Vietnam is one of the Biggest Plywood Exporter to Korea in recent years. Hereunder are 3 reasons for Vietnam Plywood's popularity in Korea.
Thanks to the cheap Labor cost and rich wood resources, Vietnam plywood has a huge advantage over the price. With a plantation area of up to 4.3 million hectares, Vietnam has the advantage of raw materials for industrial production, especially in the context that large industrial wood producing countries such as China, Malaysia, and Indonesia are running out of raw materials due to unsustainable and over-exploitation, Vietnam has a huge advantage over the supply of raw materials for industrial production.
>>>What makes Vietnam packing plywood cheaper than other countries?
Vietnam planted forest has diverse wood species such as Acacia, Eucalyptus, Rubber, ..., with a short growth cycle (from 5-10 years), which are very suitable for industrial production. In particular, acacia wood has high elasticity, good nailing force, which is perfect for construction products such as Film Faced Plywood, Marine Plywood.
With the bilateral trade hitting US 70 billion, 2-ways transportation is massive. This leads to good and competitive ocean freight between Vietnam-Korea. There are times ocean freight from Vietnam to Korea is just around 100$ as the exports volume from Korea to Vietnam is too high. And low-value products such as Plywood gains an advantage from that phenomenon.
Packing Plywood, Film Faced Plywood, Commercial Plywood are the most popular in Vietnam. Fair to say, compare to Production Line, Machinery,… Vietnam Plywood is quite inferior compared to Indonesia, Malaysia,…However, Vietnam Packing Plywood is perfectly matched with the demand for pallets and electric devices containers/box/.. which does not require too high quality as long as the price is competitive.
In recent years, Vietnam Plywood Factories are more focused on improving the Production line, Worker skillset, quality,…Besides, Vietnam and Korean Governments are motivating and facilitating literal trade conditions and reducing tariffs which promise to boost plywood volume from Vietnam to Korea.