Recently, Đỗ Xuan Lập, Chairman of the Vietnam Timber and Forest Products Association (VIFOREST), gave a speech on the sustainable development and challenges of the timber industry at the end of this year at a seminar on the sustainable development and challenges of the timber industry held by VIFOREST together with multiple associations and member organizations and Forest Trends in Hanoi, Vietnam. Forecasts were made for the country's timber and wooden furniture exports for one quarter and next year.
VIFOREST said that this year is a challenging year for Vietnam's home furnishing industry. Consumer demand in major export markets such as the United States and the European Union has fallen sharply, leading to reduced orders. Many companies have had to lay off workers and reduce production, and some have even suspended operations.
Therefore, according to Lập, Vietnam's timber and wooden furniture exports will only reach approximately US$13.5 billion in 2023, a year-on-year decrease of 15.5%.
According to preliminary statistics recently released by Vietnam's General Administration of Customs, in the first 11 months, the country's exports of wood and wooden furniture are expected to be only US$12.2 billion, a 17% decrease from the same period in 2022. Among them, the export value of wood furniture is expected to be US$8.3 billion, a 19% decrease from the same period in 2022. According to data released by the General Bureau of Statistics of Vietnam on December 29, Vietnam's overall exports in 2023 fell by 4.4% year-on-year, and exports from January to November fell by 5.9% year-on-year.
Vietnam's wooden furniture export volume ranks first in Southeast Asia, second in Asia, and fourth in the world. In terms of exports to the United States, Vietnam once surpassed China to rank first. However, in 2023, Vietnam's furniture exports suffered a substantial decline for the first time in many years of rapid growth.
Nguyễn Liêm, chairman of the Bình Dương Furniture Association and founder of Lam Việt Furniture Company, said: "In the third and fourth quarters of this year, export orders increased due to the reduction of furniture inventories in the United States and the recovery of demand in the European Union during the Christmas and New Year holidays. But in 2024 The export situation in 2017 is still not optimistic."
Nguyễn Chánh Phương, vice chairman and secretary-general of the Ho Chi Minh City Handicraft and Timber Industry Association, also said that the export orders of enterprises have gradually recovered and a large number of job recruitments have been reopened. Some of these companies have begun purchasing raw materials and preparing for production to meet demand during the peak season next year.
He said that the possibility of a recovery in furniture exports will depend on the peak exhibition season from March to April 2024, and is expected to see a slight increase.
Vietnamese media said that at present, the purchasing power of wooden furniture in the global market has not yet shown signs of rapid recovery, especially in the US market. In the past, more than 50% of Vietnam's wooden furniture was exported to the US. The order levels of most wood processing companies in Vietnam are already considerable, but they still face many variables. Furniture exports are likely to grow next year, but the magnitude will be smaller.