Wood exports fell sharply, businesses found orders through fairs

Sharp decline in exports of wood and wood products

The information session about the Vietnam ASEAN International Furniture and Home Accessories Fair 2023 (VIFA ASEAN 2023) took place on the morning of May 23. Mr. Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry - Ho Chi Minh City Branch (VCCI - HCM) said that facing the difficult situation of the global economy, each month there are an average of 19,000 businesses withdraw from the market.

Data from the General Department of Customs show that the export turnover of wood and wood products is estimated at USD 1.2 billion in April 2023, up 5.5% compared to March 2023, but down 24% compared to April 2023. In which, the export turnover of wood products is approximately USD 820 million, up 6% compared to March 2023, down 28% compared to April 2022.

The sharp decline in the export of wood and wood products is due to the cost of input fuel and global energy remaining high, thus having certain impacts on the production costs of wood enterprises. The issue of inflation is still intense, and monetary policy has not been loosened.

The slow recovery of the world economy and the collapse of some banks in the world also have affected the buying trend of consumers, tightening budgets on non-essential products such as wood and wood products in some markets such as the USA and EU, causing a sharp drop in import demand.

Another problem is that wood industry enterprises still have difficulty in accessing capital, bank interest rates and input costs are still high. Many businesses are still in a shortage of orders due to weak demand from main consumption markets. Businesses have to find all solutions possible to maintain production and retain workers to wait for the situation to improve. At the current growth rate, it is forecasted that the export turnover of wood and wood products in the first half of 2023 will decrease by 28 - 32% compared to the same period in 2022.

In search of orders

According to Mr. Cao Ba Dang Khoa, Acting General Secretary of the Vietnam Coconut Association, in the face of the current difficult situation, organizing a furniture fair in Southeast Asia would help Ho Chi Minh City gain an opportunity to become a regional and international furniture center.

As one of the businesses having great success in finding orders at fairs, Mr. Cao Van Dong, General Director of Kettle Interiors Asia Co., Ltd. said that in March 2023, his business participated in VIFA EXPO 2023 in Ho Chi Minh City and obtained positive results.

“Right at the fair, we sold 24 containers of goods, earning more than USD 500,000. We also have access to 40 new customers who came to visit and contact the business," he said, adding that participating in VIFA ASEAN 2023 in August 2023 would help businesses find more potential customers.

Mr. Dang Quoc Hung, Chairman of the Board of Directors of Alliance Handicraft Wooden Fine Art Corporation, said that the Vietnam ASEAN International Furniture and Home Accessories Fair 2023 with the theme " Discover the fascination of Vietnamese furniture and handicrafts”, is expected to attract 350 domestic and international furniture and handicraft manufacturers as well as processors to participate, raising the number of booths up to 1,400.

According to Mr. Hung, the fair promises to become an important trade promotion venue of ASEAN's regional stature. The diversity and abundance of product lines displayed by enterprises from participating countries will meet all the demands of the multi-segment interior and exterior of the world market.

The Vietnam ASEAN International Furniture and Home Accessories Fair 2023 (VIFA ASEAN 2023) is held by of Alliance Handicraft Wooden Fine Art Corporation in collaboration with Vietnam Chamber of Commerce and Industry - Ho Chi Minh City Branch (VCCI - HCM). The event will take place from August 29 to September 1 at the Saigon Exhibition and Convention Center (SECC).