Vietnam's wood firms must act quickly in response to Trump tariffs: association

Digital transformation and increased deep processing are key strategies for Vietnamese wood enterprises to cope with the new tariffs imposed by President Donald Trump, said Ngo Sy Hoai, vice president of the Vietnam Timber and Forest Products Association.

President Trump on April 2 announced massive 46% tariffs on imports from Vietnam. Hoai described the tax rate as “shocking,” not only for Vietnam but also for U.S. companies and many foreign-invested enterprises in the country.

"However, we believe there is still room for negotiations," Hoai told The Investor.

Two groups of Vietnamese wood products are “nervous”

In light of Trump's new tariffs, Hoai explained that Vietnamese wood exports to the U.S. are currently divided into two categories.

First, wooden panels which could face the 46% tax. In 2024, the export value of this product to the U.S. reached nearly $800 million.

Second, there are wood products and deep-processed items, such as furniture (kitchen cabinets, dining tables, bedroom sets, dressing tables, garden tables, and chairs). These products from Vietnam are known for their high quality, reliable sourcing, affordability, and popularity in the U.S. market.

This category is currently under investigation under section 232 of the U.S. Trade Expansion Act of 1962, which began on March 1, 2025. According to this provision, any imported product that poses a threat to the U.S. industry or national security can be subject to tariffs or import quotas.

This group has accounted for over 90% of Vietnamese wood exports to the U.S. in recent years, and it remains unclear whether these products will be taxed and, if so, at what rate.

Given these uncertainties, Vietnamese enterprises must stay alert, engage in negotiations with U.S. partners based on signed agreements, and find solutions that are mutually beneficial while maintaining trust, he added.

Wood enterprises must adapt even before Trump’s new tariffs take effect

In the long term, Vietnamese enterprises must implement strategic changes, Hoai highlighted.

First, they need to increase deep processing to add more value to their products, shifting the focus from export volume to greater product quality and sophistication. This is an opportunity to reflect on the past and improve business operations.

Second, Vietnamese wood enterprises should undergo a digital transformation, embrace innovation, and take a more proactive approach to design, branding, and marketing.

"Moving away from simply processing foreign orders, they should aim to build brands, develop unique products, and promote them globally."

In 2024, export turnover for wood products reached $16.25 billion, surpassing the previous record of $15.8 billion set in 2022 by nearly $500 million. The industry is aiming for an export turnover of $18 billion by 2025.