FDI enterprises are leading Vietnam’s wood exportation

According to the General Department of Customs, wood and wood products exports in 2020 set a new record with US$ 12.371 billion.

More than 3,600 enterprises participating in exporting wood and wood products had contributed to the mentioned export turnover record. However, most of them are SMEs. The number of enterprises with high value of wood exports only accounts for a small proportion.

In particular, out of more than 3,600 enterprises participating in exporting wood and wood products by 2020, only 75 of them have an export value of over US$ 30 million per year. As a result, large timber exporters only account for about 2% of the total wood exporting enterprises.

Among the 75 enterprises mentioned above, there are 27 enterprises that have an export value of US$ 50 to 100 million, 4 of them have an export value of US$ 100 to 200 million.

There are 3 enterprises with an export value of more than US$ 200 million, which also are the 3 biggest exporters of Vietnam’s wood industry. Principally, Hoa Net Wood Industry Company Limited (Wanek Furniture Company Limited) ranked first, followed by Timberland Company Limited, and Hao Hung Company Limited ranked third.

All of the 3 leading enterprises in Vietnam’s wood export are FDI enterprises. 3 out of 4 enterprises with an export value of US$ 100 to 200 million are FDI enterprises, which are Nitori Furniture Vietnam, Shing Mark Vina Company Limited and Motomotion Vietnam Limited.

This shows that FDI enterprises are taking an important role in Vietnam’s wood industry.

As stated in the statistics of the Foreign Investment Department (Ministry of Planning and Investment), by the end of 2019, the total amount of FDI enterprises working in Vietnam’s wood industry are 966, up 11.4% compared to the amount of FDI enterprises in 2018. The total registered investment capital of businesses in this sector reached US$ 6.3 billion by the end of 2019, an increase of 13.2% compared to the total registered capital at the end of 2018.

In 2020, the export turnover of wood and wood products of FDI enterprises reached US$ 6.105 billion, up to 29.63% over 2019, higher than the general growth rate of Vietnam's wood and wood products exports.

FDI enterprises occupy 49.35% of the total export turnover of wood and wood products; which is an increase compared to the 42.23% rate in 2019. Notably, the export turnover of wood products reached US$ 5.661 billion, up to 30.8% compared to 2019; accounting for 92.72% of the total export turnover of wood and wood products of the whole FDI sector.