The director of a woodwork export company in Binh Duong said the company had very few orders in the first months of the year, and he had to lay off many workers. However, the situation got better in the beginning of the third quarter and the company has new orders.

The number of orders is much lower than that in the golden days, but equal to 70-80 percent of that of the same period last year.

“This is good news, allowing us to maintain production in the last months of the year and early next year,” the director said, adding that two thirds of workers who left temporarily have come back.

Le Van Luong, CEO of Dai Thanh Furniture, confirmed that the situation is getting better. He is optimistic as clients have come back.

“Orders are coming, but the number is still small. Importers have set stricter requirements on shortening delivery time and changing designs,” said Le Minh Thien, chair of the Binh Dinh Timber and Forestry Products Association.

Nguyen Chanh Phuong, Vice Chairman of HCM City Handicraft and Wood Processing Association, said some enterprises have called suspended workers back or are recruiting more workers.

He cited a report as saying that the volume of wood that enterprises have imported in recent months has increased by 5-10 percent, a sign showing that enterprises have taken orders and prepared for the year-end production season.

The General Department of Customs (GDC) reported that woodwork exports in October brought revenue of $1.2 billion, up 5.7 percent over the month before, but down 0.9 percent over October 2022.

The accumulated woodwork export turnover had reached $10.8 billion by the end of October. The figure represented a decrease of 19.9 percent in comparison with the same period last year, but this was still considered an ‘encouraging result’. Woodwork was the only field in the agriculture sector that had export turnover of over $10 billion. 

The US and Asia are the major markets for Vietnam’s woodwork exports, which consume 56.4 percent and 37.2 percent, respectively, of the total export turnover of the industry.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien predicted that Vietnam would export $13.6-14 billion worth of woodwork this year, making a big contribution to implementing A plan on obtaining $53-66 billion worth of agricultural products this year.

Tien said half of the VND15 trillion credit package, which aims to support forestry and seafood companies, has been disbursed.

Tuan Nguyen