Wood exports nearing target of 15.2 billion USD in 2024

Vietnam's wood industry has been affirming its position as a key economic sector, making an important contribution to the country's export turnover.

Based on the achieved foundations, the Vietnamese wood industry is expected to continue to make breakthroughs in the coming time. Photo: Khanh Vu

Big target for wood industry exports As one of the five largest wood exporting countries in the world, the Vietnamese wood industry has set an export turnover target of 15.2 billion USD in 2024, a sharp increase compared to 2023. This is an ambitious figure in the context of many difficulties in the global economy. In 2024, the global economic recession and inflation will last. These factors reduce purchasing power in large markets such as the US and EU. Consumers in these regions tend to cut spending on non-essential products, including wooden furniture. Meanwhile, regulations such as the US Lacey Act and the EU Timber Regulation (EUTR) require Vietnamese businesses to prove the legal origin of wood and ensure transparent traceability. This is a great pressure, especially for small and medium-sized enterprises with limited resources and experience. Wood raw material prices have fluctuated sharply as the global supply chain has not fully recovered after the pandemic. High interest rates and rising energy prices have also put businesses under financial strain. Competition from regional countries such as China, Indonesia and Malaysia is becoming formidable competitors. These countries not only have low production costs but are also investing heavily in technology and developing international markets. However, the wood industry has made efforts to overcome difficulties, recording encouraging achievements over the past year. According to preliminary statistics from the General Department of Customs, in the first 10 months of 2024, wood and wood product exports reached nearly 13.22 billion USD, an increase of 21.2% compared to the first 10 months of 2023. Vietnam continues to be in the top 5 largest wooden furniture exporting countries globally, affirming its competitiveness and reputation in the international supply chain. Wood exports to markets such as Canada, Australia and the Middle East have made significant progress. This is a testament to the efforts to diversify markets and reduce dependence on traditional markets. Overcoming challenges to break through According to Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association - shared, along with finding customers, wood industry enterprises have proactively switched to environmentally friendly materials, recycled materials that are both cost-saving and meet new customer requirements. "Failure to build a good market will greatly affect export sales, especially market promotion and connection. Organizing wood industry fairs creates trade opportunities and allows Vietnamese enterprises to approach customers in the international market. "If the export volume reaches 3 billion USD in the last 2 months of the year, the wood industry's export volume will reach nearly 16 billion USD this year," Mr. Lap shared. Key export markets such as the United States, the European Union (EU), Japan and South Korea continue to be key targets. These markets not only have high demand but also require products that meet standards in quality, design and sustainability. In addition, the Vietnamese wood industry is actively expanding to emerging markets such as Canada, Australia and the Middle East, where demand is increasing and competition is not too fierce. In addition to the turnover target, the wood industry is also shifting from a processing production model to the production of high value-added products. Investing in design, branding and applying advanced technology is a priority strategy to improve competitiveness and meet the strict requirements of the international market. Source: https://laodong.vn/lanh-doanh/xuat-khau-go-tien-gan-muc-tieu-152-ti-usd-nam-2024-1430562.ldo