Citing findings from a survey of 130 Vietnamese wood-processing firms, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said that industry companies suffered average losses of around VND25 billion (US$1.06 million) during the first quarter of this year. 

As such, total losses in the sector have amounted to VND3-5 trillion ($128-213 million).

Tuan also noted that local wood processors have seen approximately 80 percent of their planned exports postponed until further notice as American and European Union partners, 51 percent and 39 percent of their export market, respectively, remain in lockdown.

Local firms have since set their sights on the Japanese and South Korean markets to keep their heads above water.

Meanwhile, Chinese traders who import some eight percent of Vietnam’s wood products mainly purchase wood chips, according to the official.

“Due to the impacts of the COVID-19 pandemic, the Chinese market is only starting to recover and it will take some more time before things return to normal,” he said.

In the domestic market, around 70-80 percent of the wood products made in traditional craft villages are without buyers, thus forcing a suspension of production.

High-end products meant for hotels and offices have seen a 90 percent decline in revenue year-on-year.

The deputy minister said the production and consumption of wood products have been sluggish.

Consequently, suppliers of raw and auxiliary materials are bearing the brunt of the economic hardship brought on by the virus.

At least 90 percent of wood processors have either suspended their operations or rotated their workers, putting the supply chain at serious risk of disruption should things begin to return to normal, he continued.