Panels & Furniture Asia September/October 2024

MARKET REPORT

Export situation of wood and wood products of Vietnam through the months of 2022 - 2024 (Unit: million USD)

In H1 2024, the import of raw wood is estimated to reach 2.5 million cubic metres, valued at $838.4m, an increase of 18.4% in volume and 11.2% in value compared to the same period in 2023. In the first five months of 2024, the import of raw wood reached 2.02 million cubic metres, worth $670m, up 17.1% in volume and 8.4% in value compared to the same period in 2023. In the first five months of 2024, the import volume of raw wood from major markets such as China, EU, US, Thailand, Chile, Laos, Brazil, New Zealand, and others, increased compared to the same period in 2023. Specifically, the import of raw wood from the largest market, China, accounted for 17.3% of the total import volume in the first five months of 2024, reaching 348,5000m³, worth $137.1m, up 71.6% in volume and 39.9% in value compared to the same period in 2023. The import of raw wood from the EU market increased by 4% in volume and 9.3% in value compared to the same period in 2023, reaching 275,300m³, worth $88.6m, accounting for 13.7% of the total import volume. The import of raw wood from the US market increased by 18.1% in volume and 18.2% in value compared to the same period in 2023, reaching 255,4000m³, worth $110.1m, accounting for 12.7% of the total import volume. Meanwhile, the import volume from some other markets. For instance, Cameroon decreased by 35.6%; Malaysia decreased by 12.9%; Congo decreased by 32.5%; Suriname decreased by 28%; and Indonesia decreased by 6.6%. In the first five months of 2024, the import volume of major wood species such as pine, eucalyptus, pachyloba, oak, cajuput, walnut, xoan, and beech increased compared to the same period in 2023. Meanwhile, the import volume of some species decreased, such as ash, rubber, teak, among others.

250

200

150

50

0

T01

T02

T03

T04

T05

T06 T07 2023 2024

T08

T09

T10

T11

T12

Source: Calculated from data of General Department of Customs - estimated in June 2024

Export of wood and wood products to markets in May and the first 5 months of 2024

Compared to the same period in 2023 (%)

First 5 months of 2024

Category

Value (USD thousand)

Unit price (USD/m 3 )

Value

Volume

Unit price

Volume (m 3 )

Sawn timber

815,980

315.046

386.1

9.6

4.5

-4.7

Round timber

608,713

180.904 -7.2 Source: Calculated from data of General Department of Customs 297.2 3.3 -4.2

around the world, penetrating deeper into important markets such as the US, Europe, South Korea, Japan. More specifically, it has become more present in emerging markets such as the Middle East and India. Signals from import markets have been improving since the beginning of Q2, but Vietnamese wood businesses are also facing challenges such as short orders, high raw material prices, customer partners requesting price reductions, and increased shipping costs. In the next half of 2024, it is expected that the export of wood and wood products will continue to receive positive opportunities from the US and EU markets, such as cooling inflation, increasing job market, active construction and real estate trading, and the problem of high inventory is gradually being resolved. To prepare raw materials for export processing, in addition to the domestic raw wood supply, enterprises also increase the import of types of wood that are not sufficient to meet the demand of processing factories. It is forecasted that the import of raw wood will continue to increase in the last six months of 2024 due to increasing demand. P

Specifically, in the first five months of 2024, imports of total raw wood item reached 2.02 million cubic metres, worth $670m, an increase of 17.1% in volume and 8.4% in value compared to the same period in 2023. The import of eucalyptus increased by 27.9% in volume and 12.7% in value compared to the same period in 2023, reaching 142,000m 3 , worth $53.5m, accounting for 7.1% of the total volume of imported raw wood. The import of oak wood increased by 27.7% in volume and 30% in value compared to the same period in 2023, reaching 135,400m 3 , worth $77.7m. TREND FORECAST FOR H2 2024 The Vietnamese wood industry witnessed a surge of export growth momentum in H1 2024 with a growth rate of 22% compared to the same period in 2023, estimated at $7.4bn. This is a positive sign compared to the sharp decline in this market last year. This recovery is attributed to the rebound in market demand, especially in major markets such as the US and Europe. Many domestic enterprises have quickly adapted to this trend by diversifying products, expanding markets, and optimising costs.

Currently, the wood industry in Vietnam has expanded its export market to 170 countries

SEPTEMBER / OCTOBER 2024 | PANELS & FURNITURE ASIA 19

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