Vietnam’s wood, wood product exports slow down in two consecutive months

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ITTO/Fordaq
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From April 2022 exports of wood and wood products showed signs of slowing down. Between June and July 2022 the growth was negative compared to the same period last year when it decreased by 11% and 5.5% respectively after a long period of growth above doubledigit average per year. This information was provided during a conference at the Vietnam International Furniture & Home Accessories Fair (VIFA-EXPO).

Mr. Nguyen Chanh Phuong, Vice Chairman of Ho Chi Minh City Handicraft and Wood Industry Association (HAWA) pointed out the main reason that the key export markets such as the US and Europe are facing many difficulties due to the impact of the conflict between Russia and Ukraine. Plus, high inflation in many countries has made consumers tighten their spending, leading to a decrease in demand for unnecessary products including wood products and furniture.

Mr. Phuong, said another reason is that the world's importers have not calculated correctly, so, over the past time, commodity congestion with a large amount is at warehouses and ports abroad and in Vietnam. It takes three or four months even 12 months to tackle the inventory of commodities.The Ministry of Agriculture and Rural Development announced that China - one of the three largest importers of wooden furniture products in Vietnam - still thoroughly applied the Zero Covid policy.

These factors interacting with each other reasons have led to supply chain disruptions, increased production costs due to increased raw materials, and transportation costs. According to HAWA, the market also has positive signals.

Many domestic construction projects are starting well. Furthermore, Japan, Korea, and Australia have still placed stable orders in the luxury segment. In addition, from next September, there will be new orders for the year-end shopping season around the world.

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