The United States will announce the results of sanctions on Vietnamese wood furniture

According to Vietnamese media reports on November 28, the United States will announce on December 1 whether the hardwood plywood imported from Vietnam has evaded tariff sanctions. It is reported that this is the fourth time that the United States has adjusted the date of the announcement of the investigation results. Moreover, the wood furniture industry is still facing huge risks. The price of raw materials is soaring. Vietnam's largest export market for wood and furniture may impose sanctions.

Vietnam’s Ministry of Industry and Trade recently issued a report stating that due to tariffs and the overall market downturn, it is recommended that companies carefully arrange their production plans for 2023. Economic slowdown and high inflation in many major import markets, such as the US, EU and Japan, have directly affected Vietnam's production and exports.

The department is worried that in the whole year of 2023, Vietnam's wood and furniture manufacturing business will experience a sharp decline, and the number of orders will drop sharply. Exports of wooden furniture to the US reached $6.5 billion in the first 10 months of 2022, accounting for nearly 88% of total exports of lumber and wood products, down 3.1% from the same period last year. According to the Ministry of Industry and Information Technology, the export value of wooden furniture to the EU in the first 10 months of 2022 will only reach 784 million US dollars, down 2% from the same period last year.

Meanwhile, in Vietnam's home market, production and trade activities remain volatile, putting pressure on local production. Le Phi Chien, a representative of Lien Ha, a wood product processing village in Hanoi, said land has become more expensive as the investment rate of factories has increased. At the same time, interest rates on loans are also increasing, worrying many households. "Before, we only needed to do wholesale, but now we have to increase our retail business to maintain operations," Chien said. Data from the Vietnam Timber and Forest Products Association (Viforest) show that export orders from timber companies are falling sharply, especially in the US and EU markets. Currently, compared with 2021, 80% of enterprises have experienced a decline in revenue. Average orders in the US, EU and UK markets are expected to decline by more than 40%