The export of cabinets and bathroom cabinets increased sharply in the first half of the year! Trump personally instructed to initiate a “301 investigation” against Vietnamese timber!

 The export of cabinets and bathroom cabinets increased sharply in the first half of the year! Trump personally instructed to initiate a "301 investigation" against Vietnamese timber!

According to Vietnamese media reports, in the first seven months of this year, the growth of cabinets was very strong, reaching almost 100%. The total export of cabinets and bathroom cabinets in Binh Dinh Province exceeded 100 million US dollars. The outdoor furniture is only more than 230 million US dollars.

The Vietnam Wood Products Association issued a document on its official website that cabinets and bathroom cabinets are the foundation for the next development of Vietnam's timber industry. At the same time, the association indicated that it may establish a cabinet, bathroom cabinet and decorative panel branch to expand the comprehensive competitiveness of enterprises invested by local Vietnamese.

At the same time, Binh Dinh Province has the potential to cultivate cabinet production areas, with an average enterprise value of US$1 to 2 million, so as to cultivate local Vietnamese enterprises and seize the US 7 billion cabinet market.

In addition, Chinese-funded companies in Vietnam (including Taiwan) are an overwhelming force compared to local companies. According to the data of the Vietnam Wood Products Association, during the Sino-US trade war, about 60 Chinese cabinet companies half-transferred to Southeast Asia in the form of FDI, with a total annual export value of 6 billion yuan.

29 cabinet manufacturing companies are located in Malaysia, Thailand, Indonesia, 25 are located in Vietnam, and 15 of them are large-scale companies located in Xin Binh District, Ho Chi Minh City.

However, the Vietnamese timber industry has faced the big stick of US trade sanctions.

The statement pointed out that the U.S. Trade Representative will investigate Vietnam's behaviors, policies and practices related to the import or use of "illegal logging or illegal trade" timber, as well as behaviors, policies and practices that may cause the devaluation of Vietnam's currency and cause harm to U.S. businesses. These investigations will be conducted in accordance with Article 301 of the US Trade Act of 1974, and the US Trade Representative will consult the US Treasury Department on currency valuation and exchange rate policy issues.

At the same time, Trump also stated that Trump is firmly committed to combating "unfair trade" behaviors that harm American workers, companies, farmers and herdsmen; the use of illegal timber to make wood products for export to the US market undermines the business environment, and he is not in compliance with rules , American workers and companies that use legally harvested timber are "unfair."

In addition, the "unfair" exchange rate will hurt American workers and companies that compete with Vietnamese products, because Vietnamese products may be "artificially priced lower" due to undervaluation of the exchange rate. He said that the United States will carefully review the relevant investigation results and then decide whether to take appropriate measures to respond.

According to statistics from the General Administration of Forestry of Vietnam, it is estimated that in 2020, the export volume of Vietnam's wood products and forest products will exceed 12.5 billion U.S. dollars, an increase of 18% year-on-year. The main export markets of Vietnamese timber companies are the United States, Japan, China, the European Union and South Korea.

As the largest exporter of Vietnamese timber, the US’s “301 Investigation” may have a significant impact on the Vietnamese timber industry.