Wood export orders are coming back, but the number of orders is no longer as large as before, and delivery times are shortened.
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Sign of improvement
Statistics show that, in the first 6 months of 2023, the export value of wood and wood products is estimated at 6 billion USD, down 28.8% compared to the same period in 2022. Of which, the export value of wood products is estimated reached 4.1 billion USD, down 32.8% compared to the same period in 2022.
According to Ms. Le Hai Lieu - Chairman of the Board of Directors Misswood turning chair joint stock company Virtue Thanh said that Vietnam's export of wood and wood products continues to decline sharply due to the impact of the difficult situation and declining purchasing power of many major economies. With Virtue Thanh, although wood exports in the first half of the year have not prospered, but compared to goals and plans MissThe company's target for 2023 is still guaranteed.
In particular, from the end of June until now, the wood export market has begun to show positive signs again when the number of customers asking for goods, customers visiting customers, attending fairs, customers asking prices... is more. “Contrary to a few months ago at the end of last year, the market was very quiet, but now it is starting to improve again.”, Ms. Lieu informed.
Also according to Ms. Lieu, the unit currently has the resources ready to receive large orders. “UncleI am always in a ready state of mind. UncleWe reserve raw materials, personnel and production facilities so that when the crisis is over, everything will be ready to receive large orders and especially urgent orders.", Ms. Lieu said.
Mr. Nguyen Phuong – Director MissMinh Thanh Co., Ltd. also said that wood export orders are coming back, but the number of orders is no longer as large as before, and delivery time has been shortened from 70-90 days to 45-60 days. day.
“Requirements for the MissAt this time, the company must change in the direction of investing in more versatile machinery to streamline production. Therefore, businesses look for many replacement machines Missinterruption in production, cost savings, good prices and on-time delivery to customers", Mr. Nguyen Phuong commented.
Mr. Tran Anh Vu, Vice Chairman of Binh Duong Province Wood Processing Association, said that in parallel with finding product lines to serve niche markets, businesses are also gradually becoming more proactive in finding new orders. .
Many businesses have boldly restructured their factories, cut unnecessary costs and improved productivity. From there, factories can produce products with more competitive prices to increase their ability to attract and receive more orders from old customers.
Many businesses believe that normally the bottom cycle of the wood industry lasts about 6 months - 1 year, so it is forecasted that after Despite gloomy times, the export of wood and wood products will likely recover in the fourth quarter of 2023 and 2024. In fact, there are currently some more optimistic signals with the 2024 order situation of businesses. .
Aiming for specific wood products
According to Ms. Cao Thi Cam, representative of the Vietnam Timber and Forest Products Association, although wood exports decreased sharply in the first half of 2023, among products, there are still growing groups. Typically, fiber board products have an export turnover to India of nearly 32 million USD, an increase of 3 times compared to the same period last year.
With wood chip products, in the first half of 2023, wood chip exports reached a turnover of more than 1 billion USD, an increase of 3% compared to the same period in 2022. In particular, China and Japan are still the two main markets consuming wood chips. exported from Vietnam; Of which, exports to China accounted for over 70%.
The Vietnam Timber and Forest Products Association also said that it is expected that in the near future, demand for pellets in the Korean market will increase again with consumption of 100,000 tons/month. In Japan, Vietnamese businesses have signed long-term contracts of 2-3 years to supply tablets. It can be seen that the two large import markets of Vietnam's pellets, Korea and Japan, (accounting for 98% of total volume) are showing good signs.
With the European market, this market is gradually stabilizing after fever for energy sources, including biomass fuel. However, with these commit Sharply reducing emissions and increasing the use of bioenergy, pellet exports will recover in both price and volume from the last months of 2023. This is a good sign for Vietnam's wood industry. At the same time, many businesses are also looking for separate directions to find new customers for the next stage of the wood industry to cope with current difficulties.
Mr. Patrick Mui, Managing Director of Centdegrés Vietnam, assessed that the wooden furniture market in the European market is considered a niche market expected to grow by 4,27%/year for the period 2023-2026, until 2026. by 2026 it can reach 7.05 billion USD. The more indigenous and unique interior decoration items are, the more niche markets Vietnamese small and medium enterprises will have, targeting certain customers in the European market.
The wood export market is showing positive signs. However, according to Ms. Le Hai Lieu, all markets currently require designs to continuously innovate materials. For example, sometimes rubber or rice wood must be made from Melaleuca wood or other types of wood, and combined with other materials. It must be done so that the product must always be diverse and rich, it must have something different than before. “For example, just a round or rectangular cutting board, as long as it can be cut and sliced. But at Virtue There are hundreds of types of cutting boards, designs, and units; if you include thickness, width, and length, there can be thousands of different types. If you don't have anything new, if you don't have anything good, it's very difficult for you to survive." Ms. Le Hai Lieu emphasized.
In general, the global wood market demand increases every year from 7-81TP3M, meaning we still have a lot of room and opportunities for future development. Therefore, experts believe that the current difficulties are only temporary, due to general market difficulties. The market may warm up when inflation is controlled and market demand warms again.
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