The Vietnam Timber and Forest Products Association (VIFOREST) assesses that the country’s wood industry is facing both significant opportunities and emerging challenges as global export markets undergo new transformations.
1. Quick and Timely Responses – A Key to Seizing Opportunities
Vietnam is currently the 8th largest trading partner and 4th largest export market of the United States within ASEAN. Conversely, the U.S. is Vietnam’s second-largest trading partner and largest export destination.
In particular, over 50% of Vietnam’s wood and wood product exports are destined for the U.S. market.
However, U.S. protectionist economic policies and potential adjustments to import tariffs will pose new challenges for Vietnam’s wood exporters — including increased competition from both domestic U.S. manufacturers and foreign suppliers, as well as heightened trade risks related to traceability and compliance.
Meanwhile, the European Union (EU) — another major export destination that has consistently maintained double-digit growth for Vietnamese wood products — is introducing new trade regulations unfavorable to exporters. The most notable is the EU Deforestation Regulation (EUDR), which will come into effect at the end of 2025, requiring strict traceability for all wood-based products.
On a broader scale, the possibility of a new global trade war could disrupt supply chains and reduce export demand, emphasizing the need for Vietnamese wood exporters to be flexible, proactive, and adaptive to shifting market conditions.
The EU’s decision to postpone EUDR enforcement until December 30, 2025, for large companies and June 30, 2026, for SMEs provides valuable preparation time for Vietnamese businesses — a much-needed advantage amid current economic challenges.
At the same time, the global shift toward green consumption and sustainable materials is opening new opportunities for Vietnam’s wood industry. Exporters who can meet eco-friendly standards and leverage digital transformation and supply chain transparency will gain a strong foothold in developed markets.
2. Building Competitive Advantage: The Core of Survival
Vietnam currently harvests 22–23 million m³ of plantation timber annually, with over 500,000 hectares of forests certified under sustainable forest management schemes. The forestry sector aims to expand this area to 1 million hectares by 2030.
According to Tran Quang Bao, Director General of the Department of Forestry, besides expanding high-tech processing zones and boosting exports, Vietnam must invest more heavily in sustainable raw material areas — particularly in large-timber plantations certified by FSC or PEFC.
The department is also piloting forest origin coding systems in several northern provinces, with plans for nationwide implementation. These codes are the foundation for legal timber chains and traceability systems, ensuring compliance with international standards while supporting carbon measurement and verification for forest carbon sequestration.
3. Enhancing Transparency and Sustainable Governance
Ngo Sy Hoai, Vice Chairman and General Secretary of VIFOREST, emphasizes that competitiveness is the lifeline of enterprises. Government initiatives to promote sustainable forest certification and traceability systems are being strengthened to ensure transparency throughout the supply chain.
In collaboration with international organizations, the Vietnamese government is deploying modern digital traceability technologies, enabling comprehensive monitoring from harvesting and transportation to final consumption.
These efforts not only enhance the export value of forest products but also improve Vietnam’s position in global markets. To stay competitive, wood processors and exporters must ensure legal origin compliance, high-quality design standards, and competitive pricing.
Businesses are encouraged to embrace digital transformation, build transparent traceability systems, and comply with international environmental standards. Strong cooperation between enterprises, industry associations, and government agencies will be essential to adapt to foreign trade defense measures and avoid losses due to protectionist policies.
Additionally, accurate certification of origin remains a vital tool in combating commercial fraud. Vietnamese exporters must be prepared to handle anti-dumping investigations or trade defense cases by improving legal readiness, risk management, and green manufacturing practices.
By integrating sustainable production, digital traceability, and eco-certification, Vietnam’s wood industry can strengthen its resilience and competitiveness, paving the way for a more sustainable and globally recognized export sector.