Export of wood and forest products aims to reach 20 billion USD by 2025 and 23-25 billion USD by 2030
Export of wood and forest products aims to reach 20 billion USD by 2025 and 23-25 billion USD by 2030
At a working session with the Vietnam Timber and Forest Products Association on April 23, 2021, Minister of Agriculture and Rural Development Le Minh Hoan requested to socialize resources to support brand building and development. Vietnamese wood products, bringing the value of exported wood and non-wood forest products to a higher level, from 18 to 20 billion USD in 2025 and 23-25 billion USD in 2030.
HARD WITH SHIPPING COSTS
Report to Minister and Chairman of the Wood and Forest Products Association Do Xuan Lap, the export of wood and wood products reached a value of nearly 12.5 billion USD in 2020.
In the first 3 months of 2021 alone, the export turnover of the wood processing industry reached 3.699 billion USD, an increase of 41.5% over the same period last year. Wooden furniture export markets include the United States, Japan, China, EU and Korea, which currently account for 90% of the total export value of wood and forest products.
Body FDI structure in wooden bed
FDI structure in the wood industry
According to Mr. Lap, in the first 3 months of 2021, wood export had to overcome many difficulties and challenges. First of all, transportation costs have increased. For example, in the US market, it is expected that in 2021, wooden furniture exports to this market will reach over 7.8 - 8 billion USD, estimated to require about 500 thousand containers.
However, export freight rates to this market are fluctuating strongly. Before September 2020, the price of a container to the US market was 4,000-5,000 USD/container. In the first quarter of 2021, the freight rate fluctuated from 8,000 USD/container. - 9,000 USD/container (at times, businesses have to pay freight rates at 11,200 USD/container).
Meanwhile in the European market, sea freight prices increased from 400-500 USD/container on the import side, the average freight rate in November 2020 was 1,100 USD/40ft container, then by March 2021 increased to 1,500 USD/ 40 feet container.
INVEST MORE IN ADVANCED TECHNOLOGY
Minister Le Minh Hoan highly appreciated the wood industry business community for overcoming difficulties and helping wood exports achieve very high growth. The export value of wooden furniture and forest products increased 5 times in the past 15 years, from 2.8 billion USD/year in the 2006-2010 period to about 8 billion USD/year in the 2011-2020 period and in 2020, reaching over 13 billion USD .
Thereby, it has affirmed Vietnam's position in the international wooden furniture market. Wood and forest product processing capacity has grown rapidly in scale, quantity, quality and production and business efficiency. Attract more and more investment from the private economic sector.
“If in 2006 Vietnam had about 1,200 wood processing enterprises operating, now the country has nearly 6,000 wood and forest product processing enterprises, of which about 1,000 are foreign-invested enterprises. with a total registered investment capital of nearly 6.5 billion USD,” the Minister emphasized.
