FDI firms play significant role in Vietnam's wood industry: research
Foreign direct investment (FDI) businesses have played a significant role in Vietnam's wood industry, one of the country's biggest export earners.

At a wood processing factory. Photo courtesy of ITN Trading Company.
A 2024 report on FDI activities in Vietnam's wood industry showed that last year, the number of new FDI projects in the industry increased by 7% in quantity and 73.2% in investment capital year-on-year.
The number of share purchases rose by 27.8% year-on-year, while the number of projects with additional capital surged by 34.4%, according to the report which was released by Forest Trends - a research group under the Vietnam Timber and Forest Products Association (VIFOREST) and local timber associations.
Companies from mainland China led both in number of new projects and share purchases. Out of 61 new projects invested by 16 countries and territories, 25 were of mainland China with investments of $185.3 million, making up 41% and 35.7% of the totals, respectively. These projects focused on wood processing, including products such as beds, cabinets, tables, chairs, and sofas.
Taiwan followed with five new projects worth $129.62 million, accounting for 8.3% and 24.9% of the respective totals.
In 2024, the Vietnamese wood industry saw 46 share purchases with total value of $139.1 million, up 27.8% in number of transactions but down 0.5% in capital compared to 2023.
Among the 17 countries and territories with share purchases in the industry, mainland China had 19 transactions totaling $20.2 million, Taiwan saw seven with $75.84 million, and Hong Kong two with $25 million.
In terms of capital adjustments, in 2024, there were 47 cases with total additional capital of $139.35 million. This represented a 34.3% increase in number of adjustments and a 143.4% hike in capital year-on-year.
Singapore topped the list with 10 adjustments totaling $34.2 million, followed by mainland China with 11 adjustments amounting to $31.72 million.
The report anticipated that in 2025, the Vietnamese wood industry will continue to witness a shift in investment across regions and countries globally, with growing importance of the FDI sector's role as manufacturers seek to diversify risks and seize opportunities in new markets.
Industry experts noted that the substantial increase in FDI activity highlights the growing prominence of Vietnam’s wood industry, especially in view of the impact of U.S. policies in the next four years.
According to the report, in 2024, among over 4,200 businesses directly exporting wood and wood products totaling $15.89 billion, 777 FDI companies contributed $7.67 billion, accounting for 18.5% and 48.3%, respectively.
FDI businesses from mainland China, Taiwan, the British Virgin Islands, Singapore, and Japan led the pack in export value, with $5.87 billion or 76.5% of the FDI group's total.
Of these, mainland China posted $2.78 billion, up 34.4% year-on-year, making up 36.3%; Taiwan $1.14 billion, up 18.8%, representing 14.9%; and the British Virgin Islands $1.03 billion, up 17.1%, making up 13.5%.
Regarding export markets, Vietnam’s wood and wood products were exported to 168 countries and territories, with FDI companies shipping to 129 overseas destinations. The main export markets for FDI firms were the U.S., Japan, mainland China, the EU, and South Korea.
Their export value to these five markets in 2024 amounted to $7.05 billion, accounting for 91.9% of the total export value from FDI companies.
Experts from Forest Trends stated that amid escalating trade wars due to new U.S. import tax policies and corresponding retaliatory measures from trade partners, the trend of increasing FDI in Vietnam’s wood industry is inevitable.
This will bring about numerous opportunities but also significant challenges and risks, requiring closer cooperation between FDI businesses and Vietnamese companies.
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