Increasing investment to capitalize on wood industry's prospects

Vietnam currently ranks among the top five largest wood exporters globally. The Vietnamese wood and furniture industry is undergoing a robust recovery, maintaining its prestigious standing in the global market.

International buyers visit products at the Ho Chi Minh City Export Furniture Fair (HawaExpo 2026) held in Ho Chi Minh City on March 4. Photo: Vuong The

In the context of many changes in the international market, greening, digitalization, and sustainable development trends are becoming essential requirements for businesses in the industry to strive for and exploit new growth potential.

New export milestone

The year 2025 marked an important milestone as the export turnover of wood and wood products reached nearly 17.3 billion USD, surpassing the 17-billion-USD threshold for the first time, a 6% increase compared to 2024. In the context of many large markets not recovering uniformly, and countries imposing increasingly strict standards on traceability, emissions, and sustainable development, this result is a great effort and endeavor by businesses as well as the entire industry.

Vietnamese wooden products are now present in 45 markets worldwide, affirming an increasingly clear position on the global trade map. The market structure shows a high concentration on 3 key partners: The United States, Japan, and China, accounting for about 65% of the total turnover of the entire industry. The United States is Vietnam's largest market for wood and wood products, accounting for 9.06 billion USD, equivalent to about 45% of total turnover, an increase of 4.1%.

The strategic turning point for Vietnam's wood production today is that the room for extensive growth is gradually narrowing, and global standards are becoming increasingly stringent, making the transformation of production, investment in product design, brand building, and technology application inevitable.

In Dong Nai alone, wood exports reached nearly 2.7 billion USD, a staggering 34.8% increase over 2024. The province ranks second nationwide in wood exports, and timber remains its fourth most valuable export. Businesses in the industry have made great efforts in production, business, and product consumption in both domestic and export markets.

In parallel with boosting exports, the value and product structure of Vietnam's wooden furniture products are also gradually increasing. The wooden furniture group currently accounts for the largest share of total turnover, reflecting improvements in design and processing capabilities, as well as Vietnamese businesses' ability to meet orders with high technical requirements. This feature helps the wood industry gradually improve its position in the global value chain.

According to experts, entering 2026, the entire industry expects to continue to maintain its position and recover positively. However, there are still challenges ahead. Technical barriers such as the EU Deforestation Regulation (EUDR), reciprocal tax policies, anti-dumping investigations from the US, along with fluctuations in shipping costs and natural disasters, can disrupt the supply chain...

Exploiting new prospects

Despite the difficulties, the prospects for the timber industry remain broad. However, businesses need to know how to leverage their strengths and pursue sustainable development.

According to Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency (Ministry of Industry and Trade), the timber industry is facing increasingly complex and multi-dimensional challenges. The requirements for quality, traceability, and sustainable development from major markets are becoming stricter, forcing businesses to accelerate the transition to green production and reduce emissions.

Experts say the current challenge for the timber industry is to build its own brands, beginning with product design. For many years, most Vietnamese wood businesses have developed under an order-based manufacturing model for international brands. This model has helped businesses build large-scale production capacity, optimize costs, and maintain a stable flow of orders. However, most of the added value still lies in design, branding, and distribution, links that Vietnamese businesses rarely control.

Therefore, over the long term, businesses need to invest more in design, branding, and market data. With their existing capabilities and scale, Vietnamese wood businesses can expand their market share in segments where Vietnam has an advantage, rather than entering into direct competition with other strong countries.

Besides exports, to further develop its capabilities, the wood industry needs to focus on exploiting the potential of the domestic market of 100 million people, which serves as a solid foundation against international fluctuations. Currently, domestic consumption trends have changed significantly, forcing businesses to research consumer preferences and stay up to date with design trends to develop suitable products. In addition, product communication and demand stimulation through diverse sales channels, flexibly combining traditional and modern methods, are crucial. According to Vo Quang Ha, Vice Chairman of the Dong Nai Wood and Handicraft Association, the domestic market is large, and Dong Nai is a concentrated production area for civil wood products, with a large area of planted forests. Promoting the domestic market will help better utilize wood from planted forests within the country and the province.

By Vuong The – Translated by Mai Nga, Minho