- W&WP export and import
1.1. W&WP export
In the first two months of 2020, W&WP export earned USD 1.564 billion (18% over the same period of 2019). At 15th of March, 2019 W&WP export value was reported at USD 2.077 billion. The growth rate gained last year (18.5%) seemed to be maintained.
With the COVID-19 outbreak, however, W&WP export to 5 major destinations (US, EU, Japan, South Korea and China), which shared 87% of Vietnamese W&WP export last year, is expected to decline sharply in the coming 3 -4 months due to (i) closure of shopping centers, (2) limited/restricted transferring, (3) cease/pause of W&WP shipping, and (4) no new orders.
Table 1: W&WP export by top markets
| Markets | 2018 | 2019 | Jan-Feb, 2019 | Jan-Feb, 2020 | Growth rate 2019-2020 (%) |
| US | 3,613,299,019 | 5,125,856,324 | 584,824,907 | 794,798,482 | 35.9% |
| Japan | 1,119,033,609 | 1,308,214,808 | 167,495,850 | 194,778,019 | 16.3% |
| China | 1,077,017,013 | 1,227,120,281 | 162,891,393 | 184,791,148 | 13.4% |
| EU | 785,266,729 | 864,589,886 | 145,954,937 | 145,763,178 | -0.1% |
| Korea (Republic) | 938,696,858 | 801,951,523 | 134,185,443 | 115,578,552 | -13.9% |
| Australia | 174,052,808 | 138,903,321 | 19,766,545 | 18,025,356 | -8.8% |
| Canada | 155,893,908 | 186,826,071 | 22,810,104 | 29,822,662 | 30.7% |
| Hong Kong | 6,987,831 | 3,837,376 | 583,502 | 531,502 | -8.9% |
| India | 46,165,931 | 36,127,109 | 5,040,329 | 4,523,934 | -10.2% |
| Taiwan | 60,602,011 | 71,402,229 | 9,431,590 | 12,869,097 | 36.4% |
| Malaysia | 100,907,198 | 67,913,814 | 9,054,370 | 10,088,096 | 11.4% |
| Others | 398,465,751 | 497,768,232 | 59,909,572 | 52,876,979 | -12% |
| Total | 1,321,948,543 | 1,564,447,006 |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by General Department of Customs (GDC), Vietnam
During Jan-Feb, 2020 W&WP shipped to US was reported at USD 795 million sharing 51% of all export markets and increased 36% year on year over 2019.
Table 2: W&WP exported to US as the top market, Jan-Feb, 2020
| Products | Jan-Feb, 2019 (USD) | Jan-Feb, 2020 (USD) | Growth rate (%) |
| Fibre board (HS 4410) | 640,726 | 3,815,038 | 495% |
| Plywood (HS 4412) | 31,638,191 | 39,852,096 | 26% |
| Densified wood – HS 4413 | 642,318 | 2,035,269 | 217% |
| Builders joinery -HS 4418 | 11,633,588 | 19,008,088 | 63% |
| Other articles of wood -HS 4421 | 1,111,886 | 2,435,042 | 119% |
| Chair -HS 9401 | 147,086,409 | 221,131,634 | 50% |
| Office furniture – 94033 | 29,971,020 | 32,587,094 | 9% |
| Kitchen furniture – 94034 | 19,222,615 | 43,999,866 | 129% |
| Bedroom furniture – 94035 | 123,090,081 | 130,320,886 | 6% |
| Other articles of indoor furniture -94036 | 141,926,323 | 185,261,950 | 31% |
| Parts of furniture – 94039 | 71,054,556 | 105,904,387 | 49% |
| Others | 6,807,193 | 8,447,131 |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by GDC, Vietnam
In Jan-Feb, 2020, the export of many wood products remarkably increased: woodchip (+21%), veneer (+25%), particle board (+16), chair (+29%), indoor furniture (+20%). Conversely, the export of some other products reduced: wood pellet (-45%), sawn wood (-23%), fibre board (-53%), plywood (-2%).
