New Zealand is exporting increasing volumes of lumber to Vietnam, now the world’s second-largest timber furniture exporter – with NZ-based Radiata pine is being used to build stronger and more durable furniture.
It comes as Vietnam is closing in on Australia, which is NZ’s fourth largest market for lumber (behind China, the US, and South Korea).
That is, according to the latest data produced by Statistics New Zealand, which reports that total lumber exports are up 17% for the year to date in 2023 – with trade into Vietnam up from 52,600 cubic metres (6% of all exports) to 87,800 cubic metres (or 8.5% as a percentage of all exports).
Wood Central understands that the major growth in trade comes after the NZ-based distributors of custom-cut Radiata pine and Vietnamese furniture manufacturers signed major deals more than five years ago – including a deal between New Zealand’s Sequal Holdings Ltd. and Vietnam’s VinaFor Saigon.
Wood Central understands that Radiata pine’s dimensional stability is a crucial wood property for interior fittings and joinery uses. It has low shrinkage, which contributes to its stability. It can be nailed or joined efficiently with good resistance to splitting, which is another important attribute.
“Forestry is an important sector for New Zealand, significantly contributing to our trade relations with Vietnam. New Zealand’s timber exports to Vietnam were valued at NZ$80 million ($50.8 million) in the year ending 2018, making this our second-largest export sector,” according to then-NZ ambassador to Vietnam Wendy Matthews.
“This agreement successfully combines New Zealand’s sustainable Radiata pine wood with Vietnam’s expertise to enable Vietnamese furniture manufacturers to produce sustainable, strong, and high-quality products.”
The growth comes after Wood Central reported that the Luxon government wanted to use “Brand NZ” to boost the country’s US $2.8 billion timber export market.
“Under Brand New Zealand, we have a leading story to tell as to the value our wood products and timber used in construction play in addressing climate change and sustainability challenges,” according to Mark Ross, CEO of the WPMA, who said the government was now looking to use free trade agreements to boost global exports of timber products.
“Wood provides multiple benefits to New Zealand, and it is positive to see the government backing our industry in removing unnecessary barriers and implementing new trade agreements.”
“Export growth will help fund the wood processing industry, with value-added wood products encouraging greater onshore processing of logs, more employment in our regions, and increasing global contribution to embodied carbon storage.”
Whilst lumber exports are on the rise, NZ’s log exports are declining—a 12.8% reduction in Chinese demand (which makes up 85% of all trade) and a 23% drop in South Korean demand (which now makes up just under 10% of trade) to blame for a 9% drop in exports.
Wood Central understands that the drop in China and South Korea is offset (to an extent) by a rise in Indian demand. After the two countries restored trade in March, India now makes up 4.3% of trade for the year.
- To learn more about the New Zealand and Indian log dispute, click here for Wood Central’s special feature.
