Growth is expected to slow by about 10 – 12% compared to the last quarters of 2023.
Do Xuan Lap, chairman of the Vietnam Timber and Forest Products Association (VIFOREST), gave the forecast at a recent seminar on sustainable development and challenges for the wood industry held by VIFOREST, along with various associations and member organisations, and Forest Trends in Hanoi.
This year is challenging for Vietnam's wood industry. Consumer demand in main export markets such as the US and the EU has dropped sharply, leading to a decline in orders. Many businesses have had to reduce production, and some businesses even had to stop production.
Therefore, according to him, Vietnam’s exports of wood and wooden furniture will reach only about 13.5 billion USD in 2023, down 15.5% year on year.
Nguyen Chanh Phuong, vice chairman and general secretary of the Handicraft and Wood Industry Association of HCM City (HAWA) also said that the businesses have had recovery in export orders to have enough jobs for workers. Some of them have started to purchase raw materials and prepare for production to meet demand in next year's peak season.
He said the recovery of the wood industry being sustainable or not, will depend on the fair season in March-April 2024.
Vietnam's wood product processors must adapt to overcome existing difficulties, including new regulations in key export markets, according to VIFOREST.
Currently, global markets have not shown many signs of a quick recovery in purchasing power for wood products, especially the US market which has often ordered over 50% of Vietnam's export wood products.
Most wood processing enterprises in Vietnam have received orders again, but they are still facing many difficulties and are operating at moderate production levels.
The world situation is still too uncertain, so the domestic wood processing industry's prospects for recovery and growth in 2024 will be very challenging, insiders said.
For niche markets, the wood processing enterprises certainly will not ignore opportunities to enter those markets, including strict markets, they said, adding this will minimise risks in export.
