Outlook for wood industry in 2025

Wood production and processing are among Vietnam's largest industrial sectors, boasting high export value. In particular, the Southeastern region is considered the country's “hub” for wood processing.

Vietnam’s wood industry, including the Southeastern region, holds promising prospects as demand from major markets—especially the United States—recovers. Additionally, businesses are expanding exports to other markets. However, challenges remain, particularly in the face of escalating trade defense measures and tariff disputes between countries and regions.

Promising growth amid potential fluctuations

In 2024, Vietnam’s wood and wood product exports reached nearly $16.3 billion, a 20.3% increase compared to 2023. Non-timber forest products contributed an additional $1 billion, bringing the total export value of the forestry sector to approximately $17.3 billion.

According to the Department of Forestry (Ministry of Agriculture and Rural Development), the outlook for wood and wood product exports in 2025 remains positive, with projections reaching around $18 billion.

With U.S. market revenues expected to grow to $300 billion, the country remains an attractive destination for Vietnamese furniture businesses. Despite being Vietnam’s largest export market, the country’s current share in the U.S. market remains relatively modest. By adopting innovative business strategies, Vietnamese firms could significantly improve profit margins. Meanwhile, the European Union and China also offer advantages as Vietnam leverages free trade agreements.

In the Southeastern region, Bình Dương province remains Vietnam’s leading wood export hub, accounting for 50% of the country’s total exports.

Huỳnh Thanh Vạn, Chairman of the Board at S Furniture JSC (Bình Dương), believes the industry’s $18 billion export target is achievable. Recent increases in orders for S Furniture and other companies indicate a strong growth trend, with the sector’s export value expected to rise by 25-30% this year.

However, businesses acknowledge that wood exports are influenced by several factors, including global economic recovery, consumer demand in major markets, trade policies, and the industry’s competitive capabilities. Additionally, intense competition from suppliers in China, Malaysia, and Indonesia requires Vietnamese enterprises to focus on high-value-added products.

Building professional design and marketing teams to promote Vietnamese brands directly in international markets is seen as a crucial strategy in the current landscape.

Strengthening internal capabilities and industry collaboration

Despite its potential, Vietnam’s wood industry faces limitations in internal capacity and international competitiveness. Furthermore, import market tariff policies pose additional challenges that businesses must navigate.

Nguyễn Phương, Vice Chairman of the Đồng Nai Wood and Handicraft Association and Director of Minh Thành Co., Ltd., emphasizes the need for businesses to strengthen their internal capabilities for sustainable development. Enhancing product quality, fostering industry-wide collaboration, and linking wood-processing associations across regions are key steps. These measures will help Vietnam’s wood sector meet the increasingly stringent global standards, ultimately boosting the industry’s brand value.

In Đồng Nai, the provincial government has introduced the Project on Developing the Multifunctional Value of Forest Ecosystems (2025-2050), promoting sustainable forestry and resource use. By 2025, Đồng Nai aims to achieve $2.5 billion in forestry product exports, increasing to $2.8 billion by 2030. The province encourages businesses, individuals, and communities to invest in and benefit from sustainable forest ecosystem development.

Meanwhile, Bình Dương, Vietnam’s largest wood-exporting province, is taking proactive measures to boost exports from the start of the year.

According to Bùi Như Việt, Vice Chairman of the Bình Dương Wood Processing Association, efforts are underway to enhance workforce training and improve technical skills for employees in the sector. Addressing labor shortages in key technical roles—such as design and modern machinery operation—will help improve productivity and product quality, strengthening Vietnam’s wood industry in the global market.

Reported by V.G