Woodchip producers in many provinces of Vietnam are suffering from rapidly declining prices.
Last year the average price of woodchips exported from Vietnam was around US$128/BDT while in the first half of 2020 this had dropped to between US$116 – 120/BDT.
The main reasons for the slump in price are said to be weak demand in the Japanese market as the pulp and paper industry in Japan has cut production due to lower falling domestic demand and the actions of Chinese importers who have grasped the opportunity to force down prices.
Japan and China together account for around 90% of woodchip exports from Vietnam.
In response, some Vietnamese enterprises are restructuring their business to produce wood-based panels (laminated boards/MDF) or furniture making. Last year Vietnam exported about 13 million BDT of woodchips and earned US$1.7 billion.