Panels & Furniture Asia September/October 2024

MARKET REPORT

Vietnam wood and wood products market performance in recovery

domestic enterprises in total exports rose from 26.7% in the same period last year to 27.8%. The proportion of FDI enterprises decreased from 73.3% to 72.2%. With the strong recovery of exports, the demand for imported raw materials for production activities also increased in H1 2024, estimated at $180.16bn, an increase of 18.1% over the same period in 2023. The trade balance of goods in H1 continued to have a surplus, with an estimated trade surplus of $9.31bn. In general, against the background of improving global trade with Vietnam, Vietnam’s commodity exports are expected to continue to grow in the future. In addition, according to cyclical factors, orders are expected to increase sharply in the last few months of this year. In recent months, the import of raw materials for production has increased, which also indicates that the export will continue to grow in the future and will also be a factor to promote the national economic growth. In a recent report, the International Monetary Fund (IMF) predicted that Vietnam’s economic growth would reach nearly 6% in 2024 with the support of strong international demand, stable foreign investment and regulatory policies. OVERVIEW OF WOOD AND WOOD PRODUCTS EXPORTS IN H1 In June 2024, Vietnam’s wood and wood products exports reached $1.25bn, down 1.1% from May 2024, but up 13.6% from June 2023. The export of wood products is expected to reach $840m, up 0.6% from May 2024 and 10.4% from June 2023. In the first six months of 2024, the export of wood and wood products is expected to reach $7.4bn, an increase of 22.2% over the same period in 2023. The export of wood products is expected to reach $5.03bn, an increase of 21.4% over the same period in 2023. According to preliminary statistics, from 18- 25 Jun 2024, Vietnam’s exports of wood and wood products reached $361.8m, an increase of 12.3% over last week. The export of wooden furniture reached $217m, an increase of 14.3% over last week. It is estimated that in H1 2024, the export of wood and wood products will increase by double digits.

Vietnam’s Ministry of Industry and Trade published its trade information newsletter on 1 Jul, detailing specialised trade information on wooden products and handicrafts. Ahead of its 5th edition from 27-30 Nov 2024 in Bình Dương, Vietnam, the Smart Furniture Solutions (SFS) Vietnam wood and woodworking exhibition has summarised the salient trends and performances of wood and wood products in Vietnam from the newsletter:

same period in 2023. The export volume is expected to reach $33.2bn, an increase of 10.9% over June 2023, while imports are expected to reach $32.5bn, an increase of 21.9%. In H1 2024, the total import and export volume is expected to reach $369.64bn, an increase of 16% over the same period of last year. Vietnam’s commodity exports recovered strongly, with an estimated export value of $189.48bn, an increase of 14.2% over the same period last year. Compared with the same period of previous years, this has also set a record high. It is worth noting that the export volume of Vietnam’s domestic economic sector is expected to reach $52.74bn, an increase of 19.2% over the same period of last year. The growth rate is 12.3% higher than that of foreign-invested sectors, reaching $136.73bn. Therefore, the proportion of

GENERAL PERFORMANCE OF VIETNAM’S IMPORTS AND EXPORTS

At present, Vietnam’s economy continues to show positive signs, and its import and export activities remain active. It is estimated that it will maintain double-digit growth in H2 2024. In June 2024, the total import and export volume of Vietnam is expected to reach US$65.7bn, an increase of 11.6% over the

16 PANELS & FURNITURE ASIA | SEPTEMBER / OCTOBER 2024

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