Like other sectors, wood production and processing companies under the Vietnam Rubber Group (VRG) have built multiple post-pandemic recovery strategies to enhance competitiveness in both domestic and export markets. The growth potential of Vietnam’s wood-processing industry remains significant, and VRG plans to continue increasing investment in the sector throughout 2022 and beyond.
Building Growth Targets Beyond 2021 Performance
In recent years, the wood industry has become one of VRG’s key revenue drivers. In 2021 alone, it contributed 17% of total revenue and 16% of total profit across the Group.
As one of VRG’s five strategic sectors, wood processing is projected to continue expanding despite challenges from the lingering effects of the COVID-19 pandemic. For 2022, VRG set ambitious growth targets:
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Total revenue: VND 8.357 trillion (up 15% vs 2021)
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Pre-tax profit: VND 824 billion (up 6% vs 2021)
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Total output: 1.39 million m³ of various wood products
This includes:
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293,260 m³ of sawn wood billets (+22% YoY)
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12,200 m³ of finger-jointed panels (+42% YoY)
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12,340 m³ of finished furniture (same as 2021)
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1,071,792 m³ of MDF/MFB (+7% YoY)
Currently, 12 VRG subsidiaries have achieved VFCS/PEFC-FM certification, while Dau Tieng Wood JSC and Tay Ninh Wood JSC are finalizing PEFC Chain of Custody (CoC) assessments.
Once completed, VRG will establish a sustainable value chain — from rubber plantations to certified wood processing — fully compliant with international forest certification standards and global trade requirements, strengthening the legal traceability of all VRG wood products.
Mr. Trương Minh Trung, VRG Deputy General Director, said:
“VRG will hold a sector-wide conference to assess wood-sector performance and propose restructuring solutions. The focus will be on improving production efficiency at sawmills, finger-joint panel and finished furniture factories, while reorganizing underperforming subsidiaries. The Group will provide technical, operational, and market support to ensure the entire wood-processing system operates efficiently.”
Mr. Trung also emphasized the importance of digital marketing and branding:
“Companies should strengthen product promotion, maintain key customers, and attract new clients through active marketing, website updates, and industry publications. The wood sector will also organize exchange visits among factories to foster collaboration and build a unified VRG wood brand in both domestic and international markets.”
Flexible Strategies to Stay Resilient
Despite ongoing challenges, VRG subsidiaries are determined to adapt and seize growth opportunities. Rather than waiting for favorable conditions, they are developing flexible contingency plans to sustain operations and meet dual goals of production and safety.
Thuan An Wood Processing JSC — a major unit in Bình Dương — demonstrated strong resilience during pandemic disruptions in 2021. Although production was temporarily halted, the company still achieved its targets thanks to effective crisis management.
For 2022, Thuan An aims for:
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Revenue: VND 570 billion (+7% YoY)
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Pre-tax profit: VND 21.7 billion (+10% YoY)
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Dividend payout: 11% (up 30% from 2021)
According to Ms. Lê Thị Xuyến, CEO of Thuan An Wood:
“Our key strategy is to integrate Industry 4.0 technologies into production management and product development. We’re applying 3D visualization in product marketing, maintaining ISO 9001:2015 and FSC-CoC standards, and advancing lean manufacturing through the SCORE Project and Japan’s 5S system to eliminate waste and improve efficiency.”
To secure raw materials amid intensifying competition, VRG’s wood subsidiaries are partnering with rubber companies to interplant fast-growing timber species on non-suitable rubber lands. They are also improving market intelligence sharing, technical cooperation, and production coordination to minimize internal competition and maximize efficiency across the MDF network.
Key Players Continue to Drive Expansion
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VRG MDF Kiên Giang JSC plans to produce 100,000 m³ of MDF and sell 99,000 m³ in 2022, aiming to exceed targets by 5–10%. The company is also expanding exports via e-commerce platforms and traditional channels.
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VRG DongWha MDF, one of Vietnam’s largest MDF producers, set targets to increase MDF output by 10% and MFB by 9%. Exports are projected to rise 13% for MDF and 6% for MFB. The company is optimizing every production stage, improving labor allocation, and controlling costs amid rising input and logistics expenses.