The impact of raw material on Vietnamese marketplace

In the first half of 2024, Vietnam’s veneer raw material and plywood market witnessed significant fluctuations. The price of veneer raw materials increased by an average of 15-20% compared to the end of 2023, causing many impacts on the wood processing industry.

The price increase was not uniform across wood types and regions. Rubber wood saw the strongest increase, while pine wood had the lowest increase. Eucalyptus and acacia also experienced significant gains, with eucalyptus typically being more expensive due to its higher quality and diverse applications. Regionally, the South faced the highest price pressure, followed by the Central and Northern regions.

Several factors contributed to the price increase, including supply shortages due to shrinking plantation areas, stricter environmental protection policies, impacts of extreme weather, rising production costs, increased demand from real estate and construction markets, trends toward environmentally friendly materials, as well as international factors such as geopolitical tensions and exchange rate fluctuations.

The rise in raw material prices of veneer directly affected plywood prices, with an average increase of 10-15%. High-quality plywood faced stronger price pressure due to the scarcity of good raw materials.

Vietnam’s plywood industry is facing many challenges. Many businesses, especially small and medium enterprises, have had to adjust their production plans to adapt. However, this situation has also promoted a trend toward producing high-quality, high-value-added plywood. Companies are also accelerating technological innovation, seeking alternative materials, and increasing recycling efforts.

For the second half of 2024, veneer raw material prices may continue to increase slightly. Plywood prices are expected to stabilize but remain at high levels. The trend towards sustainable, environmentally friendly plywood will continue to develop strongly.

Despite facing many challenges, this is also an opportunity for Vietnam’s plywood industry to innovate technology, improve product quality, and seek sustainable raw material sources, aiming for stable development in the future.