Wood industry sets new record

Export turnover of major forest products reaches US$ 15.96 billion

By the end of August, when the situation of Covid-19 pandemic in South East region - the key areas for wood production, was very intense, the export turnover of wood and wood products decreased sharly. The Vietnam Timber and Forest Products Association (VIFORES) coordinated with local wood associations to propose two scenarios for wood export by the end of 2021.

In the first scenario, the export turnover of wood and wood products would see a growth in the fourth quarter, but it is still behind the turnover of the first and the second quarter. Some estimates put it at 70% of those in the first two quarter. If so, the total export turnover of 2021 would reach US$ 13.55 billion.

The second scenario predicts a decline in export turnover lasting to to the end of the fourth quarter, in which the export turnover of the fourth quarter is at 70% of those in the third quarter. In that case, decline in the export turnover of wood and wood products would would be strong in the last months of the year, and make the total export turnover of 2021 reaching about US$ 12.69 billion.

In addition, wood associations also see the export turnover of wood and wood products for the whole year will be much lower than the plan set out from the beginning, that is US$ 14.5 billion.

However, from October until now, since wood enterprises started to restore production, export turnover has gradually recovered strongly and beyond forecasts. And after several consecutive months declining, even very strong decrease compared to the same period in 2020, by November, the export of wood and wood products has grown over the same period.

According to the Department of Import and Export (Ministry of Industry and Trade), the export value of wood and wood products in November 2021 reached US$ 1.27 billion, up 2.5% compared to November 2020. The above export value marked the return of the export of wood and wood products to the value of more than US$ 1 billion per month after 3 consecutive months of falling below this level.

It is an important contribution to the export value of wood and wood products in 11 months, with the value of US$ 13.4 billion, up 21.1% over the same period in 2020. In which, the export value of wood products reached US$ 9.99 billion, up 17.6% over the same period in 2020.

According to the General Department of Customs, in the first half of December, exports of wood and wood products continued to reach an impressive figure of approximately US$ 680 million. Thereby, the export turnover of wood and wood products from the beginning of the year to mid-December reaches US$ 14 billion.

It is estimated that the the export turnover of wood and wood products in December will reach over US$ 1 billion, bringing the export value of the whole year to surpass US$ 14.5 billion as planned. If so, the export value will be far beyond the two scenarios proposed by wood associations at the end of August.

According to estimates of the Ministry of Agriculture and Rural Development, with the results achieved in December, the export of wood and wood products this year reaches about US$ 14.81 billion, setting a new record in the history of Vietnam's wood industry.

The impacts that help the wood industry having a strong recovery in the last months of 2021 is thanks to the timely policies and support of the government, the close and timely direction of the relevant ministries and sectors, especially the Ministry of Agriculture and Rural Development, along with the efforts of businesses in the wood industry to maintain production and export, and high demand from the international market.

Wood enterprises are speeding up production to keep up with signed export orders for the last month of 2021 and the first half of 2022.

Affirming position in the US market

Vietnam ranks 2nd in exporting wooden furniture after China, but in the world's largest market, the US, the Vietnam’s wood industry has spectacularly taken China's wood industry from 2020 and continues to widen this gap in 2021.

According to the US International Trade Commission (USITC), 10 months of 2021, US imports of wooden furniture reached US$ 20.4 billion, up 37.8% over the same period in 2020.

In the first 10 months of 2021, Vietnam continues to be the largest wooden furniture supplier to the US, with a turnover of US$ 7.9 billion, up 44.5% over the same period in 2020. Vietnam’s wooden furniture continues to increase its market share in the US market, accounts for 38.7% of total US imports in the first 10 months of this year (accounted for 36.9 percent in the same period last year). Meanwhile, the second largest supplier, China, continued to decrease its market share, from 22.8% in the first 10 months of last year, to 21.1% in the first 10 months of this year.

According to the General Department of Customs, in the past 11 months, exports of wood and wood products to the US reached US$ 7.937 billion, up 24.6% over the same period last year. Thus, up to this time, the export turnover of wood and wood products to the US has far exceeded the export record of US$ 7.166 billion of last year. It is predicted that the export of wood and wood products to the US this year will surely set a new record.

Besides the US market, this year's export of wood and wood products continues to grow impressively in many other markets. Notably, the Chinese market, with a growth rate of 26.6% in the first 11 months, surpasses Japan to become the second largest market of Vietnam's wood industry with a turnover of US$ 1.367 billion.

However, exports of wood and wood products to Japan still grew by 11.2% and reached US$ 1.289 billion in 11 months. Among the 10 largest markets of Vietnam's wood industry, exports to Malaysia had the strongest growth in 11 months (up 69.3%) and reached nearly US$ 112 million.

In the remaining markets in the Top 10, except for the Australian market, which was slightly reduced, other markets still grow steadily in the context of the wood industry facing great difficulties due to the Covid-19 pandemic and rising freight rates worldwide.

Revenue from forest environmental services is over VND 3,100 billion

According to the the Ministry of Agriculture and Rural Development, in 2021, it will continue to implement the Program on Forest Protection and Development, with the focus being on the Project "Plant 1 billion trees in the 2021 - 2025 period"; timber production from plantations reached 32 million m3.

Measures to protect forests and prevent forest fires have been strengthened. The policy of payment for forest environmental services is effective and plays an important role in forest protection and development. Revenue from forest environment services is over VND 3,100 billion, reaching 107% of the plan; sustainable management forest certification (FSC) reaches 45 thousand ha (accumulated up to now 314 thousand ha).