Although there are still many difficulties, the current wood production industry has shown signs of improvement. Forecasts show that by the middle of this year, along with the prospect of a global economic recovery, wood production will gradually stabilize again.
Produced at a wood processing enterprise in Bien Hoa
In the context of slow domestic consumption and slow export, many enterprises have made efforts to renew themselves, seek new markets as well as expand more in the domestic segment.
Starting to have a positive outlook
According to wood industry enterprises, compared to the end of 2022, now, orders for the export wood industry have begun to have certain prosperity. This is because last year, the source of wooden furniture was in large inventory, so large importers almost did not import goods to focus on finding solutions to sell out. Currently, the previous inventory has basically been sold out, so importers are also starting to import goods again.
Besides, shipping fees in the world are falling sharply, which is also a driving force to promote better furniture exports. Previously, a wooden container (40 feet) shipped from Vietnam to the US had a very high fee from 20,000 to 22,000 USD, now it is reduced to 1.6 to 1.7 thousand USD. The reduction of international sea freight rates helps businesses to be bolder in finding markets instead of shrinking to preserve capital.
In addition, when facing difficulties in key markets such as Europe and the US, wood industry enterprises strive to find orders from the markets of Korea, Japan, Southeast Asia and find short-term opportunities in Vietnam domestic market. Some enterprises have also increased the export of wood pellets for fuel in the context of the world's lack of energy supply due to conflicts and wars.
Chairman of the Vietnam Timber and Forest Products Association Do Xuan Lap said that in the first quarter of 2023, the wood market was still under pressure. In the second quarter, it is expected that basic orders will be restored to about 82-85%. This is considered the starting point of the new year. In 2023, the wood industry is expected to achieve a growth rate of 7-9%, equivalent to 18 billion USD or more.
Production strategy must be renewed
According to wood-making enterprises for export and domestic consumption, although there are still many difficulties, it is not without opportunities for development. It is important for businesses to make efforts to turn the situation around, instead of making traditional, low-value products, they need to consider higher-end products. Although sales orders may not be the same as before, the value brought will be higher.
Caring for products, aiming at the quality segment is also the solution that Ms. Nguyen Thi Vinh, owner of Xuan Bac furniture brand (Bien Hoa City) is implementing. This brand has just opened a large showroom in front of Hanoi Highway to introduce and promote wooden furniture products to customers. Focusing on the domestic market, especially those with high incomes with large orders, this year, Xuan Bac furniture's goal is to supply products to 3,000 customers with main products are furniture.
Besides improving quality, enterprises also restructure their models. Currently, the export of wooden products requires very high origin raw materials, especially large customers, developed countries. The direct import of wood materials to supply manufacturers is a direction and also an opportunity for restructuring in a difficult situation.