3 - 5, August 2022, HCMC, Vietnam

The wood industry targets USD 10.5 billion in 2019

The wood industry targets USD 10.5 billion in 2019

The year 2018 was an important milestone for the wood processing and forest product export sector, including rubber wood. In 2019, the wood industry set a target of USD 10.5 billion.

Opportunities for wood industry from CPTPP and EVFTA

According to Ho Chi Minh City Handicraft and Wood Industry Association (HAWA), Vietnam's wood industry in 2018 has achieved many outstanding achievements despite complicated situations in the world market. This is a good signal for the wood processing and forest product export sector, including rubber wood.

Also in 2018, many important events affecting the wood industry took place. Specifically, Vietnam and the European Commission signed a VPA/FLEGT Agreement in Brussels (19 October 2018). The National Assembly has also formally ratified the CPTPP Agreement (12 November), taking effect for Vietnam from 14 January 2019, and signed EVFTA agreements in the first quarter of 2019. Thanks to these agreements, Vietnam can access new markets such as Canada, Mexico, Peru, etc., in which the import tariff on wood from Vietnam is quite high.

In addition, the Government has set the orientation that for the next 10 years, the export of wood and forest industry smust become a key economic sector in Vietnam's export production.

The wood industry targets USD 10.5 billion in 2019

According to the Ministry of Agriculture and Rural Development, the value of forest products exports in 2018 is estimated at USD 9.308 billion, up 15.9% compared to 2017. It can be seen that wood processing officially surpassed seafood (export reached 9 billion USD), becoming the largest export value in agriculture. The export value of forest products for the whole year reached USD 7 billion.

Sales of top 100 enterprises with impressive revenue of the industry last year increased by 16.3% compared to the top 100 in 2017, reaching over USD 4 billion. In the first 11 months of 2018, the export turnover of wood products of FDI enterprises reached 3.5 billion USD, up 9.54% over the same period last year, accounting for 44% of the total export turnover of wood products (G&SPG) of the whole country. The remaining 55% belonged to domestic enterprises.

The US continues to be Vietnam's largest export market, accounting for 44% of G&SPG's total export turnover, followed by Japan, China, Korea, Britain, Australia, Canada, France, etc.

According to the Vietnam Administration of Forestry, the forest exploitation output in 2018 reached about 27.5 million m3. In particular, exploiting from concentrated plantation forest 18.5 million m3, up 3% compared to 2017, exploiting from scattered crops and re-cultivation rubber trees about 9 million m3 of wood. With this material source, most domestic production needs have been met, creating many advantages for enterprises and improving the growers’ life standard.

Rubber & Tyre Vietnam, The International Exhibition & Conference on Rubber Industry and Tyre Manufacturing anually held in Vietnam, is an ideal place for connecting, enhancing and expanding businesses. Please come to visit Rubber & Tyre Vietnam 2019, which will take place from 26th – 28th June 2019 at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.

Source: ndh.vn

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