According to the General Department of Customs, Vietnam's wood export turnover for the first 11 months of 2024 is estimated to reach over $14.6 billion, gradually approaching the adjusted target of $15.2 billion set mid-2024.

Currently, Vietnamese wood products are present in 170 global markets, with the top five including the United States, Japan, China, South Korea, and the EU, which collectively account for over 90 per cent of total wood export turnover. Vietnam has ascended to fifth place worldwide in total wood export value.

Market fluctuations in 2024 have strongly impacted Vietnam's wood processing and export activities. Vietnamese wood enterprises have faced difficulties due to sharp increases in raw material prices, complex VAT refund procedures, and primary export markets affected by economic weakness and product protection issues. However, wood processing and export businesses have found opportunities to swim against the current and reach their target.

A series of trade exhibitions seeking markets and attracting customers interested in Vietnamese wood products were organised in key production regions such as Ho Chi Minh City, Binh Dinh, and Binh Duong. Enterprises in Binh Duong, Dong Nai, and Binh Dinh, where many wood processing plants are located, are actively seeking market breakthrough opportunities.

According to Vietnamplus.vn, Nguyen Liem, chairman of the Binh Duong Wood Association, “Businesses in Binh Duong have developed unique product designs and introduced them to international customers. To expand their outlets more flexibly, many enterprises have also changed sales strategies by shifting to e-commerce channels instead of exclusively wholesale.”

Regarding Dong Nai's wood products, businesses from this province have exported to 50 countries and territories, with primary markets being the United States, Europe, Japan, South Korea, and China.

Do Xuan Lap, chairman of the Vietnam Timber and Forest Product Association, said, “If exports reach $3 billion in the last two months, the wood industry's annual exports will achieve the $16 billion target.”

According to Lap, enterprises need to focus on enhancing competitiveness by prioritising five main pillars encompassing production techniques and technology, emissions reduction, management, trade promotions, and internal monitoring standards. Only when Vietnamese wood processing businesses excel in these criteria can they increase the competitiveness of domestic wood products against foreign and foreign-invested enterprises in Vietnam.

Despite the positive export results, industry experts are also encouraging businesses to meet domestic market demands and not leave the market open for foreign goods to dominate. Currently, the domestic market remains largely untapped and is predominantly occupied by imported goods or served by small production units.

Vu Hong Cuong, vice president of the Vietnam Furniture Association, said, "To date, domestic wood processing enterprises have not established a strong position in design or large domestic brands, lacking distinctive product lines despite high production and design potential. This has led to consumer preference for imported goods. Therefore, while exports are the primary goal of Vietnam's wood processing industry, if markets are effectively exploited, wood processing and export enterprises can create a solid brand for both domestic and international consumers."

Source: Vietnam Investment Review