Four major importers alone, namely the US, China, Japan and the Republic of Korea, accounted for 78.1% of the total export value. The US topped the importers with a value of US$1.1 billion (up nearly 10%), followed by China with US$367.3 million (up 2.8%), Japan with US$350.7 million (up 2.3%) and the RoK with US$288.8 million (up 45.3%).
However, Nguyen Quoc Khanh, chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), warns that the US, as the largest importer of Vietnamese wood and timber products, has reduced the corporation income tax from 35% to 25% to encourage domestic production although it offers preferences for imported goods, especially Vietnamese timber products. Therefore, domestic businesses should avoid shipping products that are growing well in the US.
Currently, Vietnam boasts a strong furniture industry. Exports of most timber products have achieved a quite high growth as global demands are rising.
According to Statistics Canada, the country’s imports of wood furniture from China, the US and Vietnam jumped strongly in the first months of this year. Vietnam got the highest value, which accounted for 12.6% of Canada’s total imports of the products.
Meanwhile, Japan decreased wood and timber imports from China but raised that from Vietnam in both volume and value. It shows a quality improvement of Vietnamese products which are gradually meeting requirements of the market. Vietnamese businesses should ensure a legal and sustainable sourcing and use of wood.
The overall picture of the wood sector in 2018 and the next years is bright. In addition, domestic businesses are dynamic in market expansion. However, they should grasp the opportunity of global changes in wood production to help the wood sector fulfill its set target, says Mr Khanh.