Vietnam processors shut down temporarily

Photo: Dang Cong/Unsplash

Although Vietnam’s wood and wood product exports grew by more than 62% year-on-year in the period January-June 2021, they have been curtailed since then by a fourth wave of the COVID-19 virus, which has disrupted supply chains.

Many factories have been forced to close due to strict social distancing, and wood and wood product exports have fallen sharply. Nevertheless, factories are expected to operate at reasonable production levels from the end of September as vaccination rates increase, and trade is expected to recover.

Vietnam’s wood and wood product exports declined in September due to disruptions to domestic production. According to Association of Vietnam Timber and Forest Product (VIFOREST), the target of achieving export sales of US$14.0 billion in 2021 is now unlikely to be reached.

The total value of wood and wood product exports was estimated at $750 million in September 2021, down by 35% compared with September 2020; of this total, wood product exports were estimated at $420 million, down by 55%, year-on-year. Wood and wood product export turnover has grown overall by 31% in the year to date (January–September 2021), to an estimated $11.1 billion. Wood products accounted for $8.4 billion of the total, also up by 30.9%.

Wood and wood product exports were valued at $177.8 million in the week 14-21 Sep 2021, up by 2.2% compared with the previous week. Of the total, sales of wooden furniture were worth $98.5 million, up by 5.1% compared with the previous week.

Wood imports in September 2021 were estimated at 505,500m3, valued at $182 million. This was an increase of 3.2% in volume and 1.9% in value compared with August 2021 but a decrease of 2.8% in volume and 18.3% in value compared with September 2020. In the first nine months of 2021, accumulated wood imports (logs and sawnwood) were estimated at 5.15 million m3, valued at $1.71 billion, up by 21.7% in volume, year-on-year, and by 33.6% in value.

Log and sawnwood imports into Vietnam accounted for $55.2 million in the week 14-21 Sep 2021, down by 7.1% compared with the previous week.

The COVID-19 pandemic continues to seriously affect production and enterprises. Exports of ceramics and wooden fine arts (wooden handicrafts) decreased sharply in September 2021, to an estimated $7 million, down by 45% compared with August 2021 and by 52% compared with September 2020.

Source: ITTO