return icon Vietnamnet.vn

Vietnam's woodwork industry expects minus growth rate for 2020

The woodwork industry is experiencing many hardships with 80 percent of orders postponed in April.

Vietnam’s woodwork companies could not export last month as large markets have become frozen. The Vietnam Timber and Forest Product Association (Vifores) predicted that woodwork exports may have zero percent or minus growth rate this year.

 

 

{keywords}

 



A survey of 124 woodwork enterprises in March found that 100 percent of them have been hit by the epidemic. At least 75 percent of enterprises reported initial losses of VND3.066 trillion.

More than half of the surveyed enterprises said they have to scale down production, 35 percent still keep operation but may have to suspend production in the time to come, 7 percent have halted operation, and only 7 percent still operate normally.

This is because the epidemic is attacking nearly all of Vietnam’s important export markets, including the US which consumes 50 percent of Vietnam’s exports, and the EU which consumes 10 percent. There are signs of the epidemic returning to Japan which uses 13 percent of Vietnam’s exports.

China, the third largest export market of Vietnam, accounts for 12 percent Vietnam’s export turnover. However, experts said it will take time to restore the purchasing power and supply chain.

China, the third largest export market of Vietnam, accounts for 12 percent Vietnam’s export turnover. However, experts said it will take time to restore the purchasing power and supply chain.

Exported timber and forest products is one of the key industries of Vietnam with expected export turnover of $12 billion in 2020. However, Covid-19 may dash those hopes.

“To date, nearly all large markets have become frozen,” said Dien Quang Hiep, chair of the Binh Duong provincial Timber and Forest Production Association.

“The US and EU are completely frozen. There are still sporadic orders from Japan and South Korea. China has reopened its market but it will take a long time to return to normal,” he said.

An internal report delivered among timber associations on March 30 showed Vifores’ estimates that 80 percent of buyers from the US and EU have postponed or canceled orders.

According to Vu Hai Bang, CEO of Woodsland, one of the biggest exporters with 3,000 workers and revenue of $60 million in 2019 from the US and EU, consumer stores in major markets have closed. The buyers of Woodsland have postponed orders.

“Things happened quickly, just within two weeks,” Bang said.

Nguyen Duc Kien, deputy general director of Ke Go Co Ltd, which mostly exports plywood to South Korea and Japan, said his company can export five containers a month now, just 1/10 of the export volume before the epidemic. 

Mai Lan

 

Vietnamese woodwork industry: the path to $20 billion goal

Vietnamese woodwork industry: the path to $20 billion goal

More and more foreign invested enterprises (FIEs) in Vietnam have begun exporting woodwork products as Vietnamese enterprises increasingly lose market share.

Supply chain interrupted, VN woodwork processors go online

Supply chain interrupted, VN woodwork processors go online

E-commerce is one of the best solutions for woodwork enterprises to cope with the Covid-19 epidemic, which has led to a sharp fall in demand.

MORE NEWS

Use of e-cigarettes by youth rockets with easy availability at shops

Many students and young people have been hospitalized in a deep coma after using e-cigarettes, which are easy to buy.

How will telecom carriers fare in a highly competitive market?

The traditional telecom market is getting saturated and facing upheavals, including a drop in revenue from traditional calls and SMS, a tighter management policy and changes in technology.

Number of international visitors to Vietnam sets 'record' after pandemic

Vietnam welcomed 2.95 million foreign visitors in January-November 2022, 21.1 times up year on year, but still down 81.9% compared with pre-pandemic levels in 2019.

Su-30MK2, Mi helicopters rehearse in Hanoi

On December 2, Su-30MK2 fighters performed in a rehearsal to prepare for the upcoming Vietnam International Defense Exhibition 2022.

Vietnam sends condolences over passing of former Chinese leader Jiang Zemin

Vietnamese leaders on December 2 cabled messages of condolences to Chinese leaders over the death of former General Secretary of the Communist Party of China (CPC) Central Committee and former President of China Jiang Zemin.

Ministry proposes canceling funding plans over disbursement delays

Disbursements of public funds sourced from foreign loans in the year through November had moved at a snail’s pace, reaching only slightly more than 25% of the full-year plan.

Hanoi to pilot bike rental service in six urban districts

Hanoi has approved a year-long pilot bike rental service programme in Hoan Kiem, Tay Ho, Dong Da, Ba Dinh, Hai Ba Trung, and Thanh Xuan districts.

Weightlifters hope for Olympic qualification from world championship

It was scheduled to be held in Chongqing, China, but this changed in March due to COVID-19 measures in China. The new location was announced in April.

Striker Nguyen Van Quyet named best player of 2022 V.League 1

Striker Nguyen Van Quyet received a statue for the most valuable player of the 2022 V.League 1 season at a V.League Awards ceremony organised on December 1 in Hanoi.

Meteor shower to light up Vietnamese skies on December 13

Local sky gazers will have a rare opportunity to witness the peak of the Geminids meteor shower, with the astronomical event set to occur between midnight on December 13 and the morning of December 14.

Da Nang wins Best Vietnam Smart City Award for third time

The central city of Da Nang has been granted the Best Vietnam Smart City Award 2022, the third time so far.

Newly-established, re-operating enterprises up over 33% in 11 months

Vietnam saw nearly 194,700 newly established and re-operating enterprises in the first 11 months of 2022, up 33.2% over the same period in 2021, a 1.3 times higher than the average rate in January – November period from 2017 - 2021.

Politburo members discuss review of resolution on HCM City development

Party General Secretary Nguyen Phu Trong on December 2 chaired a Politburo meeting on a project to review the 10-year implementation of a resolution on the orientations and tasks for the development of HCMC until 2020 and 2030, with a vision to 2050.

Exporters face tax unless they cut greenhouse gas emissions

Exports to the EU market will become more expensive unless enterprises implement greenhouse gas emission cuts. This will affect the competitiveness of many Vietnamese export companies.

Some of the best fishing lakes in and around Hanoi

Here are some of the most popular fishing lakes near Hanoi. On weekends, the number of people flocking to commercial centres, pedestrian streets or entertainment areas in the inner city of Hanoi has increased.
back_to_top