However, amid escalating trade tensions between major global economies, the industry is adjusting its strategies to sustain its growth momentum.
Market share at risk amid rising tariffs
Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of the Vietnam Timber and Forest Products Association (VIFORES), noted that Vietnam's wood industry has seen strong growth in recent years, establishing the country as a leading global hub for wood processing and exports. However, shifting tax policies in key export markets present significant challenges.
According to VIFORES, since 2020, Vietnam’s wood export revenue has surged from $12.5 billion to $17.8 billion, with the US, China, and Europe being the largest markets. The US alone accounts for over $11 billion, nearly 60 percent of total exports. Consequently, trade defense measures and tariff adjustments in the US pose a major threat to Vietnam’s wood export market share.
"The US Government has ordered a review and potential countervailing duties on 17,000 imported goods, including wood products. If tariffs and protectionist measures continue to rise, Vietnam’s wood exports to the US will inevitably decline, especially if duties reach 25 percent. This would create serious challenges for Vietnamese exporters in maintaining growth. Moreover, higher tariffs could weaken Vietnam’s competitive edge as Chinese and other wood-exporting countries ramp up their shipments to the US," VIFORES leader analyzed.
Meanwhile, the European Union has introduced stricter import regulations, adding another layer of complexity for Vietnamese wood exporters. While Vietnam has signed multiple free trade agreements, compliance with environmental standards, product quality, and technological advancements remains a critical area for improvement to meet evolving market demands.
Strengthening oversight of product origin
Despite ongoing challenges, Vietnam’s wood industry continues to hold strong growth potential. To capitalize on opportunities, wood exporters emphasize the need for policy adjustments. One key measure is for authorities to consider removing import tariffs on raw wood from the US to mitigate the risk of reciprocal duties on Vietnamese wood exports.
In 2024, Vietnam imported over $300 million worth of raw wood from the US, primarily logs and sawn timber, with tariffs ranging from 20 percent to 25 percent—a relatively high rate. Reducing or eliminating these tariffs would help lower the risk of countervailing duties on Vietnam’s wood exports and create more opportunities for businesses to expand in this key market.
“China and other regional markets have a growing demand for Vietnam’s processed wood products. By leveraging free trade agreements, the industry can further expand exports while improving product quality to meet these markets' stringent requirements,” said Mr. Nguyen Chanh Phuong, Director of Danh Moc Co., Ltd.
However, Mr. Ngo Sy Hoai pointed out that some Chinese companies are taking advantage of Vietnam’s free trade agreements by rerouting their products through Vietnam to export to markets like the US. To prevent trade circumvention, stricter regulations and closer oversight of product origin are essential to ensure compliance with international trade rules and protect the integrity of Vietnam’s wood exports.
In a recent interview with SGGP Newspaper, Mr. Do Ngoc Hung, Commercial Counselor, Head of the Vietnam Trade Office in the US, emphasized the need for Vietnamese businesses to take proactive measures in response to US tariff policies and trade defense mechanisms. To sustain export growth, companies must continuously update information and adjust their production and export strategies to align with shifts in global trade policies.
The Vietnamese Government is intensifying trade defense efforts to protect domestic enterprises from the adverse impacts of protectionist policies in major economies. Ensuring a stable business environment and implementing investment-friendly policies in manufacturing will be key to fostering long-term, sustainable growth.
Deputy Minister of Industry and Trade Phan Thi Thang stated that, given the ongoing trade tensions among global economic powers, Vietnam’s overseas trade offices must actively monitor developments, provide timely insights, and forecast potential impacts. These offices should assess market conditions, offer prompt support to businesses, and collaborate closely with domestic trade associations. Strengthening ties between local authorities and the Ministry of Industry and Trade will also be essential in enhancing national trade promotion efforts.
Furthermore, expanding cooperation between Vietnam’s overseas trade offices and domestic businesses will be crucial in driving exports. These offices play a vital role in delivering timely updates on trade policies, market trends, and emerging opportunities. Agencies such as the Department of Industry and Trade, the Trade Remedies Authority, and other relevant units must work in coordination to help businesses navigate trade barriers and capitalize on opportunities in key markets like the US, Europe, and China.