Table 3: W&WP export Jan-Feb, 2020 by products
| Products | Jan-Feb, 2019 (USD) | Jan-Feb, 2020 (USD) | Growth rate 2019/2020 (%) |
| Woodchip | 213,709,074 | 258,753,635 | 21% |
| Wood pellet | 40,074,437 | 21,962,885 | -45% |
| Sawn wood | 7,917,346 | 6,084,286 | -23% |
| Veneer | 3,877,793 | 4,846,487 | 25% |
| Fibre board | 2,439,253 | 1,154,876 | -53% |
| Particle board | 6,856,675 | 7,987,399 | 16% |
| Plywood | 107,921,574 | 105,508,452 | -2% |
| Chair | 243,333,983 | 312,888,918 | 29% |
| Indoor furniture | 606,007,206 | 727,502,816 | 20% |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by GDC, Vietnam
1.2. W&WP import
In Jan-Feb, 2020 W&WP import accounted for USD 329.6 million, minus 14% against 2019.
The decline of W&WP import happened with (1) log/round wood (-35%), (2) sawn wood (-24%), (3) particle board (-8%), (4) plywood (-12%). On the contrary, import of slide/rotary veneer increased by 22% and 20% relatively.
Table 4: W&WP import in Jan-Feb, 2020 by products
| Products | Jan-Feb, 2019 (USD) | Jan-Feb, 2020 (USD) | Growth rate (%) |
| Round wood/log | 125,897,279 | 82,159,114 | -35% |
| Sawn wood | 149,107,938 | 113,416,514 | -24% |
| Veneer | 19,679,556 | 23,933,687 | 22% |
| Fibre board | 11,869,827 | 14,249,365 | 20% |
| Particle board | 26,362,860 | 24,148,775 | -8% |
| Plywood | 24,320,571 | 21,299,630 | -12% |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by GDC, Vietnam
In Jan-Feb, 2020, W&WP import from all top suppliers dropped greatly: African suppliers – 43%; Chile – 38%; EU – 20%, US – 8%. On the contrary, import from China and Laos increased by 43% and 16% relatively.
Table 5: W&WP, Jan-Feb, 2020 by top suppliers
| Suppliers | Jan-Feb, 2019 (USD) | Jan-Feb, 2020 (USD) | Growth rate (%) |
| Africa | 100,755,792 | 57,602,621 | -43% |
| China | 62,902,346 | 90,197,711 | 43% |
| US | 55,434,228 | 51,016,013 | -8% |
| EU | 36,244,862 | 29,052,255 | -20% |
| Cambodia | 13,635,485 | 658,807 | -95% |
| Malaysia | 13,175,739 | 10,532,664 | -20% |
| Thailand | 14,812,257 | 14,253,221 | -4% |
| Chile | 14,662,363 | 9,087,426 | -38% |
| New Zealand | 7,988,367 | 7,375,275 | -8% |
| Laos | 8,650,551 | 10,072,611 | 16% |
| Papua New Guinea | 7,275,964 | 5,481,048 | -25% |
| Canada | 5,210,528 | 2,175,708 | -58% |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by GDC, Vietnam
- US: In Jan-Feb, 2020, round wood/log import from US decreased by 45%, while sawn wood reduced by 2% comparing with that of Jan-Feb, 2019.
- EU: Import of round wood/log and sawn wood from EU declined by 16% and 25% relatively.
- Africa: Import of round wood/log from Africa diminished by 46 % and sawn wood – 36 %.
- China: Import of wooden furniture from China recorded at 248.7 % from USD 5.1 million up to USD 17.9 million.
