Vietnam’s wood industry is facing mounting challenges as global economic uncertainties and stricter trade policies reshape the international trade landscape.

Once regarded as a strong export sector, the industry is undergoing a strategic reassessment as local enterprises seek to maintain momentum and strengthen the global presence of Vietnamese wood products.

Chairman of the Binh Duong Furniture Association Nguyen Liem noted that significant changes in trade policies among importing countries have been evident since the start of the year.

Despite exporting to more than 160 countries and territories, the United States (US) remains the largest market for Vietnamese wood products, accounting for nearly 50 per cent of total export value. As a result, any regulatory shifts in the US market have a widespread impact on the industry.

Most recently, the US Department of Commerce (DOC) launched anti-dumping and countervailing duty investigations into plywood imports from Vietnam, intensifying pressure on local producers.

The action has placed more than 130 Vietnamese timber processing and exporting companies under scrutiny, casting uncertainty over one of Vietnam’s most valuable export categories.

Despite this, the Ministry of Agriculture and Environment (MAE) has set an ambitious export goal for the wood sector in 2025 – USD18 billion.

In the first six months of the year, the export value of timber and forest products was estimated at over USD8.2 billion, up 8.9 per cent compared to the same period in 2024.

Yet, global geopolitical tensions and trade policy shifts continue to threaten the feasibility of this target.

Besides the US, the European Union has also implemented new technical and legal requirements.

Regulations such as the EU Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), and the Corporate Sustainability Reporting Directive (CSRD) are demanding more rigorous environmental and traceability standards.

In Japan, meanwhile, policy changes are affecting wood pellet exports. Requirements for transparent, certified sourcing and fluctuations in electricity pricing are influencing both production costs and export competitiveness.

In addition to trade barriers, the domestic wood industry is contending with challenges in raw material supply.

Director of Hiep Long Co Ltd Huynh Quang Thanh said that the price of imported wood had increased due to global supply restrictions. “We are facing mounting pressure on production costs,” he said.

Moreover, Vietnam’s wood exporters are in fierce competition with major global players such as China, Malaysia and Indonesia – countries that boast advanced processing technologies, lower costs, and longstanding supply chains.

STRATEGIC RESPONSE

In response to the ongoing investigations, the Vietnam Timber and Forest Product Association (VIFOREST) has said it is preparing to participate in the US hearings.

The aim is to clarify that Vietnam’s plywood industry merely complements, rather than harms, the US domestic sector.

Meanwhile, the MAE is actively coordinating with US governmental bodies to resolve the issues through dialogue and technical clarification. Experts have urged Vietnamese wood businesses to expand into new markets to reduce overreliance on traditional buyers.

In particular, such regions as the Middle East, South Asia, Africa, Latin America, and Eastern Europe have emerged for their growing demand for furniture, construction timber, and value-added products.

EXPLORING NEW MARKETS

Among these, the Middle East offers promising opportunities. The United Arab Emirates (UAE) and Qatar have demonstrated strong demand for luxury interior and exterior wooden furniture, especially for high-end hotels and resorts.

Vietnamese enterprises are encouraged to participate in trade fairs such as Index Dubai, build partnerships with regional distributors, and obtain international certifications including FSC and PEFC to enhance market credibility.

India, too, is becoming an attractive destination for Vietnamese wood products.

Rapid urbanisation, rising incomes, and a preference for compact, modern furniture have made online platforms like Amazon India and Flipkart particularly lucrative.

Vietnamese exporters report strong sales growth in lightweight, space-saving products suitable for Indian apartments and offices.

The ongoing negotiations for a Free Trade Agreement (FTA) between Vietnam and India are also expected to reduce import tariffs from 10 per cent to five per cent, further boosting competitiveness.

Source: Borneo Bulletin

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