{"id":81253,"date":"2021-09-29T07:47:42","date_gmt":"2021-09-29T07:47:42","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/two-scenarios-vietnams-wood-product-exports-remaining-months-2021\/"},"modified":"2025-09-18T17:22:28","modified_gmt":"2025-09-18T17:22:28","slug":"two-scenarios-vietnams-wood-product-exports-remaining-months-2021","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/two-scenarios-vietnams-wood-product-exports-remaining-months-2021\/","title":{"rendered":"Two scenarios for Vietnam\u2019s wood product exports for the remaining months of 2021"},"content":{"rendered":"

In the first two quarters of 2021 exports of wood and wood products from Vietnam increased but due to the pandemic export earnings will decline in the coming months.<\/em><\/p>\n

According to the Directorate of Customs exports of wood and wood products in the first 7 months of 2021 reached US$9.26 billion, a 57% increase compared to the same period of 2020.<\/p>\n

However, since July social distancing and restrictions on movement in many provinces and cities in Vietnam have impacted production. Exports of wood and wood products in July reached nearly US$1.3 billion, some 17% down year on year. In the first half of August export earning fell 45% compared to July.<\/p>\n

It is possible that covid restrictions will be in place for sometime and this will badly affect production. Covid-19 control measures affect all sector of the timber industry, especially companies in the main wood processing centers like Binh Duong, Dong Nai Provinces and Ho Chi Minh City.<\/p>\n

The response of companies to the recent lockdown has been to reduce the number of workers and reduce or curtail production. Some companies are trying to maintain production at 20 - 50% of capacity in order to partially meet orders and maintain jobs for employees. Workers from plants that have stopped production are facing an uncertain future.<\/p>\n

A recent survey conducted in Ho Chi Minh City, Binh Duong Province and Dong Nai Province by three associations including the Handicraft and Wood IndustryAssociation of Ho Chi Minh City (HAWA), Binh Duong Furniture Association (BIFA) and Dong Nai Wood and Handicraft Association (DOWA) revealed some alarming data. By August 18.5% of association members halted production, 46% of members reduced the capacity and applied the \u201c3 on-site\u201d rule.<\/p>\n

It was estimated that over 80% of workers in the association member plants had temporarily lost their jobs. A study conducted jointly by Forest Trends, VIFOREST and the Forest Products Association of Binh Dinh Province set out two possible scenarios for export in the last months of this year.<\/p>\n

In the first scenario the group assumed the decline in the first half of Auguts will last to the end of the third quarter. By that time the vaccination roll-out will be well underway.<\/p>\n

As a result export earnings will begin to recover from the fourth quarter but would only be around 70% of the first two quarter earnings. If accurate the gross wood product earnings for 2021 will be US$13.55 billion.<\/p>\n

In the second scenario the group assumed the pandemic will not be controlled so in this case the decline in export earnings will continue until year end such that 2021 earnings would be only US$12.69 billion.<\/p>\n

Enterprises starved of raw materials and workers<\/strong><\/p>\n

Timber enterprises in Binh Dinh have a huge backlog of export orders but there is a severe shortage of workers and raw materials and the supply chain has been disrupted.<\/p>\n

According to Le Minh Thien, Chairman of Binh Dinh FPA thanks to the USA, EU, UK and Australia markets enthusiastically import furniture from the beginning of 2021 until the end of August furniture manufacturers in Binh Dinh have exported a wide variety of products through online channels.<\/p>\n

However, now a number of localities in Binh Dinh Province have to comply with the Government's Directive 16 for Covid-19 prevention and control. The restriction on the movement of people has forced many wood processing businesses in the area to stop operating.<\/p>\n

He also said if this situation persists throughout September furniture exports from Binh Dinh manufacturers will plummet by 30-40% compared to July and the situation will be even more severe in October.<\/p>\n

According to the Binh Dinh FPA several large furniture factories in Binh Dinh have implemented the \u20183 on the spot\u2019 system to maintain production. However, businesses can only sustain this for a short time because the costs incurred are too high and regular screening is costly and time consuming.<\/p>\n

Assuming an enterprise has 500 workers working \"3 on the spot\", a test for all workers will cost about VND 70 million. In one month, four tests are required.<\/p>\n

Implementing this \u20183 on the spot\u2019 system creates other problems as workers still face difficulties when going through quarantine checkpoints. Many localities have become too worried and applied strict measures to prevent people from going to work in order to manage prevention and control measures. It was not until FPA Binh Dinh raised this with local authorities that workers could go travel to work.<\/p>\n

Wood processing enterprises in Binh Dinh have to face another difficulty, the supply of raw materials. The \u2018furniture capitals\u2019 of Binh Duong and Dong Nai are now paralysed and supply chains are broken. This has pushed up the price of timber raw materials.<\/p>","protected":false},"excerpt":{"rendered":"

In the first two quarters of 2021 exports of wood and wood products from Vietnam increased but due to the pandemic export earnings will decline in the coming months. According to the Directorate of Customs exports of wood and wood … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715],"tags":[3309,3525,3429],"class_list":["post-81253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-exports","tag-vietnam","tag-wood-products"],"acf":[],"yoast_head":"\nTwo scenarios for Vietnam\u2019s wood product exports for the remaining months of 2021 - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/two-scenarios-vietnams-wood-product-exports-remaining-months-2021\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Two scenarios for Vietnam\u2019s wood product exports for the remaining months of 2021 - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"In the first two quarters of 2021 exports of wood and wood products from Vietnam increased but due to the pandemic export earnings will decline in the coming months. 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