HANOI, May 23 (Xinhua) — Vietnam’s exports of wooden and wooden merchandise within the first 4 months this 12 months fell greater than 30 % to three.9 billion U.S. {dollars} from a 12 months in the past on account of a hunch in world demand, the Vietnam News reported on Tuesday.
Local wooden manufacturing exercise slid right into a downward spiral as new orders have dropped between 50 % and 60 % for the reason that starting of the 12 months, the report mentioned.
Vietnamese producers are having few export orders left, solely till the center of the 12 months, and most of them are small, mentioned Do Xuan Lap, chairman of the Vietnam Timber and Forest Products Association, including patrons, particularly these within the United States, have shunned inserting new orders on excessive stockpiles.
Vietnam’s exports of wooden merchandise to key markets of the United States, Japan, South Korea, and China fell sharply throughout the January-April interval.
Exports to the United States slumped 38 % to 2.02 billion {dollars} for the interval over a 12 months earlier, shipments to South Korea tumbled 22 % to 274 million {dollars}, and exports to Japan fell 1.5 % to 556 million {dollars}.
Industry consultants attributed the slowdown in exports of wooden and wood items to rising inflation in main markets, leading to sluggish demand.
“The ongoing global economic uncertainty is very hard to predict,” mentioned Nguyen Liem, chairman of the Binh Duong Woodworking Association. “The market is not sending positive signals, thus it is hard for wood companies to draw up their business plans.”
He added that native producers have slashed their manufacturing capability by 60 % amid the present downturn.
The export market is forecast to remain flat till the top of 2024 with a light restoration anticipated solely across the starting of the 12 months, Liem mentioned.
Last 12 months, Vietnam earned over 16 billion {dollars} from exporting wooden and wooden merchandise, 3.8 % above the goal, in keeping with the affiliation, regardless of excessive inflation, rising enter prices, and log-jammed provide chains.
The nation expects exports of wooden and wooden merchandise to develop 7-9 % this 12 months to 18 billion {dollars} with a give attention to wooden pellets and woodchip which is forecast to achieve 1 billion {dollars}.