Sector Insight

In 2021, Wood and Wood products (W&WP) continued to rank 6th in export turnover of goods among export sectors of Vietnam. Exported to over 160 countries. Exportturnoverrose to the top of Southeast Asia, 2nd in Asia (after China), and 5th in the world. The wood products supplied from Vietnam accounts for about 6-7% of the world market share. The domestic consumption has been around USD3-4 billion, and targeted to be USD 5 billion and USD 6 billion as of 2025 and 2030, respectively.

In 2022, the Lumber futures price has experienced a steep downward trend from the peak in Q1.2022 because the economies of numerous

countries have been damaged due to the sharp rise of inflation rate, resulting in the decrease in demand towards home building and improvement. People prioritize on essential goods, cutting spending on discretionary goods such as wood products.

 It is expected that the Lumber futures will continue to be corrected in 2023 since the global macro economy is still unstable. High inflation rate keeps up influencing people’s demand for wood products.