According to Global Wood Trade Network, Vietnam’s exports wood and wood products fell by 34.8% to US$1.6bn year-on-year in January and February 2023.
This is due to a fall-off in demand, according to the Export and Import Department under Ministry of Industry and Trade.
In February 2023, exports of wood and wood products in Vietnam decreased by 0.7% from January to $800m, and down 10% compared to the year before.
Exports of wood products, including furniture, contributed the most to the decline, posting a revenue of $490m, down 29.7% from 2022.
Industry experts argued that ever since the peak of COVID-19 pandemic where consumers spent their purchasing power on home improvements during lockdowns, global demand for furniture has decreased significantly.
Furthermore, global inflation dampened demand in the wood industry in the year-end period in 2022 and early 2023, local online newspaper VnEconomy cited the chairman of the Vietnam Timber and Forest Products Association (VIFOREST) as saying.
In 2022, Vietnam recorded over $16bn worth of wood and wood products exports, which is 3.8% above the target set by Vietnam, in spite of high inflation, rising material costs and log-jammed supply chains.
In 2023, the country expects to clock in as much as $18bn from wood and wood products exports, with a focus on wood pellets and wood chips to reach $1bn, as the spike in the cost of fuel has raised interest in using these products as alternatives to heating.
Source: Global Wood Trade Network