Inflationary pressure forced US consumers to tighten spending, in which a wooden furniture is a non-essential group, so the demand for this item slowed down in the US market. This is also the main export item in the structure of Vietnam’s wood and wood products to the US market.
In the first eight months of 2022, Vietnam’s wooden furniture export value to the United States reached $5.5 billion, down 2.8% over the same period in 2021, the export proportion accounted for 87.93%. total export value of wood and wood products to the US market. With the value accounting for a large proportion, the reduction of this item will reduce the overall export value of wood and wood products to the US.
In the coming months, the prospect of exporting wood and wood products, especially wooden furniture to the United States, is more favorable due to the cyclical factor, when the housing construction season is completed and the demand for wooden furniture is improved. Demand for furniture products increased accordingly.
However, inflation is still increasing in the United States, along with the conflict between Russia and Ukraine that has not shown any signs of ending, causing the price of raw materials and fuel to rise, leading to a sharp increase in the costs of businesses. On the other hand, the disadvantage of the exchange rate with competitors, labor shortage after the pandemic; Impacts from the economic situation, inflation, accusations of origin fraud, and origin of raw materials… are also becoming barriers for Vietnam’s wood and wood products exports to the US market.