Timber and wood products industry: trade facilitation at its core

According to the Ho Chi Minh City Art and Woodworking Association (HAWA), the wood industry has not been seriously affected by the COVID-19 pandemic so far, with Vietnam's exports in the first two months still reaching US$15.3 billion, a year-on-year increase of 10.1%.

Wood companies believe that exports will increase by 20% in 2020. Many companies believe that despite the impact of the US-China trade, the wood industry still grew by 22%, with exports reaching US$11.2 billion. In 2020, although the world economy was severely affected by the COVID-19 pandemic, the wood and wood products industry was the industry that benefited the most.

Tian Guangxia, president of the Binh Duong Province Wood Processing Association, said that in order to prevent the spread of the epidemic, many factories in China have suspended operations, so orders for wood products have flocked to other countries including Vietnam. It is expected that the growth rate of Vietnam's wood and wood products industry this year can reach 20%.

Many opinions believe that the reason why the wood and wood products industry has not been affected by the COVID-19 pandemic is that the industry does not rely on raw materials from China.

Tian Guangxia, chairman of Saigon Trade and Production Development Joint Stock Company, said that the supply of wood raw materials mainly comes from domestic sources and from the United States, Canada and African countries. The main markets for Vietnamese wood products are Europe, the United States, Japan and other countries. Vietnam's exports of wood products to China are not large. In addition, Vietnam has joined many new-generation free trade agreements, including the Vietnam-EU Free Trade Agreement, which is expected to take effect this year, which will inject momentum into the development of Vietnam's wood products industry.

It can be seen that Vietnam's wood products industry is welcoming many opportunities. Vietnam's wood and wood products industry plays an important role in the world supply chain. Recently at the Las Vegas Wood Products Show in the United States, many merchants hope to find Vietnamese supply sources to replace the Chinese market.