Currently, many companies in the wood industry have received export orders to the EU until the end of the third quarter of 2022 and are still continuing to receive orders in the fourth quarter of 2022. Exporting wood and wood products, especially wooden furniture to the EU market, is considered to have many advantages in the coming time.
Wood export orders to the EU are “closed” by the end of the third quarter
Wood export orders to the EU
Currently, many companies in the wood industry have received orders to export to the EU until the end of the third quarter of 2022 and are continuing to receive orders in the fourth quarter of 2022. Exporting wood and wood products, especially wooden furniture to the EU market, is considered to have many advantages in the coming time.
Wood exports to the EU increased in the first quarter of 2021
According to data from the General Department of Customs, it is estimated that in March 2022, Vietnam’s export turnover of wood and wood products to the EU market reached 71.3 million USD, up 0.4% compared to March 2021. . Accumulated from the beginning of the year to the end of March 2022, the export of wood and wood products to the EU market is estimated at 198.6 million USD, up 6.1% over the same period in 2021.
In the face of complicated developments in the epidemic situation and increasing geopolitical tensions, the export of wood and wood products to the EU market still increased significantly in the first months of the year. In which, in the first 2 months of the year, wooden furniture is the main group of goods exported to this market, reaching 104.3 million USD, up 5.3% over the same period in 2021, accounting for 82% of total export turnover. wood and wood products.
Most of the items in the structure of wooden furniture exported to the EU market saw an increase in turnover in the first 2 months of 2022, except for office furniture. The group of wooden furniture products are product lines that bring high added value, so wood industry enterprises are focusing on promoting the export of this product group to the EU market.
In addition, in the first two months of 2022, wood, planks and flooring, fine art furniture, mirror frames exported to the EU market increased sharply compared to the same period in 2021. Export of wood and wood products to the market EU growth is positive, because purchasing power in this market is recovering well. In particular, the group of wooden furniture is on a strong trend of increasing in the EU market.
In the export market structure, Germany has always been the main export market for Vietnam’s wood and wood products in the EU. In the first 2 months of 2022, the export turnover of wood and wood products to the German market reached 27 million USD, up 5.5% over the same period in 2021. Notably, in the first 2 months of 2022, exports wood and wood products to the Belgian market accounted for 10.2% of the total export turnover of wood and wood products to the EU, the growth rate to this market is at a high level.
Opportunity to expand market share
According to statistics from the European Statistics Agency (Eurostats), in 2021 EU imports of wooden furniture will reach 8.6 million tons, worth 22.6 million euros (equivalent to 25.3 million USD). ), an increase of 23.4% in volume and 19.2% in value compared to 2020. In which, EU imports from Vietnam reached 136.4 thousand tons, worth 492.5 million Eur (equivalent to 551). 6.6 million USD), an increase of 3.6% in volume, up 14.7% in value compared to 2020.
The proportion of wooden furniture imports from Vietnam accounts for only 2% of the EU’s total imports in 2021, still very low compared to the EU’s import demand. Therefore, Vietnamese wood enterprises have many opportunities to expand their market share in this market.
According to industry experts, exporting wood and wood products, especially wooden furniture to the EU market, is considered to have many advantages in the coming time. The first is the opportunity brought when China – the leading country in exporting wood and wood products to the EU market is still implementing the “Zero Covid” policy. Accordingly, the country is applying strict measures to control the epidemic situation, so its production and export activities are interrupted.
Besides, foreign investment capital into Vietnam is also increasing, plus the initiative in production technology and input wood materials will be the driving force for Vietnam’s wood processing and export activities. Therefore, wood industry enterprises need to make full use of these opportunities to increase their market share in the EU.
Along with that, the Free Trade Agreement between the EU and Vietnam (EVFTA) is having a very favorable impact on the Vietnamese wood industry, creating a competitive advantage for wood products when the tax rate is gradually reduced to 0%. This also creates an investment attraction from the EU to Vietnam.
Mr. Tran Thanh Hai – Deputy Director of the Import-Export Department (Ministry of Industry and Trade) – said that Vietnam has continuously had large-scale FTAs with a deep commitment such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Binh Duong (CPTPP), EVFTA, Vietnam – UK FTA (UKVFTA), most recently the Regional Comprehensive Economic Partnership (RCEP)… These are all FTAs with trading partners. very large scale of Vietnam, in fact has brought into significant effect.
“Although the company’s orders are closed until the end of the third quarter of 2022 and are still accepting orders for this fourth quarter. However, logistics costs are increasing rapidly, so product prices are very high, many orders are closed due to fluctuations in raw material prices, so businesses are “eaten” in profits, said Ms. Duong Thi Minh Tue – Sales Director. Minh Duong Wood Company – said.
Experts say, though, there are many opportunities to boost exports of wood and lemongrass
wood products to the EU market, but due to the complicated situation of the epidemic, plus recent fluctuations in world politics, it is also affecting the supply chain, raw material supply and costs. logistics. This will hinder the growth of the wood industry to the EU market in the near future.
Giving recommendations to Vietnamese businesses, Mr. Olivier Richard – Director of Richard Négo Bois Company – a leading supplier of wood materials in France, said that with the current shortage of goods and the high price of wood as it is today. , manufacturers need to seize the opportunity in time when signing orders to import raw materials, and businesses should also consider a plan to change the species of wood used to reduce price pressure.
“For example, eucalyptus, which is currently being used by many Indonesian companies to produce furniture for export to the EU. Currently, the price of eucalyptus wood in Vietnam is being pushed up, many Vietnamese businesses are hesitant. One piece of advice for Vietnamese businesses is to look further,” recommended Mr. Olivier Richard.
Meanwhile, Mr. Do Xuan Lap – Chairman of the Vietnam Timber and Forest Products Association – said that using wood from domestic raw materials is also a problem that businesses need to calculate in the coming time to limit their dependence on wood products. dependent on imports.
Vietnam’s wood and furniture processing industry still has a lot of room for development, increasing export turnover and proportion in the total value of global furniture and furniture consumption in general and the EU market in particular. However, in order to effectively exploit those potentials, experts say, the industry must quickly upgrade and improve each stage and strengthen linkages in the supply chain. At the same time, invest properly in branding activities, promoting products to domestic and foreign consumers.
Vietnamese Wood (Source Congthuong.vn)