December 5, 2022

Vietnam: Exports of Wood Products to Hit Record in 2018


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Vietnam’s exports of lumber and wood products hit a record high in the first 11 months of 2018, at $ 7.22 billion, up 15.63 percent from the same period last year . Over the past decade, the country’s timber processing industry has grown 2.7-fold, making Vietnam the world’s fifth-largest lumber exporter with a six percent market share, second in Asia, and largest in Southeast Asia.

The number of companies increased from 2,500 in 2008 to 4,500 in 2017, including 3,900 national companies and 600 foreign-invested companies. Previously, foreign companies accounted for over 70 percent of the country’s total timber exports, but now the share of domestic companies in total exports has reached 53 percent.

The timber industry is one of the biggest export industries in Vietnam. To ensure sustainable growth and conservation, the government issued Decision No. 1288 / QD-TTg in October 2018, approving a project on sustainable forest management and forest certification by establishing the national forest certification system.

Wood production and processing

Wood production in 2017 was estimated at 11.5 million m3, up 12.4 percent. In the first 11 months of 2018, it stood at 11.6 million m3, up 10% from the same period last year.

The main timber producing provinces in 2017 were Tuyen Quang, Quang Nam, Quang Ngai and Binh Dinh.

In the wood processing sector, Binh Duong attracts a large number of companies due to its workforce and its links with the main forest areas of the Southeast and Central Highlands of Vietnam. In 2017, Binh Duong’s timber processing exports reached US $ 4 billion, accounting for 54.8 percent of Vietnam’s total timber exports. In the first six months of 2018, their exports have already reached US $ 1.5 billion.

To exchange

Exports

In the first 11 months of 2018, forest product exports were estimated at $ 8.49 billion, up 16.6 percent, accounting for almost a quarter of total agriculture-forestry exports. peach.

Within forest products, exports of timber and timber products reached US $ 7.22 billion during the same period, up 15.63 percent from the same period last year.

Exports are expected to reach US $ 9.3 billion in 2018, with an estimated trade surplus of US $ 6.4 billion.

Major export markets include the United States, Japan, European Union (EU), China and Korea, accounting for 87.33% of total exports.

Imports

In the first 11 months of 2018, imports of wood and wood furniture reached $ 2.1 billion, up 6.17% from the same period last year.

The main import markets are China, the United States, Cambodia and Thailand.

Go forward

In October 2018, Vietnam and the EU signed a Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT). This agreement will help improve regulations on forest management, reduce illegal logging and increase exports of wood products to the EU.

In addition, the upcoming Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will lead to a further increase in export orders.

To meet the government’s export target of US $ 12-13 billion by 2020 and maintain their competitiveness, companies in the wood processing sector must continue to focus on improving efficiency and increased investment in advanced technologies and equipment.


Vietnam briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and has offices in China, Hong Kong, Indonesia, Singapore, Vietnam, India, and Russia.

Please contact [email protected] or visit our website at www.dezshira.com.

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