Wood Export Potential: Strategies For Wood Export Growth in Vietnam

Wood export, recently, have experienced remarkable growth, contributing significantly to the National economy. Despite the challenges posed by the Covid-19 pandemic, Vietnam’s wood exports surged to $14.809 billion USD in 2021, maintaining its position as the 6th largest export commodity. However, to fully harness the potential and strengths of the wood production sector, overcoming barriers and implementing breakthrough strategies are imperative. Let’s delve deeper into the strategies and trends shaping Vietnam’s wood export landscape.

Robust Growth in Wood Export

Despite the Covid-19 pandemic disruptions, Vietnam’s wood and wood products exports witnessed substantial growth in 2021, reaching $14.809 billion USD. This marked a 19.7% increase compared to 2020, demonstrating the sectors resilience and contribution to the country’s export revenue. Additionally, Vietnam recorded a trade surplus of $11.88 billion USD in wood exports, further highlighting its competitive edge in the global market.

Key Export Markets for Vietnam’s Wood Products

Vietnam’s wood exports in 2021 were predominantly directed towards traditional markets, with significant growth seen in major economies. Notably, China, the United States, the European Union, Japan, and South Korea emerged as leading destinations for Vietnam’s wood products. The United States remained the largest importer, accounting for 61% of total export revenue, with a remarkable growth rate of 77.02% in 2020. Additionally, other Asian markets and smaller economies like Brazil, Congo, and New Zealand also witnessed significant growth in wood product imports from Vietnam.

 

A detailed analysis of Vietnam’s wood export supply chain in 2021 reveals the substantial contribution of Foreign Direct Investment (FDI) enterprises. FDI-backed wood exports reached $7.464 billion USD, representing a 22.24% increase compared to 2020. These enterprises accounted for 50.4% of total wood export revenue, underscoring the pivotal role of FDI in driving the sectors growth. To further develop the wood industry, attracting more FDI is essential.

Breakthrough Solutions for Economic Boost

The success of Vietnam’s wood exports hinges on several key factors. Firstly, leveraging free trade agreements (FTAs) to expand market access is crucial. Streamlining policies and reducing unnecessary procedures are paramount to enhancing wood exports to FTA markets. Secondly, reducing import tariffs on wood products within FTA countries stimulates consumer demand and increases Vietnam’s export volume. Furthermore, focusing on improving domestic supply chains has propelled wood exports to FTA markets.

Business Owner’s Endeavors – Enhancing Competitiveness

Companies must invest in workforce development through training and skills enhancement. Additionally, investing in technology and machinery is crucial to meet modern design requirements. Improving logistics infrastructure and tightening processes can expedite transportation. Furthermore, obtaining international certifications is essential to elevate Vietnamese products to new heights.

In conclusion, strategic investments and comprehensive development are vital for Vietnam to become a leading wood exporter. With modern software and diverse product lines entering the market, economic growth is inevitable. This growth also creates employment opportunities in rural areas. With in-depth research and investment, Vietnam’s wood exports have the potential to surpass current standings and achieve sustainable growth in the future.

Source: People’s Army of Vietnam Newspaper