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8 MARKET BEATS SEP/OCT 2025 FDM ASIA | www.fdmasia.com

Vietnam's forestry industry set to widen its export over 54–56 percent of total wood export revenue, has been
market affected by a 20 percent retaliatory tariff policy, announced
Woodworking industry is among the agricultural export sectors by the White House on 1 August.
with the highest value in Vietnam, contributing significantly In the EU market, Vietnamese enterprises contribute

to export growth and the country’s economic development. significantly to the segments of indoor and outdoor furniture
However, new challenges such as tariffs, legal raw materials, and wood pellets, averaging over US$1 billion annually.
and reduced purchasing power from major export markets pose Recently, the EU enacted the EU Regulation on Deforestation-
difficulties, forcing enterprises to restructure and enhance their Free Supply Chains (EURD), prohibiting the import of agricultural
competitiveness in order to survive and develop sustainably, products such as coffee, rubber, soybeans, wood, and palm
according to Nhan Dan. oil with links to deforestation globally. This regulation will take
Currently, there are over 5,000 enterprises engaged in effect in January 2026.
wood and timber product processing across Viet Nam, of Given these challenges, Vietnamese enterprises have striven
which private enterprises account for 95 percent. to meet the stringent commitments on building sustainable

About 3.5 percent have capital investment exceeding supply chains, avoiding deforestation, and complying with
VND50 billion. Approximately 2,000 enterprises are involved in international standards.
producing wood products for export, with domestic companies Other key export markets, including Japan, China, and South
holding a 65 percent market share. Korea, also present challenges related to timber origin verification,
According to the Vietnam Timber and Forest Product environmental protection requirements, compliance with green
Association (VIFOREST), exports of wood and timber products production standards, and greenhouse gas emission reduction.
continue to maintain steady growth in major markets. Pressures from export markets also present opportunities

Exports to the US market are higher than the same for enterprises to reconsider their growth models, increase
period last year, while exports of wood chips and pellets to adaptability, and respond effectively to external market fluctuations.
Japan, China, and South Korea are maintaining good growth According to VIFOREST Vice Chairman Ngo Sy Hoai, the
rates. The EU market, mainly for indoor and outdoor wooden global economic volatility in 2025 and beyond, along with
furniture, has also seen slight growth. geopolitical conflicts, will affect transportation costs, raw
However, Vietnamese wood export enterprises are facing wood prices, and trade regulations, impacting export activities.
two major challenges. Firstly, the US market, which contributes Nevertheless, he pointed out that these pressures from
export markets also present opportunities for enterprises to
kfcatles reconsider their growth models, increase adaptability, and

respond effectively to external market fluctuations.
He stressed that growth can no longer rely on comparative
advantages such as cheap raw materials and low labour
costs; it must shift towards competition based on quality
and branding. Moreover, enterprises need to expand and
restructure export markets to diversify.
Many potential markets such as China, Japan, and other

markets like the UK, Russia, the Middle East, South America,
and ASEAN remain underexploited.