Wood industry likely to fulfill target of $12.5 billion export turnover?

In the first nine months of the year, while export market was seriously affected by the Covid-19 pandemic, Việt Nam wood industry still recorded a US$9 billion turnover from exports of wood and wood products, a remarkable increase by 12 per cent over the same period last year.

Speaking at a conference jointly held in the southern province of Bình Định over the weekend by the Ministry of Agriculture and Rural Development (MARD) and the Association of Việt Nam Timber and Forest Product (Vifores), MARD Deputy Minister Hà Công Tuấn highly appreciated the efforts made by the sector’s business enterprises for overcoming challenges to gross such miracle achievements.

Deputy Minister Tuấn said that after two waves of the COVID-19 pandemic, Vietnamese wood exports have shown rosy signs thanks to the efforts and creativity of enterprises.

“Three more months from now to the end of the year, not long, but with the current growth momentum, we believe that the wood processing industry in Việt Nam can achieve an export turnover of $4 billion more,” according to Tuấn.

Thus, in 2020, the country's wood export turnover will gradually reach the target of about $12.5 billion-the very high growth rate and not less than any figure of the past years, said Deputy Minister Tuấn.

"Difficulties that occurred in the last period have actually stimulated the dynamic operation of the sector’s business companies. In order to get contracts, they have been trying for months patiently to maintain negotiations in potential markets,” said Tuấn.

For the first time, Việt Nam wood industry grossed a remarkable US1 billion turover from exports in just one month (August), according to the deputy minister.

A report from the Vifores revealed that in the first eight months of 2020, Việt Nam’s revenue from wood and wood products exports to the five major markets of the United States, Japan, China, South Korea and the EU had reached $7.01 billion, accounting for 89.4 per cent of country’s total export turnover.

Moreover, in the first 15 days of September alone, total export value of wood and forest products to the same five markets had reached nearly $566 million thus it was estimated that the figure would reach $1.131 billion for the whole month, up 23.9 per cent compared with the same period last year.

As a result, in first 9 months of this year, the sector is expected to achieve a total turnover of $8.97 billion, up 12 per cent over the same period in 2019 of which export value from wood and wood products reaches $8.38 billion, or an increase by 11.2 per cent.

Đỗ Xuân Lập, Chairman of the Viforest said that such outstanding results were achieved due to not only the timely support packages of the Government, ministries and agencies but also the continuous efforts of business enterprises.

“During the last difficult time, businesses operating in the wood industry do not wait for the customers but they always try to find the market by themselves there for the supply chain is not broken but even more developed than in previous years,” said Lập.

The official added that in order to quickly turn advantages into strength for the Vietnamese wood industry, right in November, the association will set up a branch promoting for the trading of furniture products including those for kitchen, bathroom and house decoration. This branch will create a large chain network linking businesses together and step by step to help them integrate into the global supply chain system.

“Another opportunity for the industry in the coming time is the huge EU market,” Lập said.

According to the Department of Agro-Processing and Market Development, EU is Việt Nam's 4th largest market for wood and wood products after Japan, the United States and China.