Vietnam exports of wood products are good, there will be a shortage of wooden furniture materials
Release Date: 2018-6-5 Source: Network
Although Vietnam’s furniture exports have been growing well, there is still concern among the furniture industry because the wooden furniture industry needs materials.
According to a report by the Vietnam Customs Administration (GDC), the export turnover of all wood products has increased significantly in the first four months of the year. The
Vietnam exported US$800 million worth of products in April and exported US$2.6 billion in the first four months of 2018, an increase of 9% over the same period last year. The
Wood furniture makers expect that 2018 will be another boom year as global demand is expected to continue to grow.
Most large manufacturers have enough orders to keep them busy until mid-year. Some of them even have orders for a whole year, especially orders from Europe and the United States. The
The director of a wooden furniture company confirmed that since European and American importers transferred orders to Vietnamese companies rather than Chinese companies, customers from both markets have increased this year.
In addition, with the increasing popularity of Vietnamese products in South Korea, exports to South Korea have been growing rapidly. Bilateral free trade agreements between Vietnam and South Korea also promoted exports. The
Nguyen Ton Quyen, vice chairman of Vietnam’s timber and forest products association (Vifores), said that this year’s $9 billion turnover target is achievable. However, to obtain such a high export turnover rate, Vietnam needs a large amount of raw materials. The
The Ministry of Agriculture reported that by the end of April 2018, Vietnam had imported 698 million U.S. dollars worth of wood materials, an increase of 2.5% from the same period last year. The
It is estimated that for every additional US$1 billion in export turnover, the required material will be 3.5 million cubic meters. At the same time, domestic resources (planted forests) can only meet the demand of 10%-15%.
Every year, Vietnam collects between 18 and 19 million cubic meters of wood, but only 200-300 million cubic meters can be used to make wooden furniture. The rest is the production of pieces of man-made wood. The
In order to solve the problem of shortage of materials, Vifores proposed to limit the export of materials, especially for other products. It also suggests making full use of domestic materials such as rubber wood and fruit tree timber. The
“To achieve this, the country’s support will be very important,” Quyen said. “The state should not interfere excessively with the review of the company’s transportation and timber sources.”
According to Nguyen Quoc Tri, Director-General of the Forestry Department, in the long run, Vietnam needs to develop domestic sources of raw materials, which can reduce production costs and trace the sources of timber.