Table 6: W&WP imported from China Jan-Feb, 2020
| Products | Jan-Feb, 2019 | Jan-Feb, 2020 | Growth rate (%) |
| Round wood/log – HS 4403 | 1,713,884 | 1,713,435 | 0.0% |
| Sawn wood – HS 4407 | 2,749,241 | 3,237,208 | 17.7% |
| Veneer – HS 4408 | 16,191,039 | 19,186,555 | 18.5% |
| Fibre board – HS 4410 | 1,629,908 | 1,583,645 | -2.8% |
| Particle board – HS 4411 | 3,204,686 | 5,168,371 | 61.3% |
| Plywood – HS 4412 | 20,590,699 | 18,225,434 | -11.5% |
| Chair – HS 9401 | 7,924,987 | 17,547,430 | 121.4% |
| Indoor furniture – HS 9403 | 5,104,312 | 17,797,674 | 248.7% |
Source: VIFOREST, FPA Bình Định, HAWA, BIFA & Forest Trends, data provided by GDC, Vietnam
1.3. FDI in wood industry sector and W&WP export/import
In 2019, there were 99 new FDI projects added to wood industry sector of Vietnam, including 56 new projects developed by Chinese investors.
1.3.1 W&WP export by FDI enterprises
In 2019, there were 663 FDI enterprises exporting W&WP from Vietnam (25% up comparing with that of 2018), and the export earning these enterprises amounted to USD 4.95 billion (48% of the total Vietnamese W&WP export revenue). The growth rate of W&WP export by FDI was equal to that of the number of newly setup enterprises (25% up).
In Jan-Feb, 2020, W&WP export by FDI was reported at USD 652 million, 9.02% up, and shared 37.9% of the total export revenue.
1.3.2 W&WP import by FDI enterprises
In the first 2 months of 2020, import spending by FDI enterprises was recorded at USD 123 million, 13.13% up against that of 2019.
- Impacts of COVID-19
Woodchip: Last year, woodchip export earned USD 1.7 billion, equal to 16% of the total export revenue. There were 3 major consumers of Vietnamese woodchip, namely China (58%), Japan (30%), South Korea (4%). As a consequent of the outbreak of COVID-19 prevailing in these 3 markets, woodchip price reduced by USD 2-3 per BDT lowering export price down to USD 127 USD/BDT. In the coming months, woodchip price is anticipated to drop by USD 3-4 per BDT due to the extanded shipment (1 month longer) resulted from strict control at both export and dilivery ports. The delayed shipment leads to added cost for transporation and logistic handling, and ultimately leads to a significult overspending that normally has to rely on commercial lowns. With the COVID-19 outbreak in China, woodchip companies have to reduce raw material purchasing price arround 10%. This gloomy situation tends to dis-incentivize farmers from commercial plantatation business and threaten to break acacia wood supply chain which has been well established in Vietnam.
Plywood: The export of Vietnamese plywood to US is facing a serious trouble associated with the fact that on March 4, 2020, the US Department of Commerce (DOC) accepted a scope ruling request from the Coalition for Fair Trade in Hardwood Plywood to determine whether certain plywood products that are assembled or completed in Vietnam are covered by the scope of the antidumping and countervailing duty orders on certain hardwood plywood products from China. With the concern that playwood made-in-Vietnam may be subjected to US antidumping and countervailing duty similar to that of China, from the beginning of March, US importers have stopped ordering plywood from Vietnam. Last year, plywood export to US market was reported at USD 309.
Other W&WPs: With the COVID-19 spreading over the world, most of orders have been paused or cancelled by trade partners from US, EU, Japan, South Korea, China etc. Consequently, most of Vietnamese wood product manufucturers have to reduce production, cut off number of employees, or just close factories activating “winter sleeping” and hope for market recovery. Maintaining the cumbersome army of labor force to avoid social unrest and be prepared to re-activate wood industry when the pandemic gets over has exposed a serious challenge for both the Government and individual manufactorers. According to Ngo Sy Hoai, Vice President and Secretary General of VIFOREST, following two decades of continued 2 digit growth rate, with 18.5% recorded in 2019, in 2020, the likelihood of non-growth or minus growth of Vietnamese W&WP export is very high.
Source: ITTO
