Green development to boost competitiveness and build brand value for Vietnam’s wood industry

Processed wood is among Vietnam’s most valuable export commodities, with its wood products now available in many major international markets. In the context of global sustainable development and environmental protection efforts, key export markets, especially developed countries, are imposing increasingly strict requirements on manufacturing industries. This trend urges businesses to adapt in order to strengthen their competitiveness and operational capacity.

Dong Nai currently ranks second nationwide in wood production and export. Representing local wood enterprises, the Dong Nai Wood and Handicrafts Association (DOWA) has been actively collaborating with relevant organizations and authorities to support its members in meeting new standards. Dong Nai weekend edition recently spoke with Nguyen Phuong, Vice Chairman of DOWA and CEO of ViTaNa Co., Ltd. (located in Giang Dien Industrial Park), to discuss the importance of green growth and the prospects of the wood industry.

Requirements for sustainable business development

Q: Sir, greenhouse gas inventory is a critical issue that all businesses, particularly those in the wood industry, must address to comply with Vietnamese law. Beyond legal compliance, what role does this task play for companies today?

Nguyen Phuong, Vice Chairman of the Dong Nai Wood and Handicraft Association

The State has now issued regulations requiring greenhouse gas inventories for businesses, starting with large manufacturing enterprises. Globally, particularly in Europe, there is growing concern over carbon emissions. In the future, the buying and selling of products will need to account for carbon consumption. This endeavor will be especially important and mandatory for the wood industry.

In the first 8 months of 2025, despite numerous challenges, Vietnam’s wood industry maintained steady growth, reaching an export value of over 11.1 billion USD. Notably, exports to the United States increased by 10.3% year-on-year, indicating a strong recovery in this key market. This accomplishment creates positive momentum toward reaching the industry’s full-year export goal of 18 billion USD.

A positive sign in the wood industry is that many businesses have proactively begun conducting greenhouse gas inventories to prepare for compliance with sustainable environmental standards. This effort is no longer limited to large enterprises, as it now includes a growing number of small and medium-sized firms.

In addition to green transition initiatives, many are also accelerating digital transformation, forming what is known as a “dual transformation model” to enhance efficiency and support long-term emissions reduction.

This undertaking reflects a clearer awareness among businesses of the importance of sustainable practices. As a result, they are shaping appropriate strategies and solutions to integrate environmental standards into production, improve product quality, and meet the increasingly stringent requirements of global markets.

Q: Would you say this is a key factor in boosting the confidence of Vietnamese enterprises in the global marketplace?

- Yes, absolutely. Embracing green production voluntarily opens up many opportunities for enterprises in demanding international markets. In doing so, businesses can better assert the value of their products and avoid being pressured on pricing.

DOWA is currently working with the International Labour Organization (ILO) to implement initiatives aimed at reducing greenhouse gas emissions for businesses. Our company, ViTaNa, is among the pioneers in this effort. In practice, partnering with the ILO has delivered tangible benefits: our carbon reduction activities have helped lower energy consumption and increase productivity during the production process.

For that reason, wood enterprises must begin shifting away from traditional practices toward low-emission production models. Greening the supply chain should be seen as an opportunity for transformation, not as a challenge.

Q: In addition to green development, what should businesses focus on to build strong brand identities?

-  There are many factors, but innovation and breakthroughs in branding on the international stage are crucial. Despite considerable effort in recent years, Vietnam’s furniture industry still lacks significant breakthroughs and remains largely dependent on OEM production for foreign partners. Moving forward, it is essential to build professional teams in product design and marketing so that companies can sell directly under their own brands, not just manufacture for others. This shift must be more strategic and aggressive if we want to create sustainable value.

Positive long-term outlook

Q: How do you assess the outlook for the wood industry, particularly exports, given the current volatility in global trade?

-  From now until the end of 2025, the market may see some slight slowdown. However, the long-term growth prospects remain positive. The key lies in how businesses strategize and compete on quality and pricing. Of course, the industry has been heavily impacted by global market fluctuations. Exports to the U.S. alone account for over 50% of Vietnam’s total wood export value, which places significant pressure on companies to closely monitor market trends and trade policies from importing countries. Only then can they respond flexibly and effectively adapt to changing conditions.

Investing in modern technology is a key solution for enhancing product quality and strengthening the competitiveness of the wood industry. Photo: Illustration

For the wood sector in particular, I believe there is still very significant potential for stronger growth. Global demand is large, yet Vietnam’s share in supply remains relatively small. To increase market share, the wood industry must organise production in a more professional, lean, and efficient manner. Competition for labour will increase, and the advantage of cheap labour will soon disappear. Only by raising productivity can companies reduce costs and provide better income for their workers.

Q: What about industry-wide linkage, Sir?

- That is essential. Enterprises, associations, and local authorities must collaborate to strengthen internal capacity. In addition to improving product quality, connecting businesses and linking wood-processing associations across regions are crucial. These measures will help Vietnam’s wood manufacturing sector meet the world’s increasing standards, enhance the reputation of Vietnamese wood products on global markets, reinforce existing strengths, and develop new competitive advantages.

Q: What solutions does Dowa offer to support its member companies?

- DOWA is working with the International Labour Organization (ILO) and the Swiss Import Promotion Programme (SIPPO) to help companies in our industry access and familiarize themselves with technical wood products and develop new markets. We are also creating a platform (a digital member-connection platform) for DOWA’s members, funded by international organizations. The project aims to enhance capacity in collecting and managing member information, promote global trade, increase the digital presence of member enterprises, and foster both the development of the industry and the community of wood businesses in Dong Nai. Additionally, the Association and its member companies will carry out initiatives on technical wood, identify sustainable development trends, and explore market potential for technical wood products in the future.

* Thank you very much!

By Vuong The - Translated by Hong Van, Minho