Vietnam – the largest market for wooden furniture to the US

According to calculations from statistics of the United States International Trade Commission (USITC), in June 2022, the US imported wooden furniture reached 2.3 billion USD, up 5.7% compared to June. 2021. In the first six months of 2022, US imports of wood furniture reached $13.7 billion, up 10.6% year-on-year.

Under pressure from high inflation, consumer demand will decrease, but the US import demand for wood furniture will still increase in the first half of 2022. In which, Vietnam is the market that provides wooden furniture largest timber for the United States, with a value accounting for 36.2% of the total import value, down 3.2 percentage points over the same period in 2021. Followed by the Chinese market accounted for 19.5%, down 1 ,3 percentage points.

The impact of the conflict between Russia and Ukraine has led to high energy prices, leading to increased transportation and input costs in the wood furniture manufacturing markets. Therefore, the United States is tending to increase imports from markets that are geographically closer to reduce transportation costs such as Mexico and Canada.

In the first half of 2022, most US wooden furniture imported from Vietnam accounted for a high proportion of total imports to the US, except office furniture. This shows that Vietnamese wooden furniture products have attracted US consumers.

Opportunities to increase market share always come with risks of trade defense and tax evasion. Therefore, to avoid risks from lawsuits, Vietnamese businesses need to actively participate in the investigation process of US authorities to limit the number of businesses subject to tax. Along with that, the strict compliance with market regulations, especially on the origin and legality of raw materials will also help the Vietnamese wood industry maintain its market share in this market.

Source: https://goviet.org.vn/