Vietnam's wood industry enjoys export surge, sustainability 'uncertain'
Vietnam's exports of wood and wood products reached $2.4 billion in Jan-Feb 2024, up 43.8% year-on-year. But the growth in orders is not enough for many businesses to run at full capacity as happened in 2019-2021; and whether the two-month surge can be sustained through the year remains uncertain, said Nguyen Chanh Phuong, vice chairman of the Handicraft and Wood Industry Association of HCMC (HAWA).

Nguyen Chanh Phuong, vice chairman of the Handicraft and Wood Industry Association of HCMC (HAWA). Photo courtesy of the association.
The value of wood and wood products exported in January 2024 was $1.47 billion, up 83.1% year-on-year. With $820 million, the U.S. market made up 56% of the total, marking an increase of 124%. Can you comment on this?
Vietnam's top export destination for wood and wood products is the U.S. This market has expanded favorably this year. Despite the enormous demand for housing in the U.S., many people are reluctant to purchase homes due to high mortgage rates. The furniture market will grow when mortgage rates remain constant and real estate demand increases.
The first two months of the year saw a 44% growth in exports. Is this sustainable?
It is very difficult now to discuss stable growth because of the many variables that affect it, including geopolitics. For instance, Europe is in an unstable state as a result of the Russia-Ukraine conflict.
Where are the markets that Vietnamese enterprises can expand into, then?
Actually, Vietnamese businesses are finding new markets. The Indian market grew by 250% in 2023, although the absolute value is small. However, it is a market that Vietnamese firms may capitalize on. Malaysia’s expansion in India indicates the potential. They have discovered different ways to market their products, including offering low-cost items.
China and Muslim-majority countries are both good growth markets. Vietnam has a few significant enterprises engaged in the Muslim market. Many Muslim businesses are also very interested in the Vietnamese market. The number of Muslim businesses registered for the Hawa Expo, which took place from March 6-9, demonstrates this.
How are Vietnamese firms responding to the surge in orders?
We talk about the surge in orders, but it isn't a wave like previous years. Many businesses have orders, but not enough to operate at full capacity, as they did in 2019-2021.
What should businesses with increasing orders do in the current situation?
First, businesses must rebalance their staff. There were many people who left their jobs at the end of last year.
After a year of dealing with financial issues, interest rates have fallen. Price is always a major issue for Vietnamese businesses entering the U.S. market, since they must compete with many from other countries and FDI enterprises in the U.S.
Getting more orders is good news, but the question is how to turn a profit. There are various ways to do this, including using diverse marketing tactics. For instance, many firms were able to use participation in promotion events like fairs to their advantage last year. Those who were able to create distinctive designs for their products also did well.
- Read More
Indonesia to end incentives for imported CBU BEVs in 2026
The Indonesian government has confirmed that it will stop providing incentives for imported completely built-up (CBU) battery electric vehicles (BEVs) from 2026.
Southeast Asia - Tue, September 16, 2025 | 9:44 pm GMT+7
Aquatic sector advised to navigate challenges, secure exports to EU, US
Despite positive production signals with growth in 2025 projected at 4.25%, Vietnam's aquatic sector is facing mounting export pressures, particularly strict technical barriers in major markets such as the EU and the U.S.
Companies - Tue, September 16, 2025 | 9:41 pm GMT+7
Vietnam pledges favorable conditions for UK businesses
Finance Minister Nguyen Van Thang has affirmed Vietnam’s commitment to improving its investment environment and creating favourable conditions for foreign enterprises, including those from the UK.
Companies - Tue, September 16, 2025 | 9:29 pm GMT+7
Lotte Shopping plans to open more shopping malls in Vietnam
South Korean retail giant Lotte Shopping has unveiled plans to open an additional two to three large-scale shopping malls in major Vietnamese cities by 2030, underscoring the country’s growing role in the group’s international expansion strategy.
Companies - Tue, September 16, 2025 | 9:25 pm GMT+7
Vietnam ratifies WTO Agreement on Fisheries Subsidies
Vietnam officially deposited its instrument of ratification of the Agreement on Fisheries Subsidies at the WTO General Council’s special session in Switzerland on Monday.
Companies - Tue, September 16, 2025 | 9:21 pm GMT+7
What makes NobleGo - Vietnam’s first home-bidding livestream platform - so notable?
NobleGo – Vietnam’s pioneering AI-powered livestream real estate bidding platform developed by Sunshine Group – has completed its first 20 livestream sessions.
Real Estate - Tue, September 16, 2025 | 4:53 pm GMT+7
Japanese retailer Aeon to debut another northern Vietnam shopping mall by end-2026
Japanese-backed Aeonmall Vietnam is ramping up construction on its Aeon Mall Ha Long project in Quang Ninh province, home to Ha Long Bay, with an aim to open it to the public by end-2026.
Industries - Tue, September 16, 2025 | 3:54 pm GMT+7
Hanoi terminates Vinaxuki auto plant project, repurposes land for commercial complex
A long-stalled automotive manufacturing project by Xuan Kien Auto JSC (Vinaxuki) has been officially terminated by Hanoi authorities, and the reclaimed land in Phuc Thinh commune will be repurposed for a new commercial and service complex.
Industries - Tue, September 16, 2025 | 2:44 pm GMT+7
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7