WOOD EXPORTS TO CHINA GROW IMPRESSIVELY

China is among Vietnam’s three largest wood export markets with export value reaching more than US$ 1 billion. In 2020, Vietnam’s wood exports to China reached approximately US$1.2 billion, making the country Vietnam’s third largest wood export market  after the US and Japan.

Despite all challenges of the Covid-19 pandemic, wood and wood product exports to China remained strong. Particularly, while wood exports to the major markets such as the US, South Korea, the UK and Canada dropped in September the exports to China still had positive growth rate compared to August 2021.  Wood and wood products exports to China reached US$1.238 billion in the first nine months in 2021, 25% higher from a year earlier. Especially with sharp increase in wood exports in October, Vietnam's wood exports so far this year have exceeded the previous record of US$1.2 billion made in 2020.  Vietnam’s total export value of wood and wood products this year is likely to top US$1.4 billion.

Despite an impressive growth in wood and wood product exports to China, most of the Vietnamese wood products entering China were wood raw materials.

Wood chip, wood plank and floor board were the key wood items exported to China. In terms of export value, wood chip took the lead with US$891.8 million in the first nine months of 2021, up 17.2% compared with the same period last year, accounting for 78.7% of Vietnam's total export value of wood and wood products to China.  Wood plank and floor board reached US$173 million in the same period, an increase of 114.7% over the same period last year.

Although wooden furniture exports to China had a positive growth rate but remained moderate at US$64.7 million in the first nine months of 2021, up 3.7% on a year ago.

Meanwhile China's wooden furniture imports reached US$748.3 million in the first nine months of 2021, up 15.5% on a year ago. The figures showed that Vietnamese wooden furniture accounted for only 9.2% of China's total wooden furniture imports.

Driven by income growth and improving housing conditions China is increasingly demanding more wooden furniture. Besides, China’s demand for outdoor furniture has grown at a fast pace and it’s expected to reach 3 billion Yuan in 2021.

In addition, China’s demand for children’s furniture is on the rise. As living conditions continue to increase in China, parents here are becoming increasingly willing to spend money on the furniture suitable for the development of their children.

Vietnam’s wooden furniture exports to China will grow strongly in the last months of the year and in the next year, said experts as China's power crisis is impacting industrial production. Moreover, stricter environmental regulations have hampered China’s wood industry.