The International Market with Vietnamese Plywood Products

I’m Ms. Pinky, a passionate advocate for the plywood industry and the stories behind its development. With over 20 years of experience, I aim to help Vietnamese businesses thrive in the global market while encouraging domestic consumers to use high-quality wood products. Today, let’s dive into the potential of Vietnamese plywood, exploring its opportunities and challenges on the journey to establishing its global position!

1. Impressive Growth of Plywood in the International Market

According to data from Tradesparq, in the first 11 months of 2019, global plywood transactions reached 121,514, marking a 25% increase compared to the same period in 2018. This shows that the demand for plywood in the global market remains high, leaving ample room for Vietnam to expand its presence.

Leading Plywood Exporters:

Although Vietnam only accounts for 2.3% of global plywood exports, this marks a promising beginning..

Top Importing Markets:

• United States: Leads with 48% of the global plywood import market.
• India: Second with 13%.
• Vietnam: Interestingly, Vietnam is also the third-largest plywood importer globally, accounting for 9.21% of the market.

👉 Chart: Largest Plywood Importing Countries

2. The Potential of Vietnam’s Plywood Export Market

Strengths of Vietnam:

• High durability, resistance to warping, and excellent load-bearing properties make Vietnamese plywood ideal for packaging and formwork.
• Vietnam benefits from free trade agreements (FTAs) with the US and Europe, paving the way for export growth.

Existing Challenges:

• High-end interior products (melamine or laminate-coated plywood) do not yet meet international standards.
• A lack of technology to produce smooth and evenly surfaced plywood makes it difficult to compete with products from China and Malaysia.

👉 Chart: Vietnam’s Plywood Export Growth (2017–2019)

3. The Impact of the US-China Trade War

The US-China trade war has significantly reshaped the plywood trade landscape:

• In January 2018, the US imposed anti-dumping and anti-subsidy tariffs on Chinese plywood:
  • Anti-dumping tariffs: 183.36%.
  • Anti-subsidy tariffs: 22.98% to 194.9%.

Consequences:

• China’s plywood export revenue dropped from $800 million in 2018 to $300 million in 2019.
• Vietnam seized the opportunity, increasing its plywood exports from $63 million in 2017 to $309 million in 2019.

4. The Paradox of Vietnam’s Plywood Market

Vietnam: A Major Importer Despite Local Production:

Despite having numerous production facilities, Vietnam still imports 9.21% of the global plywood market, primarily high-end products that the country has not yet mastered producing.

Risks from Foreign Enterprises:

• Chinese businesses relocate production lines to Vietnam to avoid tariffs.
• This has impacted the reputation of Vietnamese products, as they are often scrutinized for anti-circumvention tariffs.

5. The Way Forward for Vietnam’s Plywood Industry

Improving Quality:

• Invest in modern technology to enhance the quality of interior plywood.
• Develop high-end products such as melamine-coated and laminate-coated plywood.

Tapping into the Domestic Market:

• Build consumer trust in high-quality, locally produced plywood with clear origins.
• Encourage the use of Vietnamese products to reduce reliance on imports.

Building a National Brand:

• Promote “Made in Vietnam” plywood with international standards.
• Obtain FSC certification to boost credibility.

6. A Call to Action

For Vietnamese businesses:
Do not let foreign enterprises dominate the market. Seize the opportunity, improve product quality, and unite to develop the industry.

For domestic consumers:
Choosing Vietnamese plywood products not only protects your interests but also supports the sustainable growth of the domestic plywood industry.

Conclusion

Vietnam’s plywood industry stands at the threshold of significant opportunities for growth, both domestically and internationally. However, to fully capitalize on this potential, businesses need to unite, invest in technology, and build strong brands. Let’s work together to elevate Vietnamese plywood to a prominent position on the global map!

Pinky from HG Plywood