Vietnamese Wood Industry Set to Grow Buoyed by FTAs

Mar 2022

Recovering from the negative economic impact of the Covid-19 pandemic, Vietnam’s exports of timber and non-timber forest products were estimated to have reached a value of USD 15.6 billion in 2021, an increase of 18% compared to 2020. Today, the Southeast Asian country sells timber and forest products to over 140 countries, with the US, Japan, China, the EU and South Korea accounting as the leading markets.

Experts predict that in 2022 Vietnam’s exports of wood will grow by 20% in value compared to 2021 as a consequence of improved market access granted by recently signed FTAs such as the EU-Vietnam Free Trade Agreement, the UK-Vietnam Free Trade Agreement (UKVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes countries such as Australia, Canada, Japan, and New Zealand.

The Vietnam Timber and Forest Products Association recently revealed that in 2021 export of wooden furniture to the UK sharply increased, especially products for living rooms and dining rooms. However, Vietnamese wood products account for just 1% of the UK’s total imports, highlighting considerable room for further growth. Exports to the US also performed particularly well, with the value of Vietnamese timber and wood products in 2021 reaching USD 8.7 billion, an increase of over 20% compared to 2020.

(Sources: Asia News Network; VietnamPlus)

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