Data from Vietnam Customs show that Vietnam’s exports of wood and wooden products in 2025 reached $18.5 billion, up 6.6 per cent year-on-year, marking the first year the industry surpassed $17 billion in exports and pushing its trade surplus to nearly $14.9 billion.

Major milestone

Wooden furniture exports totaled $10.25 billion, accounting for nearly 60 per cent of the industry’s total export value and continuing to serve as the main export pillar.

Several other product categories also posted export revenue of $1 billion or more, including wood chips, with $2.42 billion; timber, boards, and flooring $2.2 billion; and wooden pellets $1.18 billion.

In terms of markets, the US remained the largest export destination, with shipments valued at $9.46 billion, up 4.4 per cent year-on-year and accounting for 55 per cent of the industry’s total export turnover.

Despite facing reciprocal tariff pressure since the third quarter of 2025 and a 25 per cent duty imposed on kitchen cabinets and upholstered furniture from October, Vietnamese enterprises maintained their position as the largest furniture suppliers to the US market. This underscores the industry’s efforts to weather strong headwinds.

One notable bright spot was Japan, which recorded impressive growth of more than 23 per cent, reaching $2.153 billion and becoming Vietnam’s second-largest export market. China ranked third, with $2.086 billion.

As a result, the three “billion-dollar” markets - the US, Japan, and China - accounted for nearly 80 per cent of Vietnam’s total exports of wood and wooden products in 2025. Other markets were significantly smaller, including South Korea, with $709 million, Canada $288 million, and the UK $244 million.

Supply chain transparency

Vietnam’s exports of wood and wooden products to the US in recent years have not only been subject to reciprocal tariffs but have also faced a series of anti-dumping and countervailing duties as well as national security investigations under Section 232 of the US Trade Expansion Act. These measures currently focus on plywood and furniture and could extend to other products if Vietnam fails to demonstrate the legality and transparency of its timber sources.

The main reason many markets have erected “barriers” against Vietnamese wooden products lies in concerns over dumping, tariff circumvention, and a lack of transparency in supply chains. In this context, traceability and the legal management of forest resources have become mandatory requirements for maintaining and expanding export markets.

Under mounting pressure, the Ministry of Agriculture and Environment is studying the development of a coding system for the nationwide plantation forest area, scheduled for implementation from 2026. Deputy Minister of Agriculture and Environment Nguyen Quoc Tri said the system would provide a basis for proving the legality of raw timber and enhance the forestry sector’s management capacity.

Alongside policy efforts, digital technologies are also being applied to support timber traceability. The WoodID application can currently identify more than 260 wood species with a high degree of accuracy, helping officials and businesses with inspections and declarations.

Commenting on the policy, a representative from the World Wide Fund for Nature (WWF) Vietnam noted that once the system operates in a synchronized manner, Vietnam will be able to clearly demonstrate the legal origin of its timber, thereby increasing its access to high-end markets.

Ms. Ashley Amidon, Executive Director of the International Wood Products Association (IWPA), said that while US consumers primarily focus on price, regulators place particular emphasis on timber origin and material transparency. Vietnam’s large trade surplus in the wood sector has prompted the US to step up investigations under various mechanisms.

She added that building a plantation forest coding system and enhancing supply chain transparency would not only help Vietnam’s wood industry overcome current trade barriers but also prepare it to meet new regulations such as the EU Deforestation Regulation (EUDR) and to effectively implement agreements including the Voluntary Partnership Agreement (VPA) with the EU and timber cooperation arrangements with the US.

Three strategic directions

According to Mr. Nguyen Quoc Khanh, Chairman of the Vietnam Timber and Forest Product Association (VIFOREST) for the 2025-2030 period and Chairman of the Board of the AA Architecture Construction JSC, over the past two decades, starting almost from zero, Vietnam’s wood industry has authored a proud story on the global export map. This achievement is the result of a sustainable forestry governance foundation built by the government, supported by international organizations, and driven by more than 6,000 enterprises nationwide that have worked tirelessly to build and grow the industry.

Today, Vietnam’s wood sector stands at a new stage, one of major challenges but also of significant opportunities if they are seized effectively. According to Mr. Khanh, Vietnamese enterprises are currently facing three major challenges.

First, market instability. The US, the industry’s key, traditional market, is applying inconsistent tariff policies, while the EU market continues to struggle with economic slowdown. Japan and South Korea remain relatively stable, but their scale is still limited and insufficient to offset declines in traditional markets. Meanwhile, emerging markets such as the Middle East, Australia, New Zealand, Latin America, Southeast Asia, and Africa offer new opportunities but also pose risks related to payments, logistics, and legal frameworks.

Second, competitive pressure from foreign-invested enterprises. These players enjoy significant advantages in technology, capital, management capability, and long-established international market networks, creating an urgent need for Vietnamese enterprises to accelerate improvements in productivity, quality, and governance.

Third, internal constraints. The prevailing development model remains heavily reliant on processing, as Original Equipment Manufacturers (OEM), with low productivity due to limited R&D and insufficient investment in technological innovation. Products, markets, and segments also lack diversification, while labor attraction is declining compared to other industries as the country enters a new growth phase.

In light of these challenges, Mr. Khanh said it is time for the wood industry to build a new internal foundation: green production, modern technology, advanced governance, and high productivity.

To achieve the $25 billion export target by 2030, the industry as a whole, and the Association in particular, need to focus on three clear directions.

First, enhancing competitiveness through a tightly linked ecosystem. This includes building a complete, strong, and self-reliant supply chain; improving production capacity; providing systematic training; updating international information; investing heavily in technological innovation and green production; and strengthening links between domestic and international associations.

Second, building a national Vietnamese wood furniture brand based on four pillars: green, quality, flexibility, and competitiveness. Specifically, the industry needs a transparent, inclusive, and internationally-standardized data system, and broader adoption of global standards.

Third, diversifying markets, products, and distribution channels while gaining deeper control of market opportunities. Vietnamese enterprises need a greater presence at major trade fairs, deeper connections with domestic and international partners, and the more effective use of Vietnam’s overseas trade offices. Domestically, specialized trade fairs should be upgraded to position Vietnam as a global destination for international buyers.