MARKET REPORT
force, abundant wood raw materials, legally imported wood, and the ability to produce products that can be traced back to its origin. Moreover, Vietnam’s product design patterns are becoming more and more diversified. The export of wood and wood products still expects to face challenges in H2. Continued geopolitical tensions is expected to continue pushing up freight rates. In addition, wood and wood products exported to major markets such as the US and the EU continue to face pressure from trade defence investigations, environmental-related technical obstacles, sustainable development and green transformation. Specifically, from the end of 2024, Europe will implement laws and regulations to prevent forest deforestation. The US market will also implement anti- dumping regulations and investigate kitchen cabinets. In addition to objective factors, the internal ability of enterprises is limited, and most enterprises mainly process according to the orders and designs of foreign distributors.
Export situation of wood and wood products of Vietnam through the months of 2022 - 2024 (Unit: million USD)
1,900
1,600
1,300 1,000
700
400
100
T01
T02
T03
T04
T05
T06
T07
T08
T09
T10
T11
T12
2022
2022
2022
Source: General Department of customs – estimated data for June 2024
Vietnam’s export trade continues to show a positive trend, and the import of consumer goods in many countries has increased again, which is a good sign for the export of commodities such as wood and wood products. So far, many enterprises have received orders before August 2024, and some enterprises have even received orders before the end of 2024. With the arrival of many orders, and the positive growth data in H1 2024, the import of raw materials
increased, indicating that the export prospects of wood and wood products will grow in H2. Especially in the last few months of 2024, the demand for wooden furniture will usually increase as the real estate market enters the completion stage, and it is necessary to renovate houses and replace furniture to welcome the new year.
At the same time, Vietnam’s wood processing and export industry has a skilled labour
SEPTEMBER / OCTOBER 2024 | PANELS & FURNITURE ASIA 17
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