The export of wood and wooden furniture surpassed US$6.42 billion at the end of May 2021, setting a record high and overcoming the effects of the epidemic. This is an increase of 42% over the same time in 2020. provides COVID-19
The global COVID-19 pandemic has had a significant impact on several product supply chains in the international market, including Vietnam’s export and wood processing sectors.
Vietnam’s wood processing and export business, despite the problematic developments of the pandemic from nations generally and from the country specifically, nonetheless surpassed expectations.
Tremendous growth
The export of wood and wooden furniture reached more than USD 6.42 billion by the end of May 2021, up 42% over the same time in 2020, according to customs figures.
A significant rise of over 57% from the same time in 2020 was seen in the export value of wooden furniture, which came to around USD 5 billion. The COVID-19 outbreak had less of an impact on exports than this record-high number, but the business is still having problems.
The wood industry businesses, according to Mr. Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development, have adjusted to the new environment, stabilized output, and strengthened online trading to find overseas partners to expand. As a result, even if the COVID-19 outbreak has negatively impacted business and production, Vietnamese wood industry firms continue to take the lead, and more and more global clients choose to source from Vietnam.
“Additionally, there is still much opportunity for growth in the global furniture industry. Vietnam now exports more than 90% of the world’s wood and wood-related goods, yet this represents around 9% of the market. For the timber sector in Vietnam to grow and dominate With the current robust and impressive export growth rate, I believe Vietnam can be ranked between fourth and third in the world for exports of furniture rather than being the fifth largest “Deputy Director of the General Department of Forestry, Ministry of Agriculture and Rural Development, Mr. Bui Chinh Nghia, shared.
Vietnamese wood processing and exporting businesses are immediately happy with the surge in orders and export sales. However, because of the spike in orders during the pandemic, many firms won’t be able to respond as quickly. Since the raw material supply is disrupted, a new round of product traceability is required. rigorously by client standards; in which tight implementation of product traceability is made to prevent a product detail from clogging the entire export cargo.
[Vietnamese furniture and furniture products conquer the US market]
Vietnam has established a legislative framework known as Decree 102/2020-ND-CP establishing the Legal Timber Guarantee System to regulate the source of imported raw materials for processing. As a result, the Vietnam Timber and Forest Products Association have requested that ministries and branches instruct specialized agencies to demand that importing companies provide and additionally declare documents like the logging unit, the certificate of permission to exploit the forest lot issued to the forest owner, the certificate of registration as a wood processing establishment, the license to be allowed to export, the document explaining the origin of the timber, etc. No information about the exporting country, but information about the country of exploitation…
The second half of the year saw a lot of orders.
With markets in 140 nations and territories, Vietnam has emerged as one of the world’s top exporters of wooden furniture. As a result, the wood sector in Vietnam consistently catches the interest of both domestic and international partners. As a result, importers continue to select Vietnam as a reliable supplier despite the world’s need to deal with the spread of the COVID-19 outbreak thanks to efforts and ingenuity in the manufacturing process.
Owner of the Furnis furniture business and director of Viet Products Import-Export Joint Stock Company (Viet Products – Ho Chi Minh City), Mr. Nguyen Van Sang, said that Viet Products’ clients are market importers. More orders have been placed by the US and European nations than in 2019 when COVID-19 was not an epidemic.
In addition, the firm has several new clients in the US market this year, which will increase orders by around 30% in 2021 compared to this time in 2019. These consumers are on the go, traveling from China to the Vietnamese market. As a result, the Viet Products firm has also prepared a sufficient number of employees to complete these orders through the end of 2021.
According to Mr. Nguyen Chanh Phuong, vice chairman of the Ho Chi Minh Handicraft and Woodworking Association (HAWA), until the end of 2021, many companies that produce and export wooden furniture and handicrafts that are members of HAWA will also get orders from overseas buyers. Compared to before the COVID-19 pandemic, this is a really solid development step for the wood processing and export business.
Thuan An Wood Processing Joint Stock Company is not out of the “eye” of furniture importers, along with other companies that concurrently got several orders for fine art furniture for export.
According to Ms. Tran Thi Xuyen, General Director of Thuan An Wood Processing Joint Stock Company, this year’s scenario is quite different from previous years, when enterprises were struggling greatly due to the COVID-19 outbreak, particularly in terms of commodities.
“The orders from international importers have increased by around 30% since the start of the year. The corporation has scheduled extra labor for employees when it receives more orders than anticipated. Orders can only be fulfilled on Saturdays and Sundays. Workers in the plant continue to diligently undertake steps to stop the COVID-19 pandemic throughout this period, even working overtime. Employees maintain a minimum of 2 meters between each other when working alone and avoid touch “Ms. Tran Thi Xuyen remarked.
Importers report that due to the pandemic, governments have implemented social isolation measures and people work from home, creating a strong demand for furniture, mattresses, and cupboards. new to make the area more attractive.
Because of this, people throughout the world have more time and a stronger urge to purchase and look for furniture online. These elements raise the demand for furniture in several areas.
Customers choose Vietnamese furniture because it complies with traceability standards and makes the source of its raw materials clear, said Ms. Xuyen.