The focus of Vietnam’s timber industry is shifting, and China’s competitive pressure may increase
Previously, against the backdrop of rapid global market expansion, the Vietnamese timber industry maintained a double-digit export growth rate with high production capacity and cost-effectiveness. However, under the impact of the epidemic and global inflation, the weaknesses of Vietnam’s timber industry have also been exposed this year: most companies only focus on manufacturing and lack attention to trade promotion.
To promote the sustainable development of local timber enterprises, Vietnam is planning to strengthen cooperation between enterprises and associations, ministries, central institutions, and local authorities, and organize world-class expositions and exhibitions in Vietnam to enhance the status of the industry.
It is reported that with the help of the Comprehensive and Progressive Agreement on the Trans Pacific Partnership (CPTPP), Canadian companies have gained a deeper understanding of Vietnam’s production capacity. In March of this year, a large container ship route from coastal defense to Vancouver was opened between the two countries, reducing transit time to 17 days and reducing transportation costs for Vietnamese exporters.
According to data from the General Administration of Customs of Vietnam, although Vietnam accounted for only 15% of Canada’s imports last year, it remains the fourth largest supplier of wooden furniture in the country. The Vietnam Wood and Forest Products Association evaluates that there are still significant opportunities for Vietnamese wood furniture to expand its market share in Canada. The Vietnamese Trade Office in Canada has also stated that it will focus on carrying out a series of important trade promotion activities in the future.
The Canadian market is only one of Vietnam’s goals, and from a long-term perspective, it is necessary for Vietnam to improve its product development and market research capabilities. Compared with wood processing products of assembly line, building a national brand of Vietnamese wood and forestry products is the direction of sustainable development of Vietnamese wood industry. We look forward to opening the Vietnam Pavilion at international and reputable events in key and potential markets such as China, the United States, the European Union, Russia, Japan, and the Republic of Korea in the future
Although China and Vietnam have maintained good timber trade cooperation, it is expected that products from Vietnam will increase competitive pressure on China in the future global market. However, for Chinese timber merchants, the current focus is still on the domestic market, and the situation may change after demand recovers.
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