- In the first 11 months of 2021, the export value of wood and wood products of our country is estimated at 13.2 billion USD, up 20% over the same period in 2020.
- Vietnam’s wood industry is facing the phenomenon of Chinese wood disguised as Vietnamese wood to sneak into the US market.
Growth efforts of the wood industry
According to data from the Import-Export Department (Ministry of Industry and Trade), in the first 11 months of 2021, the export value of wood and wood products of our country is estimated at 13.2 billion USD, up 20% over the same period in 2020.
It is estimated that for the whole year of 2021, the export value of wood and wood products will reach 14.3 billion USD, up 14.3% compared to 2020 and completing 98.7% of the target set for 2021.
According to the Vietnam Wood and Forest Products Association, Vietnam is currently the second-largest exporter of wooden furniture globally. However, the proportion is still small, leaving a lot of room to increase market share.
The growth driver of the wood industry focuses on the group of wooden furniture. The export value of this group of products accounted for 67.6% of the total export value of wood and wood products in the first 11 months of 2021, reaching 8.2 billion USD, up 21.7% over the same period in 2020. Market size The global wooden furniture market is very large and is expected to increase soon.
In addition, in the first 11 months of 2021, items such as wood, boards and flooring, wood chips, wooden doors, and mirror frames for export also have a high growth rate.
Chinese wood – Challenges for Vietnam’s wood industry
Although it has overcome many difficulties due to Covid -19 and successfully finished in 2021, the Vietnamese wood industry still has many problems to worry about. Especially the phenomenon of Chinese wood disguised as Vietnamese wood to sneak into the US market.
According to the General Department of Customs statistics, in the first ten months of 2021, Vietnam remains the largest wooden furniture supplier to the United States, reaching 7.9 billion USD, up 44.5% over the same period in 2020.
The Vietnam Timber and Forest Products Association said that the US had applied trade remedies against a number of wood products and wood products exported from China in the past two years. Including measures to impose anti-dumping duties, high subsidies with tax rates from 55% to nearly 200% for some items such as plywood, kitchen cabinets, bathroom cabinets, wooden sofas, etc.
To bypass this control gate, some Chinese enterprises redirect investment or find measures to avoid the above tax rate, in which Vietnam can be selected as one of the destinations.
The US has created many barriers for suppliers to protect domestic production, including Vietnam. The US Customs and Border Protection Agency has recently initiated an investigation against evasion of the obligation to pay trade remedy taxes. And apply temporary measures to wooden cabinet products imported from a number of Vietnamese companies.