Vietnam's exports of timber and wood products have decreased due to the impact of high inflation in the export market, according to the Ministry of Industry and Trade.
The export growth of the wood industry is slowing down due to high inflation in many countries which prompts consumers to tighten spending, while logistics costs and prices of input materials are continuously increasing. Besides, the US is also increasing trade remedies.
Making up 10% of the global supply of wood materials, the ongoing Russia-Ukraine conflict along with the sanctions on embargoes imposed on Russia by the United States and the EU will have a strong impact on the global wood processing and export industry, including Vietnam.
Vietnam's wood processing and export enterprises are currently facing new difficulties and challenges because of the ongoing Russia-Ukraine conflict.
Vietnam sees wood and wood works as a spearhead industry, earning export revenues of $18-20 billion by 2025.
Forestry products are one of the few products seeing export growth despite COVID-19 threatening economic development in countries around the world.
The US has decided to conduct an investigation on whether Vietnam is dumping plywood products in the US. The decision could lead to a sharp fall in plywood exports to the market.
The warehouse manager at Truong Thanh Furniture near Ho Chi Minh City did her best to avoid the virus. For weeks, she worked and slept at the factory alongside 200 colleagues, with few people allowed in or out.
The ongoing coronavirus outbreaks are now threatening to bring the timber industry to its knees, with businesses and associations hoping for preferential vaccine treatment and financial support for test kits and other pandemic-related expenses.
Suspension of production at local wood processing enterprises due to the COVID-19 pandemic is having effects on exports, according to the Vietnam Timber and Forest Product Association (VIFOREST).