VietNamNet Bridge – The Ministry of Industry and Trade has announced that exports of Vietnamese wood products failed to reach the target of US$2.5bil, earning $2.15bil in the first 11 months of the year, up 23.6% over the same period in 2006.

Import value of wood products grew strongly up 37% on spending of $938mil. Exports of timber to the US, China and the EU spiked while exports to Japan went slowly.

Statistics from the General Department of Customers showed that in the first 10 months, export turnover of timer and wood products earned $1.9bil, an increase of 23.4% against 2006.

Export turnover from the US was the strongest at $90.8mil in October alone, a 10.7% rise since September, which brought total export turnover of timber and wood products to the US to $772mil, an increase of 27.1% compared to 2006.

Major wood products sold to the US market include home decor, handicrafts, home appliances and picture frames.

In October alone, export of wood products to Japan stood at $27.8mil, marking a slight increase of 1.3% against September, 2007. Exports to Japan were down 4.69% compared to October 2006.

In the first 10 months, total export turnover of timber and wood products to the land of the rising sun nudged 257mil, a year-on-year increase of 14.8%.

Wood products popular in the fickle Japanese market are home decor, office equipment, kitchen accessories and flooring.

Despite October's export turnover to China dipping by 8.9% from September, it did rise 38% against October last year.

In the last 10 months, export turnover to China hit $140mil, representing an impressive 98% increase over the same period last year.

Export turnover to Taiwan, Malaysia, Singapore, Sweden, Denmark and the Netherlands all saw slight reductions.

The ministry attributed the dismal export turnover to a series of difficulties facing the country's wood exporters.

Imported timber makes up 80% of total supply to domestic processors, while prices of raw materials are up 10 to 30% - driving production costs higher.

Many countries such as Cambodia, Indonesia have restricted their timber exports. Vietnamese wood processors are forced to buy timber through intermediaries, which makes the final price of finished products higher.

As a result, Vietnamese wood products find it hard to compete with nations such as China, Thailand, Indonesia and Malaysia where supply is more plentiful.

In addition, the demand of importers for certified wood products has grown. The EU market now requires timber products to be certified by the Forest Stewardship Council (FSC). To its own detriment, Vietnam does not have compatible certification.

Most wood processors here are small-scale and lack adequate financing. They do not invest nearly enough in diversification and improving product quality.

Poor and insufficient trade promotions and limited supply have also been blamed for the disappointing performance of wood exports.

(Source: Viet Nam News)