It is reported that after the recovery of Vietnam's timber industry, timber producers are also preparing for year-end orders, and the local area is currently importing logs at a monthly growth rate of 5-10%. Nguyen Chanh Phuong, vice chairman of HAWA, said exports in the last quarter of the year could bring in $6 billion in additional revenue.
The Foreign Trade Information Center of the Ministry of Industry and Trade of Vietnam reported that the United States is still the main market for Vietnam's timber industry, despite the low export orders in the first half of this year. As the holiday shopping season approaches, the U.S. market is also starting to become more active, with news that large U.S. retail chains have begun to resume orders with Vietnam, and during the peak of the year, shipping costs to the U.S. have fallen, making Vietnamese products more competitive.
Although orders are starting to increase, the future of Vietnam's timber industry as a whole remains uncertain as the Vietnamese timber industry is completely dependent on the international market, with the majority of orders coming from the United States, Europe and China.
According to Le Hoang Hai, director of CMH Vietnam Import & Export Trading Co., Ltd., most of the current orders are short-term orders of two or three months, and the price of raw materials is also rising while the number of orders is irregular. This means that companies are unable to balance raw material procurement and consumption, which may bring additional cost pressures in the meantime.
On the whole, in addition to export orders, the Vietnamese government also needs to pay more attention to the sustainable development of domestic timber enterprises, according to some Vietnamese timber enterprises, many people have experienced two consecutive years of postponement of VAT refund, which makes everyone's economic situation not very optimistic, even in the recovery of the market situation, there is no ability to expand production, but also will make the Vietnamese timber enterprises looking forward to transformation and upgrading fall back into a passive situation, which is not a good thing for the long-term development of Vietnam's timber industry.