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Export value of wood and wood products increased sharply in August

Estimates of the General Department of Customs, the export value of wood and wood products of the country in August 2022 reached 1.35 billion USD, an increase of 65% compared to August 2021. In which, the export of wood products is estimated at 851 million USD, up 60.5% compared to August 2021. Generally in the first 8 months of 2022, the export value of wood and wood products is estimated at 11.07 billion USD, an increase of 6.2% over the same period in 2021. In which, the export of wood products is estimated at 7.77 billion USD, down 3% over the same period in 2021.

The export value of wood and wood products increased sharply in August 2022 because in August 2021 the export value of wood and wood products was at a very low level, affected by the outbreak of epidemics, causing activities Timber production and export activities were interrupted due to the closure of factories due to social distancing.

At the present time, the impact of the conflict between Russia and Ukraine, causing high energy prices, affects transportation costs and input material prices increase, which leads to an increase in the cost of export products as well. is the factor that makes the export value in August 2022 increase sharply compared to the same period in 2021.

In the structure of exported wood and wood products, wooden furniture is always the main export item, accounting for a high proportion. However, the export value in the first 7 months of 2022 decreased by 7.6% compared with the same period in 2021, reaching 6.3 billion USD. Most items in the structure of wooden furniture items have a reduced value, except for kitchen furniture. Wooden furniture is a group of goods with high added value and should be promoted for export. However, in the context of high inflation in key export markets such as the US, EU..., along with increased transportation costs and input materials for production, the industry's export growth is likely to increase. This product is less positive, although the end of the year is a period of strong export growth to meet the needs of the completed housing market, home decoration to welcome the new year.

Meanwhile, woodchips with export value in the first 7 months of 2022 reached 1.45 billion USD, up 34.9% over the same period in 2021. This is an item that needs to be restricted from exporting for the purpose of creating added value for wood products is the sustainable development strategy of the wood industry.

Followed by other exported wood and wood products such as: Wood, boards and flooring reached $1.2 billion, up 16.2% over the same period in 2021; wooden doors reached 34 million USD, up 53.4%; fine art furniture reached 18.5 million USD, up 18.9%…

As a rule, the second half of the year exports of wood and wood products are usually higher than at the beginning of the year due to the high demand for interior finishing, repair and redecoration at the end of the year in many main export markets. In the first month of the third quarter of 2022, the export value of wood and wood products grew more positively. It is estimated that the export value of wood and wood products in July 2022 reached 1.35 billion USD, an increase of 0.2% compared to July 2021. In which, the export value of wood products in July 2022 is estimated at 1.05 billion USD, up 0.5% compared to July 2021. Generally, in the first 7 months of 2022, the export of wood and wood products was estimated at 9.7 billion USD, an increase of 1.4% over the same period in 2021. In which, the export of wood products reached 7.1 billion USD, down. 4.9% over the same period in 2021.

However, facing a sharp increase in inflation in the main export markets of Vietnam's wood and wood products, the US and EU countries, people in these countries tend to tighten their grip. than spending, especially for non-essential goods, leading to a decrease in the demand for imported wood and wood products.

Along with that, the military conflict between Russia and Ukraine shows no sign of ending, pushing up gasoline prices in the first half of the year and showing no signs of stopping. Therefore, the costs of enterprises will likely continue to increase, affecting the selling price and competitiveness of products. The export forecast of the wood industry in the second half of the year is still challenging and difficult to fulfill the export target of 16.5 billion USD in 2022.

Challenges for the furniture industry in big markets

This year, the wood industry aims to export 16.5 billion USD. Thus, after the first 7 months of the year, the industry has implemented 58.8% of the plan, according to which, in the remaining 5 months of the year, wood and wood product exporters need to bring back about 6.8 billion USD for the whole industry to achieve the target.

However, the export situation of the wood industry in the last months of the year is forecasted to have many challenges, making it not easy to achieve the target.

According to the Center for Italian Industrial Research (CSIL), the world furniture market will reach about 500 billion USD in 2021, reaching a much higher consumption level than before the pandemic. Among the world's top 10 furniture import markets, the United States, Germany, the United Kingdom and France account for about a third of world furniture consumption. In the first 5 months of 2022, these 4 countries continue to be the leading markets for importing wooden furniture.

