Vietnamese timber companies calling for support in times of economic downturn

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Amid export and order slumps in Vietnam, timber companies in the country are calling for support in terms of market information, requirements and consumer tastes, according to Vietnam Plus.

Orders from Vietnam have dropped 50-60% since the beginning of the year, with the export turnover of wood and wooden products reaching US$3.9bn in the first four months of 2023, down 30.6% year-on-year.

Do Xuan Lap, president of the Vietnam Timber and Forest Products Association (VIFOREST), said there is a falling demand from major markets like the US, the EU, the UK, Japan, South Korea, and China, leading to fall in orders.

Furthermore, Do said that prolonged trade defence investigations by the US into plywood and kitchen cabinets affected Vietnamese’s plywood companies.

As such, VIFOREST find that timber companies are in need of support in trade promotion to expand markets through the negotiation and signing of free trade agreements.

They also need knowledge on how to deal with trade defence lawsuits, according to VIFOREST.

The focus now will be to support the industry in developing plantation areas with certificates on sustainable forest management, to meet market requirements like the recent EU Deforestation-free Regulation.

Additionally, industrial zones specialised in wood and forestry product processing should be established in localities with high potential such as the northern mountainous region, south central coast and southeast region.

Source: Vietnam Plus