The value of wood and wood product exports to the U.S. has risen for the third month in a row; however, experts suggest that this only helps to mitigate the extent of the industry’s decline in shipments to the U.S.
The Ministry of Industry and Trade’s Industry and Trade Information Center (VITIC) projects that the export revenue for wooden products to the U.S. market in November 2023 amounted to 660 million USD, marking a 15.5% rise from the same month in 2022.
Looking at the overall 11 months of 2023, the anticipated export revenue for wood and wood-related items to the U.S. is expected to total 6.5 billion USD, reflecting an 18.1% decline compared to the corresponding period in 2022.
Wooden furniture leads the export turnover, amounting to 5.1 billion USD, registering a 22.8% decline compared to the same period in 2022. Following closely are wood, timber, and wooden flooring products, reaching 488.6 million USD, indicating a decrease of 23.4%.
VITIC asserts that wooden furniture plays a pivotal role in driving the industry’s export growth to the U.S., constituting 86.2% of the overall export turnover of wood and wood products to the U.S. The demand for wooden furniture in the U.S. remains robust, positioning it as the second-largest global importer and a promising market for exporting nations, including Vietnam.
Statistics from the U.S. International Trade Commission (USITC) show that in September 2023, the U.S. imported wooden furniture worth 1.56 billion USD, a 20.4% decrease compared to September 2022. For the cumulative 9 months of 2023, U.S. imports of wooden furniture reached 14.6 billion USD, a 26% decrease compared to the same period in 2022.
VITIC’s data also indicates that economic difficulties and high inflation have significantly reduced the import value of the U.S. from major supplying markets, with Vietnam leading the decline at 5.3 billion USD, a 26.3% decrease compared to the same period in 2022.
Vietnam’s exports of wood and wood products to the U.S. also experienced a sharp decline in the early months of 2023 due to weak market demand caused by high interest rates, cyclical factors, and large inventory reserves in the U.S.
However, in recent months, inventory levels have decreased significantly, indicating consumer recovery and recovering markets. U.S. buyers continue to identify Vietnam as a crucial supply source, especially as the U.S. seeks to diversify its supply chain and reduce dependence on supplies from China.
Vietnam also has the opportunity to discuss with the U.S. the possibility of applying the Generalized System of Preferences (GSP) for exported goods to the U.S., including wood and wood products.
With these positive signals, VITIC believes that the prospects for exporting wood and wood products to the U.S. will be more optimistic in 2024. However, businesses still face many challenges in exporting wood and wood products to the U.S.
Recently, the U.S. Department of Commerce (DOC) issued a draft amending regulations to strengthen trade protection measures under the U.S. Tariff Act of 1930, aiming to gather opinions from relevant parties.
In this draft, DOC proposed numerous changes to current procedures and processes, legalizing many investigative practices, and reinforcing various methods of analysis, pricing, and cost calculation.
To compete effectively, VITIC suggests that Vietnamese businesses need to improve product quality, reduce production costs, and ensure effective customer management and care.
Source: Goviet.org.vn
