According to the Import-Export Department, the export value of timber and wood products in May is estimated at USD 1.2 billion, an increase of 10% compared to April. Export value of wood products is estimated at USD 801 million, an increase of 3% compared to April but a decrease of 16% compared to May 2022. However, the global economy continues to be unstable and unpredictable, and the market has not had positive signals, therefore wooden furniture exporters continue to face many difficulties.

Accumulated over the first five months of this year, the export turnover of timber and wood products is estimated at USD 5.1 billion, a decrease of 27% over the same period in 2022. In which, the export value of wood products is estimated at USD 3.4 billion, a decrease of 34% over the same period in 2022.

According to the Import and Export Department, in the structure of exported timber and wood products in the first four months of 2023, wooden furniture is the main export item, accounting for 60% of the total export value. However, the export value of this item decreased sharply due to rising inflation in export markets, leading to a slowdown in demand.

Behind furniture, wood chips and pellets also recorded a decrease in export value due to the slowdown in exports to the main markets of Japan and Korea Republic.

Inventories in Japan and Korea Republic are still high, therefore import demand in these two markets tends to decrease.

In the first four months of the year, the export turnover of timber and wood products to the US market reached USD 2 billion, a decrease of 39.5% over the same period in 2022. According to the Import-Export Department, the US import demand may continue to decline due to the effects of inflation, economic recession, and low consumer confidence.

According to Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association (Viforest), businesses are looking for potential markets such as North America, the UK, Europe and Northeast Asia.

Kylie Nguyen