Vietnam’s wood processing and forest product export industry continues to affirm its role as a “trump card” of the national economy, making a remarkable contribution to export performance.
According to the latest report, export turnover reached a record USD 16.25 billion in 2024, up 20.3% year-on-year — an impressive achievement. Of that, wood materials and furniture accounted for USD 15.89 billion, up 20.1%.
Looking ahead, the forestry sector has set an ambitious target for 2025: to hit USD 18 billion in exports, marking another potential record.
Positive “Green” Signals in Early 2025
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The first months of 2025 have brought encouraging signals for Vietnam’s wood industry.
The United States, which represents 56% of total exports, remains a key market, showing stability and recovery potential amid strong reconstruction demand following forest fires and a resilient economy.
The European Union (EU) is opening even wider doors, thanks to the EU–Vietnam Free Trade Agreement (EVFTA), which continues to deliver significant tariff advantages, enhancing competitiveness for Vietnam’s processed wood products.
Meanwhile, China’s rapid urbanization and construction boom are driving up demand for imported wood. Yet these opportunities come with stricter requirements for legal sourcing and traceability, compelling Vietnamese enterprises to step up compliance and certification.
Headwinds and Heavy Obstacles on the Path to Global Reach
The industry’s journey forward is not without hurdles.
Growing international regulatory pressure—particularly from the EU Deforestation Regulation (EUDR)—poses a major barrier. Companies must ensure rigorous traceability of timber origin, requiring substantial investment in digital monitoring systems and governance technology.
In the U.S. market, protectionist trade policies under the new administration have created fresh risks, including potential anti-dumping duties and trade-defense investigations. The absence of official recognition for Vietnam as a market economy further weakens the position of Vietnamese exporters in such cases.
Regional competition is intensifying as China, Malaysia, and Indonesia leverage scale and cost advantages. Simultaneously, logistics costs—especially soaring ocean freight rates—and raw-material price spikes of up to 40% are eating into profit margins.
Human Resources: A Strategic Bottleneck
The wood industry employs over 500,000 direct workers and supports over one million people. However, most remain low-skilled laborers.
To reach the USD 20 billion export goal by end-2025, the sector will need roughly 106,800 university-trained professionals and 445,200 skilled technicians — a serious challenge for workforce training and upskilling.
The foundation of sustainable growth lies in developing high-quality human resources through close cooperation between enterprises, universities, and vocational institutions. Specialized training in design, machine operation, automation, and international standards must become a strategic priority.
Digital Transformation and Green Transition: Twin Engines of Competitiveness
To seize golden opportunities and overcome looming challenges, Vietnamese wood processors must move decisively on strategic transformation.
In the digital era, technological modernization is the key to optimizing production: digitalized warehouse management, smart inventory tracking, and advanced ERP systems minimize losses and cut costs. Investing in CNC automation and smart manufacturing improves productivity and ensures product uniformity.
At the same time, compliance with global environmental and social standards is the industry’s “green passport” for international integration.
Ensuring 100% legally sourced timber and maintaining certifications such as FSC, CoC, BSCI, and SMETA are essential to access demanding markets like the EU and the U.S.
Further investments in low-emission production, eco-friendly adhesives, and wood-waste recycling not only demonstrate environmental responsibility but also strengthen global competitiveness.
Collaboration with organizations such as the Vietnam Timber and Forest Product Association (VIFOREST) and the China Forest Industry Association is vital for building a resilient and sustainable supply chain.
Moving Up the Global Value Chain
To thrive globally, Vietnam’s wood industry must enhance value addition and competitiveness by shifting from raw exports to high-tech, design-driven products — such as custom furniture, composite-material wood, and smart interiors.
Building a strong “Vietnam Wood” brand will reinforce reputation and product value, while expanding e-commerce and international trading platforms can unlock new customer bases.
Greater collaboration among businesses and industry associations will foster synergy, resource sharing, and stronger collective power to compete with regional giants.
Risk Management and Market Diversification
Sustainable development also demands robust trade-risk management and market diversification.
Equipping enterprises with legal knowledge will help them respond effectively to trade-defense actions. Meanwhile, expanding exports beyond traditional markets to Japan, South Korea, and the Middle East will reduce dependency and increase long-term stability.
Participation in global trade fairs remains a crucial channel for networking and discovering new partners.
Toward a Promising New Chapter
The year 2025 opens a new and promising chapter for Vietnam’s wood-processing industry on its journey to achieve its ambitious export targets.
Realizing this immense potential will require proactivity, innovation, and collaboration across the business community.
With strong government support, active trade promotion, and the collective determination of enterprises, Vietnam is fully equipped to consolidate its position as one of Asia’s leading wood-processing and export hubs, contributing significantly to the nation’s economic growth.