Wood industry seeks new export markets

Confronted with unpredictable developments in the export market, businesses, particularly in the wood industry, are striving to implement flexible policies. They are proactively seeking new export markets and avoiding dependence on just a few markets.

 Adapting to supply chain fluctuations

In 2025, the global situation is marked by numerous complex and unpredictable developments, including fluctuations in supply chains, high export freight rates, and changes in trade policies across various countries. These factors significantly impact investment, development, production, business, and export activities within the wood industry.

Mr. Nguyen Liem, Chairman of Binh Duong Furniture Association, assesses the current wood industry market and notes that the United States market accounts for over 50% of Vietnam's total export turnover for wood products. However, the heavy reliance on the US market presents challenges and risks for wood exports. Notably, the reciprocal tax policies of the Trump administration have introduced unexpected developments. As a result, businesses must adopt flexible and proactive strategies to ensure stable production and operations.

According to the latest report from Ministry of Agriculture and Environment, in the first five months of 2025, the export value of wood and wood products experienced the most significant increase in the Spanish market, rising by 64%. This trend is a positive sign for expanding the market for the wood industry. The business community is particularly interested in emerging markets such as the Middle East, India, China, Africa, and South America, all of which present considerable export potential. Among these, India—being the world's most populous country and with an economy ranked fourth globally—offers significant opportunities for consumption.

Mr. Huynh Quang Thanh, Director of Hiep Long Company Limited, highlights that the European Union market will soon face new regulations, including the Deforestation-Free Product Regulation (EUDR), which will take effect on December 31, 2025. Additionally, the carbon border adjustment mechanism (CBAM) and the directive on corporate sustainable development reporting (CSRD), which focus on greenhouse gas emission reduction and ecological design, will also significantly impact Vietnam's wood processing and export industry. Similarly, in the Japanese market, changes to the feed-in tariff (FIT) policy and regulations concerning the use of wood materials with verified origins will affect Vietnam's wood pellet export industry.

Currently, the price of imported raw wood is rising due to limited supply. The Vietnamese wood industry is also facing stiff competition from other major suppliers such as China, Malaysia, and Indonesia, who have advantages in technology and cost. To enhance their market position, businesses are opting to produce high-value-added products and consider re-evaluating products with lower added value. Additionally, it is essential for companies to assess input materials, certified wood, and growing area codes to prevent foreign wood businesses from labeling Vietnamese goods for export.

Towards sustainable development

By 2025, the Ministry of Agriculture and Environment aims to achieve exports of wood and forestry products totaling 18 billion USD. To reach this target, the Ministry is focused on enhancing the compliance capacity and certification of wood enterprises, which will boost their competitive advantages in the market and expand export opportunities. Adhering to standards will also help reduce legal and commercial risks for businesses, while improving trade promotion and branding efforts for wood products.

Mr. Tran Quang Bao, Director of Department of Forestry and Forest Protection at Ministry of Agriculture and Environment, emphasized the need for the wood industry to invest in raw material sources, in addition to establishing high-tech processing zones and expanding market share. He pointed out that promoting the trade of wood and wood products in major markets and developing online sales channels is crucial. Specifically, the industry must focus on developing large-scale timber plantations and sustainably managed forests, ensuring they are certified by FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of Forest Certification).

“Currently, the Department of Forestry is collaborating with different units to pilot the issuance of forest planting area codes in several northern provinces, with the aim of expanding this initiative nationwide. The purpose of these codes is to create a legal timber supply chain that ensures timber traceability in line with international standards. This initiative will also develop a method for measuring, reporting, and verifying (MRV) the carbon absorption and storage capacity of planted forests,” Mr. Tran Quang Bao added.

Mr. Vu Ba Phu, Director of Trade Promotion Department at Ministry of Industry and Trade, stated that the department will enhance the provision of real-time market information and export strategies for import and export enterprises in Binh Duong. In particular, it will concentrate on potential markets such as the European Union, the United States, Japan, South Korea, ASEAN, the Middle East, Africa, and Latin America.

 Reported by T.My, A.Tuan - Translated by Ngoc Huynh