Vietnam is Canada’s fourth largest supplier of wood furniture with a market share of 12.9% of the country’s total wood furniture imports.
The Industry and Trade Information Centre (VITIC) under the Ministry of Industry and Trade says the wood processing sector is advantageous in product supply and demand in the Canadian market.
According to Statistics Canada, the country’s furniture imports hit US$184.5 million in January, up 14.2% against the same period last year with major markets as China, the US and the EU.
Vietnam exported US$23.76 million worth of furniture products to the market in January, a year-on-year rise of 30%.
Canada’s wood furniture imports are increasing sharply as the domestic industry has reduced production which is uncompetitive against that in lower cost countries, including Vietnam.
In addition, many tax lines will drop to zero after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Vietnam and Canada are members, comes into effect.
Canada wood industry is very strong with an annual productivity of 600 million cu.m. There are huge opportunities for Vietnamese businesses to import wood materials and boost exports of wood products to the market if they can take advantage of CPTPP tariff preferences.