Vietnam’s exports of wood and forestry products in the first seven months of 2023 were estimated at $7.78 billion, down 25.5 per cent year-on-year, in which earnings from wood and wooden products stood at $7.21 billion, down 26.2 per cent.

Declines have been reported in Vietnam’s key markets, with exports to the US down 39.8 per cent year-on-year, to Japan 4.8 per cent, to China 26.3 per cent, to the EU, including the UK, by 33.7 per cent, and to South Korea 24.9 per cent.

These five main import markets contribute 89 per cent of total earnings.

Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri said global conflicts and high inflation together with the narrowing of major import markets are behind the declines.

Deputy Director of the Administration of Forestry at the Ministry of Agriculture and Rural Development Trieu Van Luc said high inflation of over 8 per cent in Vietnam’s key markets has forced local governments to issue tightened monetary policies, while consumers have cut spending on non-essential items, including wooden products.

The Russia - Ukraine conflict continues to affect the production and business activities of many enterprises, and has pushed up logistic costs and the price of raw materials and inputs for production.