Some wood businesses close orders by the end of 2022

DNHN - The wood industry has grown a little more than it did in 2021. Orders aren't just closed until the end of the third quarter of 2022.

The wood furniture industry's export turnover reached 3.94 billion USD in the first three months of 2022, up 3% over the same period in 2021, thanks to the efforts of all enterprises.

According to Mr Nguyen Chanh Phuong, Vice Chairman of the Handicraft and Woodworking Association of Ho Chi Minh City, thanks to the Free Trade Agreements, the EU-Vietnam Free Trade Agreement (EVFTA), the Global Partnership Agreement and the Trans-Pacific Partnership (CPTPP),... that Vietnam's wood processing industry has conveniently placed orders to many markets, increasing its competitiveness with products from other countries.

Furniture exports to CPTPP nations have risen considerably, driven by a living room, dining room, and bedroom furniture. The export of wood and wood products to this market sector is expected to grow rapidly shortly, as many enterprises expand capacity to meet contracts signed by the end of the second quarter.

Vietrade's deputy director, Bui Thi Thanh An, says that her department works with groups and associations to help businesses get into new markets, buy goods, and get services.

Orders to the US and Europe were closed till the end of the third quarter of 2022, according to Duong Thi Minh Tue, Sales Director of Minh Duong Wood Joint Stock Company (Binh Duong). While the wood sector is enjoying a surge in orders, most firms are suffering from high expenditures accrued since the nation removed the ban.

Typically, when gasoline and fuel prices rise, so do input and auxiliary expenses. Simultaneously, logistics costs are constantly rising, driving up product prices.

Many orders were concluded before raw material price changes, reducing earnings. A container to Europe costs 6,000-8,000 USD, while a container to the US costs 10,000-12,000 USD. But orders cost up to $ 25,000 to move a container from Cat Lai port to the US east coast.

Faced with fluctuating wood input costs, Deputy Prime Minister Le Van Thanh signed Decision No. TTg dated 10/3/2022 authorized the project to create a sustainable and efficient wood processing sector between 2021 and 2030. As a result, the initiative aims to establish a recognized Vietnamese wood product brand in both local and international markets by 2030.

Vietnam aspires to be among the world's top producers, processors, and exporters of wood and wood products. Specifically, the export value of wood and forest products will exceed 20 billion USD by 2025, with over 18.5 billion USD in export turnover.

By 2030, the export wood business will be worth $25 billion, with wood and wood products worth $20.4 billion. It is estimated that by 2030, the value of wood and wood products for domestic use would be above 6 billion USD.

Aiming to have over 80% of wood processing and preservation facilities using sophisticated production technologies, 100% of the wood for export and domestic use comes from legal wood sources, approved for sustainable forest management. The government encourages the development of wood products with competitive advantages, added value, and market demand.

Simultaneously, it is encouraged to prioritize the development of major product groups such as furniture (tables and chairs), outdoor furniture (swing chairs, slides), and artificial wood products (joint board; plywood, chipboard; MDF board); wood products combined with other materials to increase.

 Minh Anh (t/h)