Despite facing significant challenges, Vietnam's wood and wooden furniture exports have displayed signs of recovery since late 2023, according to Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry (VCCI)'s Ho Chi Minh City Branch.
Liem highlighted that exports surged in December 2023 by 10.3% month-on-month to $1.6 billion and continued to grow in January 2024 by 10.2% to nearly $1.8 billion. Notably, this sector was the sole agricultural product to exceed $1 billion in exports within a month, with 32 out of 45 key markets experiencing growth.
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However, Liem cautioned about sustainability issues impacting the wood industry, including risks associated with imported timber materials, EU regulations on deforestation, and demands for products with low carbon footprints. He also mentioned challenges arising from conflicts in the Red Sea, leading to increased transportation costs.
Despite export growth in various markets such as India, Peru, Turkey, and Norway in 2023, Vietnam's wood exports faced a tough year, marking the first instance of negative growth in two decades, with a 14.8% decline to $16 billion.
Source: Saigon News