fine Arts and Woodworking Association (HAWA) have also received orders from foreign importers until the end of 2021. This is a pretty good growth prospect of the wood processing and exporting industry compared to the pre-Covid-19 pandemic.

According to importers, the pandemic has forced countries to implement social distancing solutions and workers have to work from home. As a result, the demand for new furniture, beds, cabinets to create a more beautiful space has escalated. World consumers have more time and desire to shop, search for products, furniture online. These factors make the demand for furniture increase in many markets. Vietnamese furniture company's compliance with traceability, transparent origin of raw materials are also reasons to lure customers’ fondness.