In the face of unpredictable developments in the export market, businesses in general and timber enterprises in particular are striving to have flexible policies, proactively looking for new export markets, avoiding focusing too much on a few markets.
Wood production activities at Lam Viet Joint Stock Company
Adapt to supply chain fluctuations
In 2025, in the context of the world situation with many complicated and unpredictable developments, supply chain fluctuations, high freight rates for export goods, changing trade policies of many countries are having a great impact on investment in development, production, business and export activities of the timber industry. Assessing the current wood industry market, Mr. Nguyen Liem, Chairman of the Binh Duong Woodworking Association, said that currently the US market accounts for more than 50% of the country's total export turnover of wood products. Too much focus on the US market is also a challenge and risk for wood exports. In particular, the reciprocal tax policies of President Donald Trump's administration always have unexpected developments. Therefore, businesses need to make efforts to have flexible and proactive policies accordingly to ensure production and business stability.
According to the latest report of the Ministry of Agriculture and Environment, in the first 5 months of 2025, in the group of 15 largest export markets of Vietnam's wood industry, the export value of wood and wood products increased the most in the Spanish market, with an increase of 64%. This is a very positive signal in the direction of expanding the wood industry market. According to the assessment of the business community, markets such as the Middle East, India, China, Africa, and South America are having large export spaces. Businesses also pay special attention to India, which is the most populous market in the world, India's economy ranks 4th in the world, so the potential for consumption of goods in this market is very high.
According to Mr. Huynh Quang Thanh, Director of Hiep Long Co., Ltd., currently, with the European Union market, the Regulation on Non-Deforested Products (EUDR) will be officially applied on December 31, 2025, the Carbon Border Adjustment Mechanism (CBAM), the Directive on Corporate Sustainability Reporting (CSRD) related to reducing greenhouse gas emissions, eco-design... will also have a significant impact on Vietnam's wood processing and export industry. For the Japanese market, changes in the subsidized electricity price (FIT) policy, regulations on the use of wood materials with clear origins will have an impact on Vietnam's export wood pellet processing industry...
"Currently, the price of imported raw wood has increased due to limited supply. In addition, Vietnam's wood industry is subject to fierce competition from other major suppliers, such as China, Malaysia, Indonesia - also major wood exporters, with advantages in technology and cost. In order to reposition the market position, enterprises choose to produce products with high added value for investment cooperation, for products with low added value, it is necessary to reconsider. At the same time, enterprises need to evaluate the source of input materials, wood with certificates and planting area codes, avoiding the situation of foreign wood enterprises labeling Vietnamese goods for export," Mr. Huynh Quang Thanh shared.
Towards sustainable development
By 2025, the Ministry of Agriculture and Environment strives to export wood and forest products to reach 18 billion USD. To achieve this goal, the Ministry of Agriculture and Environment supports improving the compliance capacity and obtaining certification for timber enterprises, contributing to strengthening competitive advantages in the market and expanding export opportunities. Compliance with the standards also helps to reduce legal and commercial risks for businesses; at the same time, strengthen trade promotion and branding for wood products.
Mr. Tran Quang Bao, Director of the Department of Forestry and Forest Protection (Ministry of Agriculture and Environment), said that in addition to building high-tech processing zones, expanding export market share, proactively promoting trade in wood and wood products in main markets, developing sales through e-commerce channels, The wood industry needs to pay more attention and invest in the raw material area. Specifically, the timber industry needs to develop more than large timber plantations, forests that are sustainably managed and FSC certified (a voluntary standard, developed by the Forest Stewardship Council (FSC) to promote responsible forest management globally) or PEFC (Forest Certification Program, is a leading global alliance of national forest certification systems).
"Currently, the Department of Forestry and Forest Protection has coordinated with units to pilot the issuance of afforestation area codes in some northern provinces, moving forward to expand nationwide. The task of this code is to develop a legal timber supply chain, ensure timber traceability to adapt to international requirements, as well as develop a method of measurement, reporting and appraisal (MRV) to determine the ability to absorb and store carbon in planted forests," Mr. Tran Quang Bao added.
Based on the experience of supporting trade promotion in other localities in the region, Mr. Vu Ba Phu, Director of the Trade Promotion Agency (Ministry of Industry and Trade), said that in the coming time, the department will strengthen the provision of real-time market information and export strategic orientation for exporting enterprises. In particular, the department will focus on potential markets such as the European Union, the United States, Japan, South Korea, ASEAN, the Middle East, Africa, Latin America, etc.
Mr. Vu Ba Phu, Director of the Trade Promotion Agency: In the near future, Ho Chi Minh City. Ho Chi Minh City, Binh Duong province and Ba Ria - Vung Tau province are consolidated, with a strategic location, a modern seaport, great production and export potential, Ho Chi Minh City. The new Ho Chi Minh City will be one of the most important drivers of international economic development and integration of the country. The Ministry of Industry and Trade, through the Department of Trade Promotion, commits to accompany more closely with local businesses in the development process, not only with traditional trade promotion programs, but also with digital transformation support, strategic consulting, new market development, etc training to improve capacity and promote innovation in trade promotion.
