Vietnam earned $1.2 billion from exporting wood and wooden products in March, up 36.3 per cent against February but down 22.8 per cent year-on-year, figures from the General Department of Vietnam Customs show.

The March figure brought total revenue for wood and wooden product exports in the first quarter to $2.88 billion, a year-on-year fall of 28.3 per cent.

The Vietnam Timber and Forest Product Association (Vifores) said the fall was due to declines in global demand, with orders down dramatically compared with the same period of 2022.

In addition, as China is a main competitor of Vietnam in the US, the reopening of the Chinese market created difficulties for local businesses, according to Vifores.

Exports of wood and wooden products are expected to recover in the second half of 2023 when economies improve.

Wood producers are now prioritizing restructuring their production lines and investing in equipment to cut labor costs. They are also working to diversify products to meet new trends in consumption.

Many businesses are also seeking consumers in new markets such as Japan, China, and South Korea, to make up for declines in key markets.