Production activities at Hiep Long Company Limited (Di An, Binh Duong). Photo: Provided by the company.

Key export industries

Binh Duong is one of the largest centers of the wood processing industry in Vietnam, known as the capital of this industry.

According to data from the Binh Duong Statistics Office, many of the province's key export items have recorded impressive growth. In particular, the wood and wood products industry in Binh Duong has made a strong breakthrough. In the first 10 months of 2024, wood and wood products led the province in terms of export turnover of key items with an export turnover of more than USD 5.4 billion, an increase of more than 24% over the same period last year, accounting for 19% of the total export turnover of the whole province.

Mr. Nguyen Truong Thi, Deputy Director of the Department of Industry and Trade of Binh Duong province, said that Binh Duong currently has more than 1,200 wood processing and exporting enterprises, of which more than 300 are foreign-invested enterprises (FDI). The wood processing industry is also a key export industry, accounting for the largest proportion of Binh Duong province. Binh Duong has been and is continuing to create favorable conditions for wood processing and furniture enterprises to create a sustainable development environment.

Wood processing enterprises in Binh Duong not only focus on the domestic market but also strongly expand to important international markets such as the United States, EU, Canada, and South Korea. Thanks to investment in modern technology and sustainable production, the province's wood processing industry has been highly appreciated for its product diversity and ability to meet international standards.

Notably, the US market is showing many positive signs, promising to bring about a boom in wood and wood product exports in the coming months. Mr. Nguyen Liem, Chairman of the Binh Duong Wood Processing Association, said that since the beginning of the year, the US has been Vietnam’s largest export market in the wood sector, accounting for more than 80% of the total export turnover of wood and wood products of Binh Duong province.

The US Federal Reserve’s announcement that it will stop raising interest rates and plans to consider cutting interest rates in 2024, along with gradually improving inventories and increasing sales of pre-owned homes in the US, are all positive signals for the furniture export market. According to Mr. Nguyen Liem, these factors will create many favorable opportunities for Vietnamese goods, especially wood products, to access and develop in the US market.

Support market expansion

Besides large markets, exports to potential markets also achieved positive results, in which India is a notable bright spot.

Mr. Cao Van Dong, General Director of Kettle Interiors Asia Co., Ltd., said that India is emerging as a promising market for Vietnamese wooden furniture and interior exports, with transaction value growing significantly in the past two years. Currently, India has a total furniture market size of up to USD 41 billion, making it the fourth largest furniture consuming country in the world.

To expand the market, wood processing enterprises in Binh Duong have continuously invested in e-commerce, combining traditional and online sales methods. This approach helps increase product consumption and finds new customers in developed countries.

In addition, according to the leader of the Binh Duong Department of Industry and Trade, in order to support businesses to expand into international markets, Binh Duong has made strong efforts to invest in transport infrastructure, port systems and warehouses to reduce logistics costs for businesses. The routes connecting Binh Duong to seaports have been significantly upgraded, making the transportation of goods more convenient and time-saving. These improvements not only facilitate export businesses but also increase the competitiveness of local products in the international market.

However, according to businesses, there are still many difficulties in the future because the world situation continues to have complex and unpredictable fluctuations. Geopolitical conflicts and high sea freight rates have led to an increase in the price of imported raw wood, causing the cost of output products to increase.

Mr. Huynh Quang Thanh, Director of Hiep Long Company, said that the European Commission (EC) has recently announced a proposal to postpone the implementation of the EUDR for 12 months instead of the expected entry into force from January 2025. Thus, importers, exporters and traders when trading with the EU market will have to comply with this Regulation from December 30, 2025.

The EUDR, which is accompanied by a ban on the import of agricultural products into the EU that are produced through processes that cause deforestation, aims to prevent products linked to deforestation or forest degradation from entering the EU market. At the same time, the EUDR also encourages the purchase and sale of legal and environmentally friendly products.

One of the most notable points of the EUDR is the requirement for exporting enterprises to submit a supply chain assessment commitment. This is considered a "passport" for products to be allowed to circulate freely in the EU market. However, according to Mr. Thanh, the process of completing this commitment requires enterprises to comply with many complicated and costly procedures, increasing pressure on exporting enterprises wanting to access the EU market.