Vietnam's W&WP exports are expected to boom in the last months of this year with a growth rate of over 20% amid positive signs of recovery in most markets.

“The export market for timber and wood products is seeing positive recovery signals, particularly in the main export products, including wood chips, which have increased by nearly 38% and timber and wood products, which have risen by over 20% year-on-year,” according to the Director of the Forestry.

Vietnam's wood and forestry sector aims to export $15.2 billion this year, an increase from $14.47 billion last year. However, experts believe that to achieve this target the wood industry will face many obstacles.

Since the slowdown in 2023 from the beginning of this year wood and forestry processing associations and enterprises have been proactive in production and seeking export markets.

A series of market exploration fairs were held, attracting customers’ interest in Vietnamese wood products. Lê Minh Thiện, chairman of the Bình Định Timber and Forest Products Association, said if wood industry businesses comply well with the EUDR it will enhance their competitiveness in the EU and the penetration of wood products into this market will increase significantly. However, if companies fail to meet the EUDR requirements their goods will face difficulty entering the EU market.

Regarding solutions for the Vietnamese wood industry, Chairman of the Việt Nam Timber and Forest Products Association Đỗ Xuân Lập said that businesses need to focus on improving competitiveness based on five main pillars. It includes improving production techniques and using technology, emission reduction, trade promotion and building internal monitoring standards.

Chairman of the Bình Dương Wood Processing Association (BIFA) Nguyễn Liêm assessed that the recent strong growth in wood and wood product exports is a positive outcome for Vietnam’s wood industry amid many difficulties.

“However, to grow and develop sustainably wood industry enterprises need to proactively adapt to all conditions and circumstances, thereby making flexible changes in production, business and export processes. The development of technology and the supply chain for products, from raw materials to logistics, is very critical,” he added.

Source: Fordaq