New transformation series, many wooden industry enterprises having orders until Q1/2022


Many localities have gradually "opened up" again, businesses have also begun to resume production, the world market is recovering with many agreements and support agreements, and export of wood and furniture returns optimistic results...

After the positive momentum in the first half of 2021, the export of wood and wooden furniture products continued to decline due to the outbreak of the COVID-19 wave and prolonged social distancing in many provinces. The situation is gradually getting better and many businesses have received orders until the first quarter of next year.

The prolonged chain of decline

Due to the complicated developments of the COVID-19 epidemic in our country and in Asian countries, wood enterprises have to face production stagnation, interrupted export activities, and export of wood and wooden products have decelerated from July until now.

According to statistics of the General Department of Customs, in July 2021, the export turnover of wood and wood products decreased by 14.4%, of which wood products decreased by 16.4%. 

In August, the export turnover of wood and wood products continued to decrease sharply by 39.1% compared to July 2021, wood products decreased by 49.1%, especially wooden furniture which has the main export turnover decreased sharply compared to the same period last year. 

In September, exports of wood and wood products reached US$701.23 million, of which, wood products reached US$422 million, continuing to decrease by 19.6% over the previous month.

For 9 months, the export of wood and wood products reached nearly USD 11.11 billion, up 30.6% over the same period in 2020, thanks to the good period at the beginning of the year. In which, the export of wood products still maintained a high growth rate and was estimated at USD 8.42 billion, up 31.3% over the same period last year.   

By the end of September, many localities have eased the distance, the production of goods is gradually recovering. The world economy is gradually recovering due to increasing rates of vaccination against COVID-19. The need to establish businesses will increase in many major markets around the world as results of economic recovery are the factors driving the demand for office furniture to increase rapidly in the last months of the year. 

Xuất khẩu gỗ và sản phẩm gỗ qua các tháng năm 2020 - 2021


Nguồn: Cục Xuất nhập khẩu 

Motivation from the US market  

Top 5 export markets for office furniture in Vietnam, including: USA, Japan, China, UK and South Korea.

According to the Import-Export Department - Ministry of Industry and Trade, export of office furniture decreased in two consecutive months in July and August. In September, export of office furniture continued to decrease by 43.8% compared to September 2020 and reached USD 18 million.

In the first nine months of 2021, export of office furniture is estimated at USD 347.5 million, up 28% over the same period last year. 

In the first 8 months of 2021, the US market was the number 1 destination for office furniture and reached USD 204.9 million, up 44.2% over the same period in 2020. The proportion of exports to the United States accounted for 61.9% of the total export value of office furniture in the country.

Next, office furniture was also exported to other markets such as Japan with USD 50.9 million, up 9.9% over the same period in 2020.

Notably, on October 1, The US and Vietnam have reached an agreement on illegal logging and timber trade. The signing of this agreement will contribute to improving the reputation of Vietnam's wood industry, laying the foundation for sustainable forestry development and serving the interests of the people and businesses of the two countries.

Despite being a large global market for wooden furniture production, the demand for importing this item in China is still quite high. In the first eight months of this year, China's wooden furniture imports from Vietnam reached USD 60.5 million, up 8.1% over the same period last year, accounting for 9% of the total import value of this market.

Xuất khẩu đồ nội thất văn phòng của Việt Nam

năm 2020 – 2021 (ĐVT: Triệu USD)

Nguồn: Cục Xuất nhập khẩu 

Many advantages ahead

Changes in the Government's pandemic prevention plan, from efforts to achieve "zero COVID-19" to accepting "living with COVID-19", have resolved difficulties for more than 4,500 Vietnamese wood and furniture enterprises and returned their production.

An economic expert said that by the end of 2021 and the beginning of 2022, the wave of structural transformation that will increase the export proportion of value-added products, reduce the export proportion of wood materials at low value is expected to take place strongly.

Notably, the industry's next growth driver will come from shifting the global supply chain. The EVFTA Agreement, which officially took effect from August 2020, also helps Vietnamese wood exporters increase their market share in European countries.

Along with that, the roadmap of bilateral and multilateral FTAs such as: The CPTPP, RCEP and bilateral FTAs with Japan, Korea and China contributes to removing tariff barriers, creating conditions for businesses to boost their exports.

According to the Vietnam Wood and Forest Products Association, the prospect of exporting wood and wood products from now until the end of the year and the beginning of 2022 is very positive, because the main export markets such as the United States and EU countries are starting its post-COVID-19 recovery.

Accordingly, Vietnam's office furniture exports will grow positively because the domestic epidemic is controlled, the demand in the world market increases; Many businesses have orders until the end of the year and even the end of the first quarter of 2022.