In the first half of 2021, exports of wood and wood products to the UK increased by 53.5%
According to the Vietnam Wood and Forest Products Association, the export value of wood and wood products to the UK in the first 6 months of 2021 reached 146.5 million USD, up 53.5% over the same period in 2020. Key exports to the UK such as construction furniture, chairs, kitchen furniture, bedrooms, and other furniture all increased from 16% to 47% in the first half of 2021.
Analysis from statistics shows that, in the first 5 months of 2021, wood products used in construction such as wooden doors, flooring, door sills, etc. have an export value of 3.46 million USD. , up 42% over the same period. Seating products reached 20.12 million USD, up 37% over the same period in 2020. Kitchen furniture exports reached 6.7 million USD, up 16% over the same period in 2020.
Office furniture reached 17.69 million USD, up 17%. The export value of other wooden furniture products reached US$41.78 million, up 23%. Particularly, wooden furniture products, the export value in 5 months decreased by 5%, reaching only 2.58 million USD. In the opposite direction, imports of wood and wood products from the UK in the first 5 months of 2021 only reached USD 0.97 million, down 2% over the same period.
According to statistics from the International Trade Center (ITC), the UK imports wooden furniture mainly from China and Poland with the proportion of imports from these two markets accounting for 53.6% of the total. value of British wooden furniture imports. Vietnam is the third largest supply market for the UK, but the value of imports from Vietnam only accounts for 7.5% of the total import value of this item of the UK.
However, with the complicated developments of the Covid-19 epidemic in the southern provinces in the past time, especially in the wood processing centers of our country such as Binh Duong, Dong Nai, and Ho Chi Minh City. In Ho Chi Minh City, many wood businesses have to distance themselves or close due to Covid-19 infections. The Vietnam Wood and Forest Products Association forecasts that in the third and fourth quarters of 2021, the export turnover of wood and wood products to the UK will decrease compared to the first months of the year due to the impact of the Covid-19 epidemic in Vietnam. domestic market, but compared to 2020 will increase from 10-12%.
Take advantage of the UKVFTA Agreement
When the UKVFTA Agreement comes into effect, many wood products and wood products have a tax rate of 0% within 5 years (the current rate of wood materials is 2-10%). According to the Import-Export Department (Ministry of Industry and Trade), wooden furniture is one of the export industries benefiting greatly from the UKVFTA Agreement. Therefore, there is still a lot of room for Vietnamese timber enterprises to exploit.
On the other hand, thanks to highly competitive prices, good raw materials, and high product quality. Rubber wood from Vietnam is also a type of wood that the UK or the EU cannot grow much. These are the advantages of Vietnamese wood and wood products in the UK market.
In addition, some large companies in the UK wood industry already have production facilities or sign long-term partner contracts with manufacturers in Vietnam such as IKEA, the largest furniture retailer in the UK. Brother.
The UKVFTA agreement will also help balance the advantages in the commercial playing field for Vietnamese enterprises to export to the UK. At the same time, increasing transparency on quality standards. From here, the British standard product brand will help Vietnamese goods, including wood products and wood products, easily penetrate many other markets.
In addition, UKVFTA not only helps to increase the export of this product to the UK, but also creates an attractive business investment environment in Vietnam, attracting FDI inflows into Vietnam in the wood processing industry.
Like other FTAs of Vietnam, the UKVFTA Agreement is not all "pink". Technical barriers to goods imported from the UK are very tight. In order to take advantage of the UKVFTA Agreement, wood businesses need to invest in improving the value and quality of their products to strengthen the competitiveness of their products in the market. At the same time, businesses need to meet management standards and processes, attach importance to social responsibility, and transparent information about labor and production environment to have the best preparation when facing challenges. with competitive pressure.