VietNamNet Bridge – Exports of wood products in the first four months of this year were worth US$700 million, $200 million less than the same period last year, the Viet Nam Wood and Forest Products Association (Vifores) said.

Exports of wood products in the first four months of this year were worth US$700 million, $200 million less than the same period last year.

Nguyen Ton Quyen, Vifores' general secretary, said that most of the goods exported in the first four months were ordered at the end of last year and that few new contracts had been signed.

Quyen thought second quarter exports would also be down.

The US and Japan were the largest importers of Vietnamese wood products, but now demand in those markets had declined markedly, he said.

As a result, chief export market for Vietnamese wood products was the EU.

On the up side, the association said new export markets had opened up in Eastern Europe and the Middle East.

Quyen said he did not expect any new export markets to open up for some time as it would take time to study demand.

Strict regulations imposed by the US and the EU on imported wood products were also an obstacle to exporters, Quyen said.

As a result, exporters were turning to the domestic market to sell their goods, he said.

Tran Duc Thuan, director of Hung Long Company, said local demand for wood products was high.

Research conducted by Hung Long in seven cities and provinces, each of 210 households questioned had spent on average VND3-5 million ($176-294) a year on wood products for their home.

All the households said they wanted to buy more furniture, such as beds, chairs and tables.

However, high prices and unpopular styles of wood products meant suppliers would have difficulty meeting the domestic demand, the association said.