Vietnam is estimated to have earned US$1.3 billion from exports of wood products in the first half of this year, down 30 per cent on-year, said the Vietnam Wood and Forest Products Association (Vifores).
Many wood product producers have had to reduce production because they lacked orders, according to a recent survey of producers in Binh Dinh and Dong Nai provinces conducted by Vifores.
The survey showed importers were buying products at prices that were 10 per cent to 15 per cent lower than previous orders, while production costs, including transportation and electricity, had risen. And 70 per cent of wood product producers are facing losses.
Nguyen Ton Quyen, the General Secretary of Vifores, said besides maintaining the traditional markets of Japan, the EU and the U.S., wood product producers should focus on developing markets in Russia and the Middle East.
In March, producers began to search for new markets, including Russia.
However, wood product producers face difficulties in the exchange of Russian rubles into the U.S. dollar or euros.
Quyen said wood product producers had petitioned the Government to support them in solving the Russian ruble exchange issue, which had stymied trade.
Vo Truong Thanh, general director of Truong Thanh Furniture Corporation, said wood product exports to the US showed a slight sign of recovery in April and May.
Several US importers had shifted their purchases from China to Vietnam.
Meanwhile, sales of wood furniture products in domestic market have declined since early this year because of the sluggish real estate market amid economic crisis.
In the domestic market, wood product producers had focused on producing tables, chairs and other study tools for schools in rural areas and developing markets in urban areas, he said. (Vietnam Economic Times)
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