MARKET REPORT
Wood and wood productsexported in May and the first 5 months of 2024
Production and export have continued to grow for many years, but the added value of products is not high by relying on cheap labour and raw materials. Most enterprises are small in scale and unable to establish brands, with poor resilience to unexpected and persistent fluctuations in the market. Products are rarely distributed directly to customers, but must be distributed through foreign distribution channels. To make the wood industry sustainable, Vietnam’s wood and furniture industry needs to focus on investing in design, innovation, and increasing the added value of products, in addition to meeting the regulations and standards of origin and environment. Moreover, wooden furniture export enterprises need to diversify the market, focusing on promoting trade in potential markets such as the Middle East, Africa, Eastern Europe and Northern Europe, which have not yet been developed. In terms of products, most wood and wood products enjoyed growth in the first five months of 2024, especially for wooden furniture products. The highest export turnover is wooden frame chairs, reaching $1.3bn, with a year-on-year increase of 27.1%; followed by woodchips reaching $1.1bn, an increase of 35.1%; living room and dining room furniture reaching $1bn, an increase of 38.2%; wood, planks and flooring reaching $814.7m, an increase of 24.7%; bedroom furniture reached $772.7m, an increase of 32.3%. The US, China and the EU are all growing strongly, indicating that the market demand is recovering. The US is still Vietnam’s largest export market for wood and wood products, and its export turnover in the first five months of 2024 reached $3.3bn, an increase of 26% over the same period in 2023. The US is the largest import market in the world. It is worth noting that since 2023, the relationship between the two countries has been upgraded to a comprehensive strategic partnership, which has promoted two-way trade.
Proportion (%)
Compared to the same
5 months 2024 (thousand USD)
Compared to May 2023 (%)
May 2024 (thousand USD)
Product
5 months 2024
5 months 2023
period in 2023 (%)
Total
1,263,772
19.4 6,174,054
24.2
100.0
100.0
Wood frame chips
259,114
12.7
1,315,950
23.9
21.3
21.3
Wood chips
264,355
96.9
1,115,759
35.1
18.1
16.6
Living room and dining room furniture
204,080
93.3
1,034,087
38.2
16.7
15.0
Exports of rattan bamboo, sedge, and mats increased by nearly 13% in the first half of 2024 20
193,347
27.7
814,700
24.7
13.2
13.1
Bedroom Furnitrue
158.392
51.8
772,726
32.3
12.5
11.7
Kitchen Furniture
117.941
17.2
528,377
25.3
8.6
8.5
Percentage (%)
Compared to the same
5 months 2024 (thousand USD)
Compared to May 2023 (%)
May 2024 (thousand USD)
Items
5 months 2024
5 months 2023
period in 2023 (%)
Laminated Wood
48.382
11.4
281.714
10.1
4.6
5.1
Office Furniture
23.410
5.8
114.371
15.3
1.9
2.0
Wooden Doors
4.568
16.4
22.420
43.8
0.4
0.3
Handicraft Furniture
2.717
37.2
13.627
41.6
0.2
0.2
Mirror Frames
144
-24.1
891
-25.0
0.0
0.0
Source: Preliminary statistics from data of the General Department of Customs Regarding export markets: Wood and wood products exported to major markets such as
Export of wood and wood products to markets in May and the first 5 months of 2024
Percentage (%)
Compared to the same
5 months 2024 (thousand USD)
Compared to May 2023 (%)
May 2024 (thousand USD)
Market
5 months 2024
5 months 2023
period in 2023 (%)
Total
1,263,772
19.4 6,174,054
24.2
100.0
100.0
USA
676.712
7.6
3.335225
26.0
54.0
53.2
China
216.365
107.6
887.849
51.2
14.4
11.8
Japan
128.618
5.1
674.147
-0.5
10.9
13.6
South Korea
61.519
11.7
312.711
-3.8
5.1
6.5
European Union
34.808
18.7
240.325
32.8
3.9
3.6
France
6.549
-8.4
48.062
14.2
0.8
0.8
Germany
5.336
45.5
39,365
43.2
0.6
0.6
In addition, the exchange rate difference between VND and the USD has decreased, but it is still high. Therefore, due to the low labour cost, exporting wood and wood products from Vietnam to the US has a price advantage. Although there are advantages to exporting wood and wood products to the US, the risk of trade fraud and counterfeit product sources is increasing. Complex trade competition is also a major challenge for Vietnamese wooden furniture export enterprises. Therefore, Vietnamese enterprises must pay attention to improving product quality and labour productivity, apply digital economy to directly contact with imported enterprises, reduce procedures and costs, and thus improve product competitiveness.
Vietnam exported $887.8m to the China market, an increase of 51.2% over the same period in 2023. For the EU, it reached $240.3m, an increase of 32.8%. Canada reached $94m, an increase of 24.1%, while the UK reached $89.7m, an increase of 18%, and Indonesia reached $77.8m, an increase of 102.3%. OVERVIEW OF WOOD AND WOOD PRODUCTS IMPORTS IN H1 According to preliminary statistics, Vietnam’s import of wood and wood products in June 2024 is estimated to reach $250m, an increase of 0.9% compared to May 2024 and an increase of 31.3% compared to June 2023. In H1 2024, the import of this item is estimated to reach $1.27bn, an increase of 21.7% compared to the same period in 2023.
18 PANELS & FURNITURE ASIA | SEPTEMBER / OCTOBER 2024
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