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Wood Industry In Vietnam To

Make Operational Reforms UKR Export&Import LLC

Experts have suggested Vietnam’s domestic businesses
in the wood and furniture industry to quickly reform their
operations, and invest more in research and development,
and design to create high added values, according to Vietnam
News Agency.
Wood and furniture exports have faced a host of challenges,
yet ample room remains for the sector to expand its market
share in the time ahead, they said at a recent forum in Ho
Chi Minh City.

Director of the Department of Forestry under the Ministry
of Agriculture and Rural Development Tran Quang Bao said
that wood and wooden products make up nearly 93 percent
of Vietnam’s forestry value every year, and export of the
goods have maintained two-digit growth, even during the
Covid-19 pandemic. instead of a single one to reduce risks, elaborating as three
However, enterprises have experienced a fall in orders as fourths of Vietnamese furniture are absorbed by the US

consumers have tightened their purse strings, he said, adding market, export value falls dramatically when demand from
Vietnamese woodworks depend largely on foreign markets but the market dwindles.
purchasing power from large buyers in China, the EU, Japan, Sharing the same viewpoint, Chairman of the Handicraft
the South Korea and the US decline sharply. and Wood Industry Association of Ho Chi Minh City (HAWA)
Bao held that major export markets’ strict regulations on Nguyen Quoc Khanh said that although Vietnam has been
product legality and sustainability, trade fraud, complicated in the world’s top wood exporters, the country holds a small
trade competition and limited production capacity of domestic market share.
firms also put Vietnamese wood exporters in hot water. Against this backdrop, businesses should outline measures
Meanwhile, Giovanna Castellina, a representative from the to reach new and potential markets, he added.

Italian Centre for Industrial Studies, said that global wood Despites short-term challenges, experts said wood
furniture market size is around US$480 billion, with China enterprises should invest in R&D activities and create new
being the leading exporter, followed by the US, Italy, Germany, designs to improve added values for the products with a view
India and Vietnam. to expanding market share in the coming time.
Geopolitical tensions, conflicts and supply chain disruptions Statistics of the Ministry of Agriculture and Rural Development
will affect the sector’s growth scenario this year, she said, showed that the sector’s export turnover reached US$14.39
adding the sector is forecast to go sideways and not grow billion last year, down 15.8 percent year-on-year.

in 2023, and will rebound in 2025. This year, the sector targets US$15 billion in export
She suggested Vietnamese firms diversify its market revenue.