Wood exports at the beginning of the year grew by double digits

Vietnam's export of timber and wood products was experiencing impressive growth in the first months of this year. By the end of April, the export value of timber and wood products reached USD 4.9 billion, an increase of 25% over the same period in 2023. The export value of wood products reached 3.35 billion USD, an increase of 27.7%.

In the first four months of 2024, Vietnam's export of timber and wood to major markets recorded favorable growth rates. Leading the way is exports to the US market, reaching 2.7 billion USD, up 31.9% over the same period in 2023, followed by exports to the Chinese market, reaching USD 668 million, an increase of 38.3%.

Canada reached USD 77.5 million, up 29.2%. The UK reached USD 73 million, an increase of 21.3%. Australia reached USD 46 million, up 28.7%.

The growing demand for wooden furniture in many vital markets is the main reason for the growth of Vietnam's wood and wood product exports. According to the Agency of Foreign Trade (MOIT), there are moves to cut interest rates in the US market, thereby stimulating consumer demand again and expanding the import-export needs of businesses.

In addition, the EU region has also overcome the recession period. The inventory of wooden products has been depleted, so traders have begun to increase imports again.

Imports of wooden furniture from many other major markets are also recovering. According to Statistics Canada, in the first two months of this year, the value of Canada's wooden furniture imports increased by 11.9%. Japanese Customs showed that the import value of wooden furniture in this country increased by 17% during the above period. According to the International Trade Center, the value of Australia's wooden furniture imports will increase by 26.7% in the first two months of 2024.

Thanks to solid export growth, Vietnamese wooden furniture continues to hold a significant market share in many of the world's leading wooden furniture-consuming markets. In the US market, wooden furniture imported from Vietnam accounted for 40.8% of the total wooden furniture import value in the first two months of this year.

During this period, Vietnamese wooden furniture accounted for 14.8% of the total wooden furniture import value of Canada and 22% of Japan. In the Australian market, Vietnamese wooden furniture accounts for 10% of the total import value.

Because the demand for imported wood and wood products shows signs of recovery in many markets, export orders of many businesses have recovered significantly, equal to 80-90% compared to the previous year with the year 2022.

In provinces with large wood industries, recovering timber and wood product exports is vital to local exports. In the first quarter of Binh Duong, the most prominent wood exporting location in Vietnam, this province's export of wood and wood products reached more than USD 1.35 billion, an increase of 30.7% over the same period in 2023. 

The US market increased by 32.7% over the same period, accounting for 83.1% of the total export turnover of wood and wood products. The EU increased by 23.7%. Japan increased by 6.5%. Canada increased by 34.2%. Korea increased by 10.7%. The export turnover of timber and wood products accounts for 16.9% of the export turnover of goods of Binh Duong province.

Mr. Nguyen Liem, Chairman of the Binh Duong Woodworking Association, said that the growth in the export of timber and wood products at the beginning of 2024 had not reflected the demand for wooden furniture in the market. First of all, the first months of the year are when businesses focus on delivering outdoor wooden products, and this product group contributes largely to turnover and export growth in the first quarter.

In addition, due to a sharp decrease in imports in 2023, inventories of wooden furniture products in markets have decreased significantly. Importers tend to boost purchases in the first months of 2024. Therefore, the growth in wooden furniture imports in many markets in the first months of this year has yet to reflect the increase in demand consumption worldwide accurately.

Therefore, in the coming time, Vietnamese wood industry enterprises will continue to closely monitor market developments, fluctuations in supply and demand in large markets and traditional markets, and at the same time, push to strengthen promotional and marketing activities and seek more customers in other markets.