Wood exports to UK rise by 53.5% in first half26/07/2021 60
The export value of local timber and wood products to the UK market during the first half of the year soared by 53.5% to US$146.5 million against the same period last year, according to the Vietnam Timber and Forest Products Association (VIFOREST).
Some of the key export items include construction furniture, chairs, kitchen decorations, and bedrooms, all of which have enjoyed a rise of between 16% and 47% throughout the reviewed period.
The International Trade Center (ITC) reports the UK mainly imports wooden furniture from China and Poland.
Although Vietnam is the third largest supplier of wood products to the UK, its export value accounts for only 7.5% of the UK’s overall wood imports.
Following the enforcement of the UK-Vietnam Free Trade Agreement (UKVFTA), several timber and wood products are now set to enjoy a preferential tariff of 0% over a five-year period.
The Vietnamese Ministry of Industry and Trade notes there remains plenty of room for local firms to boost exports to the UK as the wood industry is among those to significantly benefit from the UKVFTA.
Meanwhile, along with highly competitive prices, strong raw materials, and high-quality products, rubber wood is not commonly grown in the UK or the EU, a factor which creates advantages for Vietnamese businesses operating in the demanding market.
In addition, some large companies operating in the UK wood industry, such as IKEA, the largest furniture retailer in the UK, have already established production facilities or signed long-term partner contracts with manufacturers in Vietnam.
The UKVFTA is anticipated to increase transparency regarding the quality standards of products, improve the Vietnamese business investment environment, and serve to attract greater FDI inflows into the country’s wood processing sector, according to industry experts.