Vietnam wood exports poised to hit US$12 billion mark ahead in 2020
Vietnam’s wood exports are predicted to reach US$12 billion during the course of 2020 following the wood processing industry’s great success during 2019, according to the Ministry of Industry and Trade.
October last year saw the country’s export turnover of wood and wooden products exceed US$1 billion for the first time. By mid-November, the export value of the products had begun to outstrip 2018’s record figure of US$8.907 billion before breaking the US$9 billion mark for the first time by the end of November.
Mid-December saw the export turnover of wood and wood products reach approximately US$10 billion with the year’s final figure projected to surpass the US$10 billion mark for the first time.
The Ministry of Industry and Trade noted that the wood industry is likely to achieve the export target of US$12 billion during the course of 2020.
Aside from the largest market being the United States, exports of wood and wood products are expected to enjoy substantial growth in a number of important markets globally, including Japan, the United Kingdom, Canada, Germany, and the Netherlands.
The robust growth can be attributed to the fact that Japan and Canada are member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has helped domestic firms take full advantage of the trade deal’s reduced tariffs and make greater inroads into these markets.
At present, the European Union (EU) represents one of the main export markets for the nation’s wood and wooden products. With the EU-Vietnam Free Trade Agreement (EVFTA) poised to be approved and take effect, the country’s wood products are set to become more competitive as a result of the reduction in tariff barriers in line with the roadmap. VOV
Vietnam’s wood exports this year are set to reach up to US$11.5 billion, exceeding the industry’s own target of $10.5 billion, a 20 per cent increase compared to last year, according to the Vietnam Timber and Forest Product Association.
Foreign direct investment in the wood processing industry has increased rapidly, especially since 2018, the Viet Nam Timber and Forest Product Association has said.