The United States accounts for 56% of total wood and wood products exports. Policy changes from this market will have a strong impact on Vietnam's wood industry.
The information was given at the seminar "Vietnam's wood industry facing changes in export markets" jointly organized by the Vietnam Timber and Forest Products Association (VIFOREST), Binh Duong Wood Processing Association (BIFA), Ho Chi Minh City Handicraft and Wood Processing Association (HAWA), Dong Nai Wood and Handicraft Association (DOWA), Binh Dinh Wood and Forest Products Association (FPA Binh Dinh) and Forest Trends on the afternoon of December 6, in Hanoi.
The United States accounts for 56% of total exports of wood and wood products.
Speaking at the opening of the seminar, Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association - said that the United States is the most important export market of the Vietnamese wood industry and may have very big changes in the near future.
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| Seminar on Vietnam's wood industry before changes in export markets |
These changes may be brought about by the new tax policy that the US government will impose on imported goods to this market in the future. China, Mexico and Vietnam are the three countries with the largest trade surplus with the US, respectively. The US government is expected to impose a 60% tax on all imported goods from China and 15-20% on imported goods from other countries.
It is forecasted that in 2024, Vietnam's wood and wood product exports will reach over 16.2 billion USD, of which exports to the United States will account for 56% of total export turnover, reaching nearly 9 billion USD and imports from this market will reach over 230 million USD. Thus, in the US market alone, the Vietnamese wood industry has a trade surplus of about 8.8 billion USD in wood and product import and export activities. This shows that the United States is the main and most important market for the Vietnamese wood industry.
With the upcoming policy change of the US market, Vietnam in general and the wood industry in particular may benefit from the high US tariffs applied to goods from China.
However, if imports and investments from China to Vietnam are not well controlled, Vietnam may suffer negative impacts. In addition, the United States may also apply new tariffs on goods from Vietnam, including wood products. This will cause difficulties in exports and impact production.
In the context of strong policy fluctuations, what the wood industry needs to prepare and what to do in the coming time is a question being asked by all relevant parties, from state agencies to associations and the Vietnamese wood business community.
Recommendations to businesses and recommendations to authorities
At the Seminar, representatives of the Vietnamese trade agency in the United States, speakers/experts shared and updated information such as: Changes in US trade policy and impacts on Vietnamese industries in the future; Vietnam - US wood trade in the trade relationship between the United States and China; foreign and Chinese investment in Vietnam's wood industry in recent years.
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| The United States accounts for 56% of total exports of wood and wood products. |
Analyzing and forecasting the difficulties and advantages that the Vietnamese wood industry will enjoy, and also making very important recommendations to help Vietnamese wood industry enterprises what to do to reduce the trade balance gap when the wood industry's trade surplus in this market reaches 8.8 billion USD , Dr. Huynh The Du - lecturer of Public Policy, Training Director of the Fulbright Economics Teaching Program in Vietnam - said that Vietnamese enterprises need to increase direct investment in the US market. Along with that, increasing trade/linkage and cooperation with US enterprises, this is also an opportunity for wood industry enterprises to expand their direct distribution market in the US market. Besides, Vietnam needs to create more favorable conditions for US investors in the Vietnamese market.
In the article shared by Dr. To Xuan Phuc - Policy Analyst of Forest Trends Organization - also provided evidence to have a clearer analysis of the wood industry picture, in which, three main observations were made: Shifting supply chains; shifting Chinese investment capital flows to other countries and shifting immigration.
Concluding the discussion, Mr. Do Xuan Lap said that based on the delegates' sharing, in the current context of the wood industry and the upcoming tax scenario for markets, including Vietnam, the Vietnamese wood industry recommends that state agencies continue to accompany the wood industry in the coming time in providing information on policy warnings, trade barriers, and trade defense measures.
At the same time, provide information and support Vietnamese wood industry enterprises when they seek investment opportunities in the US market; organize seminars connecting businesses between the two countries to encourage investment in both forms. In addition, there is also a need to promote/introduce the sustainable and legal Vietnamese wood industry to partners.
The associations also recommended that state agencies need to have open investment policies but still be able to manage foreign investment projects in the wood industry.
In addition to the need for support from state agencies, associations and wood industry enterprises have also taken the initiative in some activities to minimize the impact. Specifically: Ensuring the supply chain meets US requirements; preparing for possible scenarios in 2025, if the US imposes taxes and applies trade defense measures; promoting and introducing a strong image of Vietnamese wood through domestic and foreign fairs and exhibitions; seeking opportunities to open a wood product distribution system in the US; strengthening cooperation with partners, agencies, associations and trading units in the US; increasing information sharing with relevant parties.
The Vietnam Timber and Forest Products Association will be the focal point for receiving information channels to share with wood industry businesses.
Source: https://congthuong.vn/nganh-go-viet-nam-truoc-thay-doi-cua-thi-truong-xuat-khau-362973.html
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