Tiếng ViệtIn the dynamic landscape of the Vietnam wood industry, the year 2024 brings both ambitious goals and formidable challenges. Despite aiming for a significant surge in export value, the sector grapples with various obstacles, including market dynamics, regulatory changes, and sustainability concerns.
Ambitious Export Goals:
The agricultural sector targets a robust export value of $17.5 billion for forestry products in 2024, aiming to surpass the 2023 projections by 21% and outperform the 2022 outcomes by 3%.
This, however, poses a complex task due to the prevailing challenges within the forestry industry.
Export setbacks in 2023:
Highlighting the hurdles, the Ministry of Agriculture and Rural Development’s data reveals that the 2023 export plan of $16–17 billion fell short, reaching only nearly $14 billion by December.
This downturn marks the first decline in export targets for the forestry sector in two decades.
Strategic Goals for 2024:
Mr. Trieu Van Luc, Deputy Director of the Forestry Department, emphasizes the sector’s aims for 2024, focusing on maintaining a stable nationwide forest coverage rate of 42.02%, achieving 5–5.5% growth in forestry production value, and concentrating on afforestation, with a target of 245,000 hectares.
Industry Challenges in 2024:
Despite signs of recovery, Mr. Do Xuan Lap, Chairman of Viforest, highlights that the wood industry still faces various obstacles, estimating sluggish growth of 10–12% compared to the late quarters of 2023.
Contemporary challenges include market output issues and sustainability concerns, such as the EU’s anti-deforestation regulations.
EU Regulations and Market Dynamics:
The EU, a significant market for the Vietnam wood industry, has implemented the Anti-Deforestation Regulation (EUDR) from June 2023, emphasizing the need for legal and non-deforestation-contributing wood products.
This adds complexity to the industry’s operations, particularly for companies exporting to the EU.
Global Market Dynamics:
Beyond the EU, the US market, the largest for the Vietnam wood industry, is also introducing protective trade measures, while the global timber trade is predicted to grow at 7% per year, reaching $960 billion by 2030.
Optimism Amidst Challenges:
Despite the challenges, Mr. Ngo Sy Hoai, Vice Chairman of Viforest, remains optimistic, highlighting the industry’s growth potential.
He recommends companies upgrade technology, adapt designs, and focus on quality, urging them to explore new markets, including the Middle East and Africa.
In conclusion, while challenges loom large, the Vietnam wood industry can navigate the complexities of 2024 by embracing technological advancements, adapting to market dynamics, and capitalizing on emerging opportunities in diverse global markets. By doing so, the industry can overcome obstacles and continue on a trajectory of sustainable growth.
Source: Goviet.org.vn
