The export value of Vietnamese wood products could exceed $15 billion in 2024, up 6% year-on-year, despite the difficulties facing the world market, said Nguyen Quoc Tri, Deputy Minister of Agriculture and Rural Development.
In 2023, the country's export of wood products reached $14.47 billion, down 15.4% from 2022 and marking a record drop for the sector, official data shows.
"The fundamental reason was that consumers reduced their expenditure on non-essential items such as wood and wood products in order to offset rising prices caused by geopolitical crises," Deputy Minister Tri said at the Hawa (Handicraft and Wood Industry Association of HCMC) Expo held in Ho Chi Minh City on Wednesday.
In addition, several businesses saw value-added tax refunds delayed, making it harder for them to raise financing for manufacturing, while some wood processing companies had to reduce the scope of their output and exports, he said.
To overcome these difficulties and help businesses regain momentum for recovery and growth, the agriculture ministry has amended related policies. In particular, the ministry has accelerated the issuance of sustainable forest management certificates and planted forest regulations.
"Entering 2024, despite continuing to face many obstacles and challenges, the outlook for the wood sector is good, although it has not returned to previous levels," Tri said.
To meet the aforementioned export targets, the forestry sector must enhance its efforts and develop essential solutions in technological innovation, raw material utilization, production, and product distribution, he added.
In 2024, the forestry sector faces numerous obstacles and challenges. Vietnam's primary export markets for wood products are increasingly demanding rigorous control over legitimate wood origins.
"However, I believe that wood processing businesses will always discover effective, proactive, creative, and adaptable ways to convert disadvantages into chances and risks into possibilities," Tri noted.
Running from March 6-9 in both HCMC and Binh Dương province, the Hawa (Handicraft and Wood Industry Association of HCMC) Expo has gathered a total of 500 exhibitors, around 80% of which are Vietnamese. Hawa Expo is considered the largest export furniture fair in Vietnam and a professional business platform.