Trump tariff impact on Vietnam's leading wood product manufacturer Duc Thanh 'not large'

Duc Thanh Wood JSC, a Vietnamese major producer of wooden children's toys, household appliances, and furniture, has pursued the goal of market diversification, not depending on any single market, from the very beginning, said Le Hai Lieu, its chairwoman.

Lieu made the statement at Duc Thanh Wood JSC’s 2025 AGM in Ho Chi Minh City on Saturday. Duc Thanh Wood JSC is listed on the HCMC Stock Exchange (HoSE) as GDT.

According to Lieu, despite global economic headwinds, including high inflation and reduced consumer demand - particularly in Europe - the company posted strong financial results.

In Asia, currency devaluations against the U.S. dollar also posed challenges, as they impacted dollar-based transactions. Asia continues to represent a significant portion of Duc Thanh Wood’s revenue, adding to the pressure.

To navigate these challenges, Lieu made a strategic decision early in 2024 to transfer all assets from the fifth factory in the southern province of Dong Nai to the third factory in the southern province of Binh Duong. This move was aimed at reducing operational costs and streamlining management.

As a result, Duc Thanh Wood achieved net revenue of VND 335.5 billion ($13 million) in 2024, an 8% increase year-over-year, reaching 92% of the year's target. After-tax profit reached VND60 billion ($2.31 million), a 65% increase, successfully meeting the year's target.

Notably, the company’s pre-tax profit margin stood at 23%, more than double the industry average of approximately 10%. This highlights the team's exceptional performance in a difficult year.

Outlook for 2025

Board member Truong Thi Binh shared that the export market is expected to remain challenging in 2025.

To counter this, Duc Thanh Wood will continue to strengthen its relationships with major partners and offer supportive pricing policies to retain existing customers.

A key focus will be the continued development of its wooden furniture line. Domestically, the company aims to maintain stability while accelerating product development and expanding its distribution network - particularly through online channels.

For 2025, Duc Thanh Wood has set financial targets of total revenue at VND362 billion ($14 million), up 8% year-on-year; and after-tax profit at VND65 billion ($2.51 million), up 8%.

Staying the course amid global uncertainty

Lieu emphasized that while U.S. trade policy remains uncertain, the company is closely monitoring developments, including potential changes to tariffs.

“We've built our business model around market diversification from the very beginning. It's more difficult, but it's also safer in the long run," added Lieu.

Despite a generally subdued market outlook, the company has not experienced a decline in orders. In fact, both revenue and profits increased in Q1/2025 compared to the same period last year.

Additionally, strong demand has allowed the company to be selective in accepting orders - choosing those with better pricing and safer payment terms.

“Just a few days ago, we had a U.S. customer ask us to expedite shipments before the 90-day tariff suspension ends,” Lieu shared. “I told them not to worry. Supporting our partners through tough times is our commitment. That’s why we’re confident in our growth plan for 2025,” she added.