Exports of Wood, Wooden Furniture See Strong Recovery

8:53:47 AM | 2/28/2024

The wood and furniture industry showns signs of strong development from the end of 2023 and early 2024 despite many difficulties.

According to Director of the Viet Nam Chamber of Commerce and Industry (VCCI) 's Ho Chi Minh City Branch Tran Ngoc Liem, shipment of the products in December 2023 rose 10.3 percent month-on-month to US$1.6 billion while that in January grew 10.2 percent from the previous month to nearly US$1.8 billion.

This was the only product in the field of agriculture with export value exceeding US$1 billion within a month, and 32 out of 45 key export markets saw growth.

Liem however said that the wood industry faced several problems that affected its sustainability, including risks related to imported timber materials, the EU's deforestation regulations and requirements for wooden products to have low carbon footprints.

Besides, the conflict in the Red Sea caused some shipping companies to announce stops of shipping goods or change schedules, causing freight rates to increase.

In 2023, although export growth was recorded in several markets, such as India (288 percent), Peru (111 percent), Turkey (90 percent), and Norway (52 percent), it was a challenging year for Viet Nam's wood exports.

This was the first year that Viet Nam's 6th most robust export industry recorded negative growth after maintaining an upward momentum over the past two decades.

Wood and furniture exports only reached US$16 billion, down 14.8 percent (much lower than the general export decrease of 4.6 percent).

Source: VGP