Vietnam sees prospects to sharply boost export timber to Canada

Wood furniture imported from Vietnam soared strongly in the first 7 months this year, made the country becoming the second biggest supplier in Canada.

“Canada imported wood furniture with the value of US$ 1.49 billion in the first 7 months this year, an increase of 52.7% as of 2020”, says Statistics Canada.

In the same period, the three biggest suppliers of wood furniture for Canada were China, Vietnam, and the US. China was the biggest, with the export turnover in the first 7 months this year reached US$ 551.8 million, an increase of 65.3% as of 2020. The proportion of China’s wood furniture accounted for 37% of the total import value of Canada.

The import turnover from Vietnam reached US$ 262.3 million, an increase of 70.1% over the same period last year, and accounted for 17.6% of the total import value of Canada.

The import turnover from the US reached US$ 224.9 million, an increase of 20.4% over the same period last year, and accounted for 15.1% of the total import value of Canada.

According to the Vietnam’s Association of Forestry and Wood (VIFOREST), in the first 7 months this year, wood furniture was the major product of all wooden products and timber exported to Canada, with the proportion accounted for 90.2% of the total turnover.

Canada is now one of the biggest markets for timber industry of Vietnam, at the sixth place in the first 8 months this year. There are many export prospects to Canada for wood furniture in specific and wood products in general in the coming years. Canada has a high consuming demand, and the signed agreements like Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) made it much more positive.

“Canada's home furniture market is forecasted to grow at an average rate of 6% between 2021 and 2025,” says marketinginsightsreports.com. The growth is driven by the improvement of Canada's home market and construction sector across the country. People moving to new homes help boosting the consuming of wood furniture.

Canada used to rank among the Top 10 largest furniture manufacturing markets in the world and the country has a long history of expertise in this field. However, in recent years, due to rapidly increasing imports and declining exports, Canada has become a net import country of furniture products. And Vietnam is one of the important suppliers of Canada.

“Wood industry businesses need to be keen on the trends of Canadian consumers to boost exports in the coming time,” says VIFOREST. Among the trends, compact, multi-purpose, and eco-friendly furniture are important factors. Spending is increasing for home furniture products, and bedroom, living room and dining room furniture making up the majority.

Canadians prefer products that are durable and long-lasting, so there is an increasing demand for high-end furniture. In the country, wood is one of the materials widely used to produce furniture, accounting for over 30% of the used materials. Canadian wood species such as Western Hemlock, Western Red Cedar, Douglas Fir and Spruce-Pine-Fir offer high flexibility, high durability suitable for producing high quality furniture.

According to statistics from the General Administration of Customs of Vietnam, Vietnam's exports of timber and wood products reached US$ 9.58 billion in the first 7 months this year, an increase of 55% as of 2020, of which wood product exports reached US$ 7.44 billion, an increase of 64%. Vietnam's wood manufacturing and export industry is showing vigorous development, despite many difficulties.