In the recent decade, based on 2 key competitive advantages, including cheap labour (average monthly wage of US$300) and an abundant wood supply (3 million ha. of fast growing acacia plantation and 1 million ha. of rubberwood. Vietnam’s wood and wood product (W&WP) exports have consistently grown at over 10% annually. This growth was maintained during the first two and half months of 2020 when W&WP exports earned US$2.047 billion, a year on year growth of 18%.
With the COVID-19 pandemic spreading in the US (market for nearly 50% of W&WP shipped from Vietnam), Japan (13%), China (12%), EU (10%), South Korea (10%) the well-developed supply-demand chain has been disrupted.
Survey - Impact of pandemic on timber sector
A quick survey conducted recently by VIFOREST and local associations including HAWA, BIFA, FPA Binh Dinh Associations with 124 enterprises shows the severe impacts of the pandemic on Vietnamese wood industry.
Huge financial losses by enterprises