Vietnam’s export revenue of wood and wooden furniture is estimated at $13.5 billion in 2023, down 15.5 per cent year-on-year, according to President of the Vietnam Timber and Forest Product Association (VIFOREST) Do Xuan Lap.

Export value reached $12.1 billion in the first eleven months of the year, he told a workshop held on December 21 to discuss sustainable development in the wood industry and the challenges it faces.

Mr. To Xuan Phuc, Managing Director of the Forest Trends’ Forest Policy, Trade and Finance Initiative, said 2023 was a difficult year for wood businesses. A sharp decline in consumer demand in key export markets such as the US and the EU resulted in a significant reduction in orders. Many businesses have been compelled to scale back production, and some even faced the risk of closure.

Mr. Lap noted that the market has shown signs of recovery but 2024 is forecast to continue to see a number of difficulties.

Major export markets are increasingly enforcing stricter regulations on the legality and sustainability of products. Specifically, the EU Timber Regulation (EUTR), effective from late June, stipulates that products imported into the market must ensure legality and not cause deforestation.

In both domestic and foreign markets, there is a growing demand for low carbon emissions throughout the supply chain to achieve net-zero goals. Products with high carbon content will face diminished competitiveness in the market, he said.

The US remains the largest market for Vietnam’s timber industry, with export turnover of more than $5.7 billion in the first ten months of the year. It was followed by China and Japan.