Source: VietnamPlus / Photo: VNA

Vietnamese wood and furniture products are expected to grow in 2022 due to the purchasing demand of the international market along with meeting necessary factors in Free Trade Agreements (FTAs). 

Despite experiencing a difficult year last year after being heavily affected by the pandemic, the country’s exports of timber and non-timber forest products in 2021 was predicted to reach 15.6 billion USD, up by 18 percent compared to 2020. In which, the exports of wood and products reached 14.5 billion USD, up by 17.2 percent compared to 2020.

Vietnam’s timber and forest products are exported to over 140 countries and territories, of which the main markets are the US, Japan, China, EU and South Korea with a total export value estimated at 13.98 billion USD, accounting for 89.5 percent of the country's export value of forest products.

The move will provide great momentum for the Vietnamese wood processing and export industry to develop with an export turnover value of 20 percent higher than that of 2021.  

The gains are attributed to the effects of FTAs such as the EU-Vietnam Free Trade Agreement, the UK-Việt Nam Free Trade Agreement (UKVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

They have created favourable conditions for the development of Vietnam’s agriculture industry bringing advantages in accessing difficult markets and enhancing competition with similar farm products of other countries. 

According to the Vietnam Timber and Forest Products Association, last year the export of wooden furniture to the UK sharply increased with products for living rooms and dining rooms. They are followed by wooden furniture for the bedroom and wooden frame chairs.

As the UK-Vietnam free trade agreement (UKVFTA) took effect in May 2021, the wood processing and exporting industry has seen high import volume in the market, reaching an export turnover of 5.24 billion USD, an increase of more than 15 percent on 2020.

The UKVFTA agreement is the driving force for Vietnamese wood processing and exporting businesses to expand the market and diversify products to offer more choices for consumers.

Ta Hoang Linh, director of the Europe-America Market Department, said that the UK was the most important partner and the sixth-largest export market for Vietnam.

However, Vietnamese products imported into this market remain modest accounting for only 1 percent of the total volume of goods imported into the UK. The UK still has a lot of room for Vietnamese farm produce, including wooden products.