Vietnam’s exports of timber and its wood products are facing a crisis since the Delta variant outbreak hit in July. Furniture manufacturing companies in the United Kingdom, the European Union and other countries and regions are also facing the threat of interruption of the domestic supply chain due to the shortage of wood materials and other factors.
Against the background of strong demand conditions, supply is slow to catch up due to several reasons, including production cutbacks, input shortages and surging shipping rates. Such large supply-demand imbalances are not only holding back the recovery across the advanced economies but also fuelling near-term inflationary pressures.