Exported wood products fetch $2.9b

Exports of wooden products in the year to November 15 generated $2.89 billion, rising 36 percent year-on-year, making it quite easy for the industry to cruise past the annual target $3 billion.

Vietnam Timber and Forest Product Association (Vifores) predicts total export sales this year will hit $3.2 billion, substantially higher that the record of $2.8 billion achieved in 2008.

Exporters attribute the sharp increase to high demand from key markets like the US, EU, and Japan. The demand for simple and less expensive products have still sustained since last year’s recession and thus benefit Vietnamese processors and exporters.

Ngo Thi Hong Thu, deputy director of Truong Thanh Corp, told the Daily that “products made of planted wood such as rubber and acacia in simple designs are still preferred by customers.” The company’s export to traditional markets including the US and European countries next year is expected to grow by 8-10 percent, she said.

Despite the high growth rate, local exporters are still facing difficulties, including higher input costs and barriers in overseas markets, said Nguyen Ton Quyen, secretary general of Vifores.

Vietnam still has to import one third of its demand for materials, and many exporters are facing difficulties as import prices are expected to increase next year.

In addition, the US Lacey Act against illegal logging next year will come to a new phase and require stricter compliance of Vietnamese exporters to the requirements, he said. – Saigon Times

Tags: Vietnam wood exports