According to the Planning and Investment Department of the Vietnam Rubber Group (VRG), meeting the growing demand for wood raw materials in the coming years requires a synchronized and strategic approach. This includes increasing the annual volume of liquidated rubber wood, prioritizing high-yield rubber clones, shortening plantation cycles, converting unsuitable rubber areas to alternative timber species, and strengthening purchasing and supply coordination mechanisms.
Projected Rubber Wood Supply (2021–2025): Nearly 40,000 Hectares
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The total raw material demand for the next five years is estimated at 1.6–1.8 million cubic meters of wood.
Rubber wood remains the primary input for the production of semi-processed blanks, laminated panels, and refined furniture wood. On average:
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Producing 1 m³ of dried blanks requires 5 ster of wood.
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1 m³ of laminated panel wood needs 10 ster.
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1 m³ of refined wood requires 12 ster (with 1 ster = 0.7 m³ of round wood).
Between 2021 and 2025, VRG projects production volumes of 411,000–437,000 m³, requiring 2.2–2.5 million ster, equivalent to 1.6–1.8 million m³ of raw rubber wood.
For MDF production, 1 m³ of MDF requires 1.7 tons of raw wood. Although VRG does not plan to expand MDF capacity during this period, production will continue to require 1.7–1.8 million tons of raw wood annually. Several MDF plants under VRG have already developed dedicated material zones, though their internal supply currently covers only a small fraction of total demand.
Coordinated Planning and Material Balance
The wood processing capacity plan within VRG serves as the foundation for ensuring balanced and sustainable supply. By 2025, the Group’s total designed processing capacity is expected to reach 1.7 million m³ per year. To sustain this output, an estimated 6.5 million ster of wood (equivalent to about 65,000 hectares of liquidated rubber) will be required.
However, current liquidation plans cover only 40,000 hectares, producing about 4 million ster of wood—or 800,000 ster annually. This meets only 30% of total demand, creating a significant supply gap.
To address the shortfall, VRG proposes:
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Expanding the mix of wood species used in processing—such as pine, acacia, and melaleuca.
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Intercropping and specialized plantation programs to establish future material zones.
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Enhanced purchasing and logistics systems for more effective sourcing and transport.
Management and Coordination Measures
The Planning and Investment Department recommends VRG:
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Approve and implement a long-term and annual liquidation plan.
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Issue updated guidelines on collection, logging, and utilization of residual rubber wood.
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Establish reporting and control mechanisms from raw input to finished product output to ensure traceability and legal compliance.
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Strengthen regional linkages between rubber plantations and processing factories for supply consistency.
Rubber companies are advised to:
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Prepare and submit annual liquidation plans in line with Group guidance.
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Adhere to schedules, complete origin verification and auction procedures, and facilitate access for wood processors.
Wood processing companies should:
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Coordinate closely with rubber companies in contracting, land transfer, and harvesting operations.
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Gradually shift production structures from semi-processed blanks to laminated, refined, and MDF products to maximize value addition.
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Apply modern and energy-efficient technologies to reduce waste and improve competitiveness.
Building Sustainable Raw Material Sources for the Future
VRG also emphasizes the creation of long-term material forests through:
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Intercropping and specialized plantations on non-rubber-suitable lands,
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Investment in research and biotechnology to improve species selection, planting, and forest management,
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Adoption of advanced processing technologies to enhance yield and develop high-value products.
The Group’s objective is to develop a sustainable, circular, and high-value wood industry—from plantation to processing to consumption—while ensuring the legality and traceability of timber sources. This strategy aligns with international wood standards and aims to help Vietnam’s rubber wood products penetrate major markets such as the EU, the U.S., and developed Asian economies.