Vietnamese woodwork makers are very worried about the sluggishness of exports during the past two months and they are afraid that they cannot fulfill target at US$3 billion revenues this year, the Trade newspaper reported.
The woodwork industry posted annual average growth of 50 per cent in recent years, but its exports in the first three months of this year are estimated to grow only 20 per cent.
Vietnamese woodworks have been present at some 120 countries and territories worldwide, but most of them were exported to the U.S., EU, and Japan.
However, local exporters said they are now faced by a number of difficulties in the U.S market, which consumed up to 50 per cent of Vietnam’s total exported woodworks, due to the country’s economic recession.
Moreover, they are warned of possible anti-dumping lawsuit from the U.S. companies who complained that Vietnamese woodworks are putting pressure on them and are the major for the close of a number of U.S. woodwork processing plants.
Local exporters agreed that material shortage remains the biggest hindrance to local woodwork industry.
According to the Agriculture and Rural Development, local companies are allowed to use only 3.23 million cubic meters of wood from 4.49 million hectares of natural and planted forests while they need around 11 million or 12 million cubic meters.
The companies have to import up to 80 per cent of wood to ensure sufficient material for processing and re-exporting. But they are finding hard to access bank loan due to local banks’ loan limit.
Last year, Vietnam exported US$2.4 billion worth of woodworks, but had to spend US$800 million on importing 4.5 million cubic meters of wood.
In the first two month of 2008, the country’s woodwork exporters earned US$470 million, up only 28.3 per cent, but bought US$201 million worth of wood, up 54.5 per cent. (Trade)
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