08:31 | 22/03/2016 Trade
(VEN) - The export value of timber and wood products in 2016 is expected to reach US$7.2-7.3 billion with the wood sector confident of its ability to reach or even exceed its target.
The wood sector expects to achieve over US$7.2 billion in export value this year
2016 is expected to be a favorable year to boost wood exports, the import, export taxes applied to timber and wood products will strongly decreased because of several signed free trade agreements.
Huynh Van Hanh, Vice President of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), said that prior to 2010, the Vietnamese wood sector grew 15-20 percent annually, but since 2010 its annual growth rate has decreased to about 10 percent. In 2015, however, the export value of timber and wood products grew at a higher rate compared with other key export products, reaching US$6.9 billion, a rise of 10.7 percent compared with 2014. Therefore, the US$7.2-7.3 billion export target set for 2016 was believed to be feasible.
Nguyen Ngoc Sang, Director of the Minh Sang Furniture Company in Dong Nai Province, said that since the beginning of this year the company had exported an average of about 20 containers of outdoor furniture to the US, France, and Germany each month. With three workshops and 120 workers, the company has concentrated on making products for export. Sang added that the company had shared big orders for exports to the US with some other businesses to ensure on-time delivery this April and May.
Nguyen Dinh Hiep, Deputy General Director of the Sahabak Joint Stock Company, said the company had signed export orders for the first two quarters of 2016. This year, the company can export its products at higher prices compared with 2015, mostly to the EU, Japan, and the US, he added.
Huynh Quang Thanh, President of the Binh Duong Furniture Association, said that while exports to the EU decreased due to unfavorable changes in foreign exchange rates, exports to the EU grew well. Wood businesses have strived to find new export markets such as the Middle East and South America. Meanwhile, wood importers tended to move their orders from China to Vietnam. The Vietnamese wood processing sector has skilled workers, and this is one of the factors helping it attract foreign investment.
Vietnamese products currently account for just 2.68 percent of furniture exports worldwide. However, HAWA Vice President Huynh Van Hanh believes in the capability of domestic wood businesses to increase their market share overseas.
Vietnam Timber and Forest Products Association Vice President Nguyen Ton Quyen said domestic wood businesses needed to improve their production capacity to increase the export value. Many wood businesses in Binh Duong and Dong Nai provinces have taken the initiative in planting forest trees in the Central Highlands and central region to reduce their dependence on imported materials.
Vietnam is the world’s fourth largest timber and wood product exporter, behind China, Germany, and Italy. The US, China, Japan, and the EU are major importers of Vietnamese timber and wood products. The export value of the Vietnamese wood sector is expected to reach US$7.2-7.3 billion this year.
Ngoc Thao & Thuy Duong