Brian Jeffrey
A Vietnamese wood processing company in Binh Duong notes a significant uptick in orders, with contracts secured well into 2024. Orders from the US, EU, and China have surged by 20-30%, indicating a promising market trend compared to the previous year.
Official data from the General Department of Customs for August 2024 reveals wood export revenue exceeding $1.45 billion. The total revenue for January to August 2024 stands at $10.97 billion, marking a substantial 19.7% increase from the previous year.
Wood and wood products contributed $10.24 billion, reflecting a 20.6% growth, while other products like rattan, bamboo, rush, and carpets added $552 million, a 13.6% increase.
The US leads as the top market, importing nearly $4.9 billion worth of Vietnamese wood products, a 26% increase year-on-year, comprising 55% of the industry’s total export value. China follows with $1.2 billion, up by 39.1%, and Japan with $961.3 million, a modest increase of 1.5%.
Nevertheless, the wood industry encounters obstacles such as strict international regulations like the EU’s anti-deforestation laws, the US Lacey Act, and the European Commission’s proposed carbon border adjustment mechanism.
Moreover, escalating sea freight costs and raw material prices pose challenges to the sector. The future of Vietnam’s wood exports for the remainder of 2024 remains challenging.
Addressing these hurdles, the Vietnamese government has endorsed a forestry plan for 2021-2030 with a vision extending to 2050, aiming for an annual forestry production growth of 5-5.5%.
The plan outlines ambitious export targets of $20 billion by 2025 and $25 billion by 2030, along with domestic market consumption goals of $5 billion and $6 billion, respectively.
To meet these objectives, Vietnam emphasizes modernizing equipment and technology to manufacture premium, value-added goods, emphasizing the establishment of a high-tech forestry center and an international hub for wood products trading.
Tam An
