Wood exports poised to reach $18 bln in 2025

Vietnam’s Department of Forestry under the Ministry of Agriculture and Rural Development has projected a positive outlook for wood and wood product exports in 2025, with a target of $18 billion.

According to the General Department of Customs, Vietnam's wood and wood product exports in 2024 are estimated to reach $16.25 billion, up 20.3% year-on-year. The result represents a significant milestone as it surpassed the previous record of $15.8 billion set in 2022.

These successes can be attributed to the proactive efforts of businesses to seek new markets, participate in trade fairs and exhibitions, transition from simply processing to designing innovative products, and enhance product quality, according to the General Department of Customs.

The recovery of consumer demand in major markets, particularly the U.S. and Europe, provided a significant boost to exports. The Vietnamese wood industry also made inroads into key markets and expanded its presence in emerging regions like the UAE and India.

Despite these positive outcomes, the industry still faces notable challenges. Key issues include the need for stricter control over the legal origin of wood in major export markets, the risk of trade fraud, competition from regional players, and global economic fluctuations.

The U.S. and the EU have imposed stricter regulations on the legal origin of wood, requiring Vietnamese businesses to improve supply chain oversight. Regional competitors such as Indonesia, Thailand, and Malaysia also pose significant challenges, while potential economic slowdowns in major markets could impact demand.

To address these issues, according to the General Department of Customs, the industry must adapt to stricter regulations, enhance product value, and strengthen market penetration strategies.

Ngo Sy Hoai, vice chairman and general secretary of the Vietnam Timber and Forest Products Association (VIFOREST), told the government’s news portal that with strong growth momentum and collaborative efforts between businesses and regulatory agencies, the industry is well-positioned to achieve new milestones and strengthen its international presence.

Prospects for 2025

The Department of Forestry has forecast that Vietnam’s wood exports could reach $18 billion in 2025. However, success will depend on factors such as global economic recovery, consumer demand in major markets, evolving trade policies, and the competitiveness of Vietnamese enterprises.

The U.S. remains the leading market for Vietnamese wood products, but competition from suppliers like China, Malaysia, and Indonesia underscores the need for Vietnamese businesses to focus on value-added products.

The EU market, supported by the Vietnam-EU Free Trade Agreement (EVFTA), offers additional opportunities through tariff advantages. Meanwhile, rising demand in China, driven by urbanization and construction growth, presents another avenue for expansion, though stricter origin requirements remain a challenge.

To meet the $18 billion target, Ngo Sy Hoai emphasized the importance of trade promotion. He suggested that businesses should leverage e-commerce platforms, although bulky wooden products pose logistical challenges for online sales. He urged the Trade Promotion Department to prioritize e-commerce initiatives tailored for the wood industry.

In addition, the industry is embracing digital and green transformations to comply with the regulatory requirements of key markets like the U.S. and EU. At the national level, Hoai called for the Ministry of Industry and Trade to actively promote Vietnam’s commitment to sustainable practices, with the message “Vietnam’s wood industry says no to illegal wood”.