VIETNAM, June 10 -  

HÀ NỘI — Timber enterprises were calling for support in terms of market information, requirements and consumer tastes to cope with declining exports which were pushing them into many difficulties from the beginning of this year.

The export of timber and wood products, after many years of rapid increases, dropped significantly from the beginning of this year.

Statistics of Việt Nam Timber and Forest Products Association (Viforest) showed that wood exports were estimated at US$4.7 billion in January – May, falling by nearly 30 per cent against the same period last year.

Viforest’s president Đỗ Xuân Lập said that wood companies were struggling with exports due to falling demand in major markets, such as the US, Japan, the Republic of Korea, China, the UK and the Europe Union.

Viet Nam was facing two trade defence investigations on plywood and kitchen cabinets initiated by the US. Lập said that the prolonged investigations seriously affected Vietnamese plywood companies. The biggest problem was that American companies were shifting their purchases to other markets.

Nguyễn Liêm, president of Bình Dương Furniture Association, said that enterprises were facing a lot of difficulties and many of them had to cut their operating capacity by 60-70 per cent.

“The global economic situation remains unpredictable with rising inflation risks in major markets, including the US and the EU. All market signals are not very positive for the wood industry,” Liêm said.

VNDirect Securities said that as a recession was on the horizon, it would be a difficult time for the wood industry of Việt Nam, which might last until the end of this year.

Viforest said that enterprises were in need of support in trade promotion to expand markets through the negotiation and signing of free trade agreements.

In addition, industrial zones specialised in wood and forestry product processing should be established in localities with high potential such as the northern mountainous region, south central coast and southeast region.

Enterprises would also need to improve their capacity to cope with trade defence lawsuits, the association said.

The focus would be on providing support to develop plantation areas with sustainable forest management certificates to meet the market requirements.

Viforest also called for accelerated efforts to speed up the refund of value-added tax to wood companies which had been delayed due to problems related to the tax authority’s approach to verifying wood origin traceability.

It was estimated that about VNĐ6.1 trillion worth of VAT had not been refunded to wood exporters.

The wood and forest product industry set the goal for export value of US$17.5 billion this year, a slight increase over 2022, which was at $17.1 billion, which could be challenging as global consumption demand declines. — VNS