The export growth of Vietnam’s timber industry in 2020 might be equal to ZERO percent.
According to VCCorp.vn, At the online seminar “Recovery – Acceleration – Breakthrough – Development – Sustainability of the timber industry in the post-epidemic period” by Forest Trends Organization, Ho Chi Minh City Association of Fine Arts and Wood Processing (HAWA), Wood Association and Vietnam Forest Products (VIFOREST) and Wood Processing Associations of Binh Duong, Dong Nai, Binh Dinh … co-organized, took place on the afternoon of April 28.
FOREST PRODUCTS ASSOCIATION OF BINH DINH http://fpabinhdinh.com.vn/
Binh Duong Furniture Association (BIFA) http://www.bifa.vn/en-US/Default.aspx
DONG NAI WOOD ASSOCIATION AND HANDICRAFT http://dowa.vn/
Vietnam ranked fifth in the world, second in Asia and first in Southeast Asia in the export of forest products and wooden products. In 2019, Vietnam imported wood materials about 2.52 billion USD.
At the seminar, delegates said that Covid-19 had a strong impact on the wood industry and forecasted that the export growth of the industry in 2020 could be 0%.
According to the General Department of Customs, in November, exports of wood and wood products reached more than 958 million USD. Accumulated 11 months of 2019, exports of wood and wood products reached more than 9.526 billion USD, up 18.1% over the same period last year. In particular, the export of wooden products reached approximately US $ 7 billion, up 22.2%.
With these impressive figures, exports of wood and wood products for the first time exceeded the $ 9 billion mark and far exceeded the 2018 record of $ 8,907 billion.
With the continuous export value of over US $ 900 million / month, even reaching more than US $ 1 billion / month, by the end of 2019, the export value of wood and wood products will surpass the US $ 10 billion mark for the first time.
In 2020, Vietnam’s timber industry aims to reach 12 billion USD in export turnover. According to the General Statistics Office, in the first quarter of 2020, the export value of this commodity group reached US $ 2.58 billion, up 13.9% over the same period last year and reached 21.5% of the year plan.
In the first month of this year, exports to the US reached US $ 431.53 million, accounting for 51.7% of the country’s total export turnover of this commodity group, down 28.1% compared to December 2019 and down 9.1. % compared to January 2019; exports to Japan decreased by 29.1% and 22.3% respectively, reaching 89.79 million USD; exports to the EU decreased by 22.9% and 28.8% respectively, reaching 77.73 million USD; exported to China 101.63 million USD, accounting for 12.2%, up 4.3%, down 15% compared to December 2019 but up 8.9% compared to January 2019.
Export of wood and wood products in January 2020
(According to data released on February 12, 2020 of GDC)
|Market||January 2020||Compared to December 2019 (%)||Compared to January 2019 (%)||Proportion (%)|
|Total export turnover||
Particularly wood products
|Hong Kong (China)||273,828||9.83||-40.49||0.03|
Source: Chance list
In general, exports of wood and wood products in the first month of this year to most markets experienced a decline in turnover compared to January 2019; in which, export dropped sharply in some markets: Austria dropped by 92.8%, reaching 0.03 million USD; Greece decreased by 74.8%, reaching USD 0.32 million; U.A.E decreased by 63.6%, reaching US $ 23.6 million. However, exports to the Czech market increased sharply by 178.7%, reaching US $ 0.33 million; Cambodian exports also increased by 151%, reaching US $ 1.5 million.
However, due to the occurrence of the Covid-19 epidemic and heavily affecting many markets. In April 2020, about 80% of the orders were suspended, the major export markets almost froze … seriously affected the growth of the industry, as predicted by the Wood and Forestry Association. For Vietnamese products (VIFOREST), the export growth of the industry in 2020 could be equal to 0%, even negative growth.
Survey results with 124 enterprises in the industry at the end of March 2020 showed that 100% of enterprises were affected by Covid-19 epidemic. In particular, 75% of enterprises said that the initial damage was estimated at VND 3,066 billion.
More than half of the businesses surveyed said that they had to downsize production. About 35% of businesses though operating normally but will have to suspend production in the near future; 7% of businesses have ceased operations and only 7% of businesses still operate normally.
Survey results with 124 enterprises in the industry at the end of March 2020 showed that 100% of enterprises were affected by Covid-19 epidemic.
Experts said that in order to overcome difficulties, the Government should soon issue new mechanisms and policies to support businesses, and businesses themselves must quickly change to adapt to the new situation. Vietnam’s timber industry needs to change its thinking, formulate and promote links between enterprises in the industry, build domestic supply chains and develop supporting industries …
The impact of Covid-19 shows that Vietnam’s wood export supply chains are currently not good, depending in part on imported raw materials and accessories, especially from China.
The opportunities to reduce this dependence are the trade agreements signed by Vietnam over the years such as: CPTPP / EVFTA / VKFTA / AEC … From there, the timber industry can receive production shifts, orders, investments, restructuring supply chains from the US and European countries, Japan, … reduce dependence on China. This shift can create breakthroughs in future industry development.