{"id":82114,"date":"2022-04-05T04:27:24","date_gmt":"2022-04-05T04:27:24","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/high-costs-hit-vietnamese-wood-product-manufacturers\/"},"modified":"2025-09-19T08:57:17","modified_gmt":"2025-09-19T08:57:17","slug":"high-costs-hit-vietnamese-wood-product-manufacturers","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/high-costs-hit-vietnamese-wood-product-manufacturers\/","title":{"rendered":"High costs hit Vietnamese wood product manufacturers"},"content":{"rendered":"
\n

Rising input costs are eroding the profits of Vietnamese wood product manufacturers putting them at risk. Additionally, sanctions on Russia are likely to cause a decline in supplies of timber raw materials from Russia. As timber supplies become tighter, Vietnamese firms will have to compete more fiercely in international markets especially for timbers from the EU and the US.<\/p>\n

According to VIFOREST Vietnam has been importing 5.5 \u2013 6.5 million cubic metres of timber raw material every year. Higher raw material prices coupled with mounting transportation costs have added to import bills driving down profitability.<\/p>\n

Vietnamnews quotes Phan V\u0103n Ph\u01b0\u1edbc, director of T\u00e2n Ph\u01b0\u1edbc Co. Ltd., forecasting that the timber shortage will last for some months. He said his firm had to raise prices to remain operational and would not import additional timber in the short term due to high costs.<\/p>\n

Tran Quoc Manh, general director of Sai Gon Trading Production Development JSC is more concerned about fuel costs than timber prices. He said petrol prices had hit up to VND27,000 (US$1.18) per liter exceeding manufacturers\u2019 capacity to absorb the rise. Accordingly, manufacturers are reluctant to sign new contracts for fear that petrol prices will continue to go up further. \u201cMany manufacturers of wood products have to stay idle amid high fuel costs and freight rates. They are unwilling to sign new contracts due to cost uncertainties,\u201d he explained.<\/p>\n

Rising oil prices have pushed up freight rates bringing transportation costs to a new high. Freight rates have increased fivefold since the pandemic began and the Russian invasion of Ukraine has made things worse.<\/p>\n

The Chairman of Dong Nai Province\u2019s Association of Wood and Handicraft, Le Xuan Quan, has urged the authorities to discuss with shipping lines how to stabilize freight rates. He also called for close cooperation between forest growers and timber-processing firms to develop sustainable sources of timber for the industry to lower the dependence on imported materials.<\/p>\n

A spokesperson for General Import and Export Van Xuan Corp. has suggested a data portal on timber to help manufacturers monitor prices and supply to better manage input costs and inventories.<\/p>\n

Imports from Russia fall<\/strong><\/p>\n

At a recent event hosted by VIFOREST to exchange information on the possible impacts of Russia\u2019s invasion of Ukraine furniture manufactures discussed the search for timbers to substitute for Russian birch. Locally produced acacia and rubberwood higher quality were identified as possible alternatives.<\/p>\n

Vietnam's imports of wood raw materials from Russia in 2021 accounted for 130,220 cu.m or about 2% of total wood raw imports. In January 2022 the volume of imports of wood from Russia continued to drop to just 8,560 cu.m. Over 90% of the timber imports from Russia in 2021 was sawnwood with the balance being plywood, veneer and other wood-based panels.<\/p>\n

The top species Vietnam imports from Russia is birch followed by pine, spruce and fir. In 2021, birch sawnwood imported from Russia into Vietnam accounted for 81% of the total sawnwood imports.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Rising input costs are eroding the profits of Vietnamese wood product manufacturers putting them at risk. Additionally, sanctions on Russia are likely to cause a decline in supplies of timber raw materials from Russia. As timber supplies become tighter, Vietnamese … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83587,"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":[3907,3525,3429],"class_list":["post-82114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-costs","tag-vietnam","tag-wood-products","topic-forestry","topic-sawmilling","topic-wood-furniture","topic-wood-based-panels","area-asia-middle-east"],"acf":[],"yoast_head":"\nHigh costs hit Vietnamese wood product manufacturers - 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\/high-costs-hit-vietnamese-wood-product-manufacturers\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High costs hit Vietnamese wood product manufacturers - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Rising input costs are eroding the profits of Vietnamese wood product manufacturers putting them at risk. 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