20% increase in timber imports prices damaging Vietnamese furniture industry

Vietnamese producers of wood furniture are struggling ”due to an increase in the price of imported wood that has negatively affected their operations”. Source: Vietnam News
The price of timber imports from the EU, US and Africa increased in Vietnam by 20%, in the last five months. Combined with the fact that Vietnamese furniture producers have fixed sales prices for the next 3-6 months, the increase of timber prices are causing big losses.
The surge in prices is mainly attributed to the US housing recovery and limited supply from Africa, says a Vietnamese official. Despite these difficulties, the Vietnamese furniture exports are higher by 11%, year-on-year, in the first six months of 2013 (up to US$2.23 billion). At the same time, the imports of wood are lower by 5% (down to US$617 million).