In the wood-processing sector, the Vietnam Rubber Group (VRG) has set ambitious production plans for 2024, targeting a total output of over 1.247 million cubic meters of various wood products—sawn timber, laminated panels, refined wood, and MDF boards—representing 106–189% of the 2023 performance. This plan reflects both the Group’s goals and its confidence in the industry’s recovery and growth potential.
Expanding Market Reach
At the 2023 VRG Wood Processing Conference, experts emphasized that global trade uncertainties will persist in 2024 due to escalating geopolitical and economic tensions among major economies. Trade wars and protectionist trends are expected to pose challenges for Vietnam’s exports, including the wood-processing industry.
Despite these headwinds, VRG General Director Le Thanh Hung directed member units to maximize their strengths, reassess production capacities, and restructure operations. He urged businesses to focus on sustainable, certified raw material sources, develop new product lines such as wood pellets, and strengthen digital transformation and trade promotion across multiple channels.
A successful example is Thuan An Wood Processing JSC, which achieved outstanding results in 2023 by actively seeking new customers through trade fairs and e-commerce platforms. The company continuously updates new designs and product models on its 3D showroom website, enhancing customer engagement. According to CEO Le Thi Xuyen, “These efforts not only helped us retain existing clients but also expand our customer base. In the last months of 2023 alone, we secured five new contracts for 2024, and production is now running overtime to meet deadlines.”
Similarly, Dong Hoa Wood Co., Ltd. (Rubico Dong Hoa) has shortened product sampling time from 2–3 weeks to 7–10 days and expanded exhibition participation in Vietnam, China, Australia, New Zealand, Qatar, the U.S., and Canada, increasing its regular client base from five to eight major customers.
For MDF products, VRG Kien Giang MDF JSC continues to focus on high-quality, customized production, maintaining strong relationships with existing customers and accepting special-formula small-batch orders that other firms cannot handle. The company also sees Cambodia as a promising growth market, with plans to expand promotion efforts to match local consumer preferences.
Long-Term Development Strategy
Aiming for sustainable growth, VRG is currently developing a unified VRG brand identity for its wood-industry subsidiaries, leveraging the Group’s strong market reputation. Member companies are encouraged to label their products with identifiers such as “Member of Vietnam Rubber Group” or “Product of VRG.”
The Group’s Market and Business Division is building a shared digital database and product showcase website, creating a trusted online channel to promote VRG’s main products and enhance brand visibility. Targeted trade promotion programs will continue to focus on key export markets and major clients.
According to VRG’s Industry Division, domestic and international demand for wood pellets is expected to rise sharply. As Vietnam pursues its net-zero emissions goal by 2050, biomass fuels—particularly pellets—will gain priority under supportive government mechanisms. This presents a major opportunity for VRG to expand into clean-energy wood products, aligning business goals with environmental sustainability.
To ensure raw-material stability, VRG has developed a comprehensive replanting and wood-harvesting plan, balancing supply and sustainability. Beyond domestic sources, large volumes of rubber wood will become available from Cambodia and Laos after the first planting cycle. VRG’s Investment Planning Division has proposed a phased development roadmap:
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Phase 1 (2024–2026): Focus on producing sawn timber and woodchips for export to Vietnam.
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Next phase: Consider establishing a wood-pellet plant in Cambodia (potentially in partnership with foreign buyers).
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Post-2026: Based on feasibility studies, expand into laminated and refined wood production within the region to reduce logistics costs and serve local and export markets efficiently.