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Hanoi (VNS/VNA) – Vietnam’s exports of timber and wooden
merchandise have decreased because of the affect of excessive inflation within the export
market, in keeping with the Ministry of Business and Commerce.
In accordance with the Basic Division of Customs, Vietnam’s export
worth of timber and wooden merchandise in June fell by 4.9% on-year to 1.5 billion
USD. Timber exports in June had been estimated at greater than 1.03 billion USD, down
18.1%.
Within the first six months, the export worth of timber and wooden
merchandise surged by 2.8% on-year to eight.5 billion USD. However the export worth of
wooden merchandise plunged by 4.6% on-year to six billion USD.
Picket furnishings was the important thing export merchandise within the construction of
export timber and wooden merchandise within the first 5 months of this 12 months. Nonetheless,
the export worth decreased because of slowing world demand
The affect of the COVID-19 pandemic, the “zero COVID coverage” in
China and the excessive enter prices because of the Russia-Ukraine battle precipitated many
international locations to face excessive inflation, so customers should tighten their spending to
lower demand for non-essential items like wooden merchandise.
These elements made Vietnam’s export worth of timber and wooden
merchandise plunge within the first half of this 12 months.
Nguyen Liem, Chairman of the Binh Duong Furnishings Affiliation (BIFA)
and basic director of Lam Viet Joint Inventory Firm, mentioned that rising
inflation has made customers in export markets such because the US and EU spend on
important objects first. So, his firm has confronted lowering orders from some
companions.
As well as, the decrease wooden export turnover within the first half was
additionally because of very excessive logistics prices. Even the worth of wood merchandise within the
containers exported to the US market is way decrease than the transport price. For
instance, in some US ports, the freight of 1 container is now round 20,000
USD. In the meantime, the worth of wooden merchandise on this container is about 13,000-15,000
USD.
Excessive transport prices result in an inclination to maneuver orders to
neighbouring international locations like Mexico to benefit from geographical distance.
Nguyen Chanh Phuong, Vice Chairman of the HCM Metropolis Fantastic Arts and
Woodworking Affiliation (HAWA), mentioned the US market accounts for 60% of the
export worth of Vietnam’s timber and wooden merchandise. Vietnam’s wood furnishings
exports to the US market are primarily low-cost merchandise.
Excessive US inflation has precipitated low- and middle-income teams to
tighten their spending, creating a major affect on Vietnam’s wooden product
exports, he mentioned.
The native wooden business’s enterprises have begun to have indicators of
an absence of orders from the US market, whereas another huge markets, such because the
EU and the Republic of Korea, have additionally began exhibiting difficulties because of
inflation.
The decrease export turnover of timber and wooden merchandise within the first
half of 2022 has frightened the wooden business, significantly concerning the export
progress goal this 12 months.
Nguyen Liem mentioned that the wooden business was now one of many items
objects gaining excessive export progress. Nonetheless, the export progress price has been
decrease than the figures within the earlier years.
This 12 months’s timber and wooden product export turnover progress is
forecasted solely to succeed in 5-7%. It is going to be difficult to get 19% progress in
2021, Liem mentioned.
That state of affairs is partly because of the 20 to 60% increased value of
enter supplies over the identical interval final 12 months. This reduces enterprise
competitiveness even with technical enhancements to extend labour
productiveness, he mentioned.
He added that the room for export progress was not giant except
there was a breakthrough reminiscent of digitisation, automation, or extra use of
home wooden.
Consultants are at the moment cautious in forecasting the expansion of export
timber and wooden merchandise this 12 months.
Within the context of excessive inflation that has not proven any indicators of
cooling globally, companies are additionally reviewing orders to realize essentially the most
effectivity in manufacturing and enterprise and preserve their consumer.
As well as, Do Xuan Lap, Chairman of the Vietnam Timber and
Forest Merchandise Affiliation, mentioned an issue for the wooden business immediately was
that Vietnam wanted to develop a big, high-quality home wooden uncooked materials
supply to take care of its aggressive benefit.
Nguyen Quoc Tri, Director of the Basic Division of Forestry,
mentioned the division would coordinate with associations within the wooden business to
remedy the issue in uncooked supplies./.
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