HCMC – Vietnam’s wood processing industry expects to obtain US$3.9 billion in export value this year compared to US$3.4 billion in 2010 despite concerns over a slump in global demand as well as high production costs and interest rates.
Wood export expected to hit US$3.9 billion this year
By Thai Hang - The Saigon Times Daily
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| Wood export is expected to generate US$3.9 billion for Vietnam this year - Photo: Thai Hang |
HCMC – Vietnam’s wood processing industry expects to obtain US$3.9 billion in export value this year compared to US$3.4 billion in 2010 despite concerns over a slump in global demand as well as high production costs and interest rates.
According to the Ministry of Agriculture and Rural Development, wood export in the January-November period brought in an estimated US$3.5 billion, up 15% year-on-year.
Nguyen Ton Quyen, chairman of the Vietnam Timber and Forest Products Association (Vifores), expected the wood export this year might reach US$3.9 billion, US$500 million higher than last year.
The U.S. still remains Vietnam’s biggest importer, accounting for one-third of the total export value.
In January through October, Vietnam shipped furniture stateside worth over US$1 billion, overtaking China, which obtained only US$700 million in the period. In previous years, China was the biggest furniture exporter to the U.S.
Vietnam’s wood product exports to the U.S. may increase stronger in the future as there are two U.S. wood firms wanting to build plants in Vietnam, according to Vietnam Trade Office in America.
Japan is an important buyer of Vietnam’s furniture as well, with increasing demands after the earthquake and tsunami in March, said Quyen of Vifores.
Savimex Corp. recorded growth of furniture exports to Japan in three consecutive quarters this year. The firm’s export revenue from Japan rose 52% year-on-year in the third quarter.
Although the export is growing well, the largest problem of wood firms is production cost, which makes inroads into their profits, said Tran Quoc Manh, director of Sadaco Co.
Meanwhile, Vietnam’s import of logwood for domestic production in November reached US$100 million, raising the total expenditure on the material in the 11-month period to US$1.2 billion, up 16.2% year-on-year.