Due to the impact of Covid-19 imported wood raw materials from major suppliers is now problematic.<\/p>\n
Availability and supply chain disruptions have pushed up prices for imported wood which is affecting the willingness of Vietnamese manufacturers to accept orders with a long delivery period. In addition to the high cost of imports prices of local plantation timber have jumped about 5%.<\/p>\n
Practical solutions taken by the Government and the private sector have helped industries grasp market opportunities and record impressive growth in 2021. By the end of 2021 W&WP exports reached US$14.8 billion, up by 20% compared to 2020 and accounting for 4.4% of the total export earnings by the country.<\/p>\n
In particular, the share of high value-added WPs (wooden furniture, floorings, doors etc.) rose sharply. W&WP exports to top markets, such as the US, China, Japan, EU, South Korea, Canada all grew.<\/p>\n
The high growth rate in 2021 has enabled the wood industry sector to set the W&WP export target for 2022 at US$16 billion. To reach this target when still impacted by the pandemic enterprises will to focus higher value furniture production as well as wood legality assurance. A new generation of free trade agreements (FTAs) have recently been concluded which will help boost trade.<\/p>\n
In 2022, free trade agreements will continue to give tariff incentives for W&WPs exports from Vietnam and attract investment to increase W&WP production capacity. As a result, W&WP exports are expected to be a bright spot for the nation\u2019s economy.<\/p>\n
Imports of wood raw materials stood at US$2.4 billion in 2021 as it was in previous years indicating that domestic supplies of wood are gaining acceptance.<\/p>\n
Average prices<\/strong><\/p>\n In 2020 and the first 5 months of 2021 world wood prices increased continuously and peaked in May 2021. The reason for the surge in prices was the reduced supply as many countries applied social distancing and lock-downs which negatively affected logging.<\/p>\n The surge in prices was also the result of increased demand for house renovation and new construction. From June 2021 price started to ease and then increased sharply again in the last months of 2021 due to the scarcity supply and high demand.<\/p>\n The mean import price for wood in Vietnam was rather low in the first month of the 2021 (US$304.1cu.m for logs) then it increased continuously until May and decreased slightly in June 2021. However the price of wood gradually increased and reached a peak in December 2021 (US$392.6\/cu.m log). In December 2021, the mean import price of logs was US$392.6\/cu.m, up by 14% compared to November 2021. As compared to December 2020 it was up 28.5%.<\/p>","protected":false},"excerpt":{"rendered":" Due to the impact of Covid-19 imported wood raw materials from major suppliers is now problematic. Availability and supply chain disruptions have pushed up prices for imported wood which is affecting the willingness of Vietnamese manufacturers to accept orders with … Continue reading