In response to U.S. reciprocal tariffs, some Vietnamese wood manufacturers are considering producing on the American soil, said Ngo Sy Hoai, vice chairman and general secretary of the Vietnam Timber and Forest Products Association (Viforest).

The Ministry of Agriculture and Environment reported that the total export turnover of agricultural, forestry, and fishery products in the first seven months of 2025 reached $39.68 billion, up 14.7% year-on-year. Of this, wood and wood products reaped $9.67 billion, an increase of 8.3%.

In the Jan-July agricultural-forestry-fishery trade surplus of $11.52 billion (up 15.9% year-on-year), wood and wood products made the largest share, with $7.7 billion, up 4.1% over the same period in 2024.

The U.S. remained Vietnam’s largest market for wood and wood products, accounting for 55.9% of total exports, followed by Japan and China, with 12.4% and 10.7% respectively.

According to the revised U.S. reciprocal tariff policy for Vietnam, starting from August 7, 2025, the tariff rate for goods imported into the U.S. market is 20%, with wood and wood products taxed at 19.1%.

Refreshing existing markets

Ngo Sy Hoai, vice chairman and general secretary of Viforest, stated that Vietnamese wooden furniture is currently being exported to over 160 markets worldwide, with the U.S., South Korea, Japan, the EU, and China being the top five markets and accounting for over 90% of Vietnam's total wood exports. With an over 55% market share, the U.S. continues to be Vietnam’s most important wood export market.

"Therefore, simply refreshing this existing market can already bring numerous opportunities for enterprises to increase export value," he said.

Regarding the nearly 20% tariff rate, the Viforest leader noted that this rate is still lower than those imposed on some competing countries and, hence, is not a major cause for concern.

“The figure of over $9 billion in wood exports to the U.S. in the first seven months represents 38-40% of the total U.S. wood furniture import value. It’s been said that for every 10 American women in the kitchen, four are using kitchen cabinets imported from Vietnam,” Hoai remarked, illustrating Vietnam's dominant presence in the U.S. market.

He added that while demand in the U.S. remains, the higher tariff could raise prices, which might dampen demand. “I believe this is also a time for Vietnamese wood businesses to look back themselves to seek new growth opportunities in this traditional market,” he noted.

Hoai also suggested that achieving this would be difficult for individual businesses alone, but could be realized through forming strong business alliances.

“A group of enterprises is seriously exploring this strategy. It means they will partner with American entities to produce directly in the U.S., with the support of skilled Vietnamese workers,” Hoai said.

Regarding raw material sources, the association executive noted that 70-80% of Vietnam’s timber materials are imported, including from the U.S.

“We import a significant amount of timber from the U.S., approximately $300-400 million annually. To help reduce the trade imbalance, we are prioritizing timber imports from the U.S., with plans to increase this to $600 million this year. This shows there’s a real basis for Vietnamese wood enterprises to consider linking up for production on the U.S. soil,” Hoai stressed.

Besides the U.S. market, Hoai pointed to other potential markets for renewal. For example, Japan currently imports mostly wood chips from Vietnam, but there is clear potential to increase exports of wooden furniture, which Japanese consumers are increasingly demanding.

“In addition to exploring new markets, refreshing existing ones is just as important. To make that happen, businesses truly need support and companionship from the government,” he concluded.

Source: Theinvestor

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