According to the Ministry of Agriculture and Rural Development (MARD), the value of wood and wood product exports in 1H23 was just $6 billion, a 28.8% decrease from the same period the previous year.

Wood and wood product exports totaled approximately $1.1 billion in July 2023, bringing the total for the first seven months to $7.1 billion, a 25% decrease from the previous year. However, export data for July 2023 were virtually equivalent to those for July 2022, showing that the wood export market is recovering.

During the first half of this year, wood exports dropped, leaving many firms with a 20% to 50% deficit of export orders. However, firms have begun to get fresh orders at this time.

Foreign clients are looking for Vietnamese imports, according to Mr. Tran Lam Son, Deputy General Director of Thiên Minh Wood Company. The market in the United States is gradually warming up, inventory has been spent, and consumer patterns are growing once again. These indicators suggest that the market is progressively rebounding.

Mr. Huynh Quang Thanh, Director of Hiep Long Co., Ltd., anticipates that the situation will return to normal in 3Q23, but that achieving the same number of orders as in 2022 would be tough. Companies with bigger markets, particularly those pursuing specialty areas, will fare better.

Mr. Ly Vinh Hung, Director of Lyprodan Furniture Company, believes the market has reached bottom and will gradually increase in accordance with the law of recovery. As a result, he expects wood and wood product exports to rise in 2024, although the rate of recovery remains unknown. The firm has already received several orders for the upcoming season and has received requests for bids with accessible examples.

"Based on conversations with a few customers, the situation for 2024 orders appears to be quite feasible, which is good news for the wood industry." "It's possible that wood exports will recover by 2024," Mr. Ly Vinh Hung said.

With encouraging signs in July, the wood sector is optimistic that the final five months of the year will see increase, allowing total annual export income to be on level with the previous year. However, difficulties remain. Short-term orders and smaller-scale productions make long-term planning difficult and necessitate swift adjustment.

"We cannot plan for the long term, we can only plan for three months," says Mr. Nguyen Van Sang, CEO of Furnist Interior and Exterior Furniture. Hopefully, growth will resume by the end of the year or in January 2024."

Furthermore, experts advise enterprises to enhance product offerings with competitive designs and costs. "Buyers want businesses to place proactive design orders." This is something that Vietnamese businesses have been working on for many years, but it is also a difficulty that they must overcome. Companies who can accomplish this will have a competitive edge in terms of delivery and cost," said Mr. Nguyen Chanh Phuong, Vice Chairman of the HCM City Handicraft and Wood Processing Association.

In actuality, wood is a key export business that contributes considerably to Vietnam's trade turnover, with yearly exports reaching about $15 billion. Because the US market accounts for 60-65% of total wood export turnover, any measures made by this market have a considerable influence on the Vietnamese wood sector.

The final finding for the examination of anti-dumping and countervailing charges on imported hardwood plywood from Vietnam was announced by the US Department of Commerce (DOC) on July 17, 2023. The DOC examined three of five production scenarios for anti-dumping and countervailing duty avoidance. Separate face and core veneers produced in China and assembled into hardwood plywood in Vietnam are considered to be in violation of the duties, as are separate core veneers produced in China and processed into a core veneer in Vietnam, combined with a face and/or back veneer produced in Vietnam or another third country.

The DOC will impose a deposit rate based on unfavorable facts available (AFA) for 37 Vietnamese wood exporting enterprises. The preliminary rates for anti-dumping duties (AD) are 183.36% and 22.98% for countervailing duties (CVD). These businesses will also be denied the ability to self-certify.

An An Plywood Company and Greatwood Hung Yen Company were removed from the list of 22 enterprises that did not reply to the questionnaire by the DOC. Four firms were also recognized as cooperators in the preliminary assessment.