According to statistics from the International Trade Center (ITC), the United States is the largest importer of wooden furniture in the world market, reaching $13.5 billion, up 14.7% over the same period. period 2021. Vietnam is the largest wooden furniture supplier to the US, accounting for 36.9% of total import value to this market.

Vietnam's wooden furniture products exported to the US market are mainly low-priced products, but high inflation in the US is having a big impact on middle- and low-income people. Tightening consumer spending is impacting US demand for wooden furniture.

German wooden furniture imports in the first 5 months of 2022 reached $2.7 billion, down 0.2% over the same period in 2021. In which, the proportion of German wooden furniture imports from Vietnam was only accounted for 3.8% in value. Germany's share of wooden furniture imports from Vietnam is still relatively small in total imports.

The UK is the world's third largest import market for wooden furniture, the UK's import demand for this item increased sharply in the first 5 months of 2022, reaching $2.4 billion, up 26.3% over the same period last year. in 2021. In which, the proportion of imports from Vietnam accounted for only 7.6% compared to the same period in 2021.

France is the 4th largest import market for wooden furniture in the world market, and the demand for French wooden furniture imports is also always high. In the period 2017 - 2021, the value of French wooden furniture imports averaged 3.9 billion USD/year, growing on average 8.5%/year.

In the first 5 months of 2022, French wooden furniture imports reached US$2 billion, up 2.7% over the same period in 2021. The proportion of French wooden furniture imports from Vietnam accounted for only 4.8% in total imports, is still very low compared to the import demand of the market.

It is known that in the first 7 months of 2022, the top 5 export markets for wood and wood products include the United States, China, Japan, Korea and Canada, respectively.

During this time, Vietnam is the largest supplier of wood and wood furniture products to the US, accounting for 57,23% of the total export value of the wood industry.

In July 2022, the export of wood and wood products to the number 1 market in the United States was estimated at 685,037 million USD, compared to July 2021, down 18,53%. Cumulatively, the export of wood and wood products to the US in 7 months was estimated at $5,561 billion, down 5.6% over the same period last year.

Meanwhile, the export of wood and wood products to China's second largest market is estimated at 209.266 million USD, up 91,42% compared to July 2021. Cumulatively, the export of wood and wood products to the Chinese market in 7 months is estimated at 1.158 billion USD, an increase of 25,48% over the same period in 2021.

The third is the Japanese market, in July 2022, the export of wood and wood products to this country was estimated at 180,027 million USD, an increase of 39,68% compared to July 2021. In the first 7 months of the year, the export of wood and wood products was estimated at $1.025 billion, an increase of 22,83% over the same period in 2021.

The fourth place is South Korea, in July 2022, wood and wood products to this market was estimated at US$71,386 million, down 12% compared to July 2021. In the 7 months of 2022, the export of wood and wood products to Korea is estimated at 602,149 million USD, up 12,66% over the same period last year.

The fifth is the Canadian market, in July 2022, the export of wood and wood products to this market was estimated at US$20,557 million, down 19,79% compared to July 2021. In the first 7 months of this year, the export of wood and wood products to Canada is estimated at 154,142 million USD, compared with the same period in 2021, down 1.63%.

It is known that according to a survey by Viforest and Forest Trends, most wood businesses have their orders reduced and their revenue plummeted. Viforest believes that the export of wood and forest products in the last months of the year will continue to face difficulties due to high prices of raw materials and products. Currently, orders from the US, European and UK markets are declining sharply, directly negatively affecting the production and business activities of enterprises in the industry today. In addition, the wood industry is also facing a case initiated by the US Department of Commerce (DOC) for wooden cabinets and dressing tables.

Recently, the Timber Association in collaboration with Forest Trends has surveyed 52 industry enterprises on the situation of orders, production and business. The results show that out of 45 enterprises currently exporting to the US, 33 enterprises recorded a decrease in revenue of nearly 40% compared to the first months of the year. Only 10 businesses reported an increase in revenue compared to the previous months, but the increase was only about 11%.

The same goes for the EU market. Specifically, out of 38 enterprises participating in this market, 24 enterprises recorded a decrease in revenue of over 41% compared to the previous months. Only 4 businesses reported an increase in revenue, at 14%.

About 71% businesses said that the order situation from now until the end of the year will continue to decrease. According to businesses, with the current market situation, 44% businesses think that their revenue will decrease by about 44% in the whole year of 2022.

Source: danviet.vn