Particle board of wood market in Vietnam

Earlier Report Observations

From 2018 to 2020, the Vietnamese particle board market expanded in volume, reaching 359 thousand m³ in 2020. This growth was supported by the signing of the FLEGT Voluntary Partnership Agreement with the EU, which opened new export opportunities while mandating timber legality requirements, affecting domestic supply chains. The US-China trade war created additional advantages for Vietnamese wood exporters. In 2020, the COVID-19 pandemic reduced global demand for timber imports and led to a temporary drop in wood chip prices, likely lowering production costs for particle board and contributing to the increase in domestic market volume.

Starting in 2021, the market experienced opposing trends: volume in kind fell to 300 thousand m³ in 2022, while the market value continued to rise, exceeding 127 million US dollars by 2023. This shift was driven by a sharp increase in wood chip prices, which soared to 176 US dollars per ton in 2022 due to global demand for pulp and biomass for energy. High chip prices incentivized exports of this raw material, likely reducing the availability of wood fiber for domestic particle board production. Additionally, uncertainty regarding VAT refund policies for exports influenced manufacturers' decisions.

By 2023, wood chip prices declined to an average of 162.9 US dollars per ton as demand from China and Japan softened, aiding a recovery in particle board volume to 316 thousand m³. Concurrently, the number of wood chip enterprises decreased from 91 to 77, indicating industry consolidation and heightened competition for raw materials with other products like wood pellets. The particle board market stabilized, though new growth drivers remained limited.

Production particle board of wood in Vietnam

In kind, 2017-2020, K m³

Top producers of particle board of wood, 2017-2020

World map of production of particle board of wood, 2017-2020

Vietnam's production of particle board of wood remained stable in 2020, with output at 250.0 thousand cubic meters, showing virtually no change from the previous year. The largest decline occurred in 2018 at 0.0%, while the largest increase was also recorded in 2018 at 0.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K m³

In value, 2017-2020, K $ US

In 2020, Vietnam's particle board of wood production was valued at 119.3 thousand US dollars, reflecting a modest year-over-year increase of 7.5%. From 2017 to 2020, production grew by 17.1%, translating to an annualized rate of 5.4%. The peak value was reached in 2018 at 121.0 thousand US dollars. The largest decline occurred in 2019 at 8.3%, while the largest increase was in 2018 at 18.8%.

Annual dynamics of production in Vietnam in value, 2017-2020, K $ US

Exports particle board of wood from Vietnam

Exports in kind, K m³

Vietnam's export volume of particle board of wood declined to 15 103 thousand cubic meters in 2020, marking a 38.4% decrease compared to 2019. Over the period from 2017 to 2020, exports fell by 14.8%, with a compound annual growth rate of -5.2%. The highest volume was recorded in 2019 at 24 501 thousand cubic meters, which also saw the largest increase at 62.1%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K m³

From 2017 to 2020, Vietnam's exports of particle board of wood were primarily directed towards Japan and China, which together accounted for 90.2% of total flows. Other destinations played a secondary role in the export structure.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, K $ US

After two years of growth, Vietnam's exports of particle board of wood declined in 2020, reaching 7 206 thousand US dollars. This represented a sharp reduction of 33.8% from the previous year. The maximum value was recorded in 2019 at 10 879 thousand US dollars, which also experienced the largest increase at 48.7%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, K $ US

During 2017-2020, Japan and China remained the key destinations for Vietnam's particle board of wood exports in value terms, jointly capturing 90.3% of total flows. Other trading partners were individually much less significant.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports particle board of wood to Vietnam

Imports in kind, K m³

Vietnam's imports of particle board of wood increased for the third consecutive year in 2020, reaching 78 990 thousand cubic meters. This represented a controlled gain of 5.1% from 2019. Between 2017 and 2020, imports grew by 27.5%, equating to an annualized rate of 8.4%.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K m³

From 2017 to 2020, Thailand and Malaysia continued to lead as the main sources for Vietnam's imports of particle board of wood in kind, together accounting for 85.2% of total flows. Other partners played a supplementary role.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, K $ US

Vietnam's imports of particle board of wood increased for the third year in a row in 2020, with the import volume amounting to 38 165 thousand US dollars. This marked an 11.0% year-over-year increase. From 2017 to 2020, imports rose by 33.1%, translating to an annualized rate of 10.0%.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, K $ US

In the period from 2017 to 2020, Vietnam's imports of particle board of wood in value terms were largely oriented towards Thailand and Malaysia, whose combined share reached 85.2% of total flows. Other destinations played a secondary role.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020