Increased US imports propels Vietnam wood industry growth

Export of wood and wood products reached $3.5 billion in the first three months of 2024, dominated by the U.S. with $1.9 billion, up more than 36.4% year-on-year.

Demand for wood and wood products has risen from several important countries enabling a year-on-year increase of 25.4%, according to a new report by the Ministry of Industry and Trade (MoIT)

Exports to China reached $482.2 million, up 29.6%; Canada, $54.4 million, up 31.7%; and the U.K., $53.5 million, up 28.3%.

The wood sector in Vietnam has had a successful start to the year with higher orders and expedited production to meet schedules. Vietnam has become the largest wooden furniture supplier market to the U.S. market, the report notes.

However, Nguyen Chanh Phuong, vice chairman of the Handicraft and Wood Industry Association of HCMC (HAWA), has said that the surge hasn’t matched the wave of previous years. "Many businesses aren’t operating at full capacity and many people quit their jobs at the end of last year."

Price was another factor for Vietnamese businesses entering the U.S. market, since they have to compete with firms from other countries as well as companies in the U.S.

Firms have to deploy diverse marketing strategies, including participation in promotion events like fairs and create distinctive designs for their projects in order to do well, Phuong added.