Page 26 - FDMAsia SepOct 2025

24 FOCUS SEP/OCT 2025 FDM ASIA | www.fdmasia.com

Marc Bruxelle Manufacturers urged to offer more products to existing
markets
Vietnamese wood companies should introduce more product
lines and offer these to avoid “having all eggs in one basket,”

said Phung Quoc Man, chairman of the Handicraft and Wood
Industry Association of Ho Chi Minh City (HAWA).
For example, exports to Japan should not be limited to
woodchips and pellets, Man added while speaking on impacts
and business responses to US tariffs.
He explained that the industry’s first reaction to the new
tariffs was ‘shock’, with orders declining however, companies
Vietnam's imports of raw wood (log and lumber) from the quickly adapted by advancing shipments during the grace
ASEAN region in June 2025 dropped to 65,840 cubic metres, period.

with a value of US$13.43 million, down 29 percent in volume Since the tariffs took effect supply chain stability has
and 39 percent in value compared to May 2025. been maintained by sharing the tax burden among producers,
In the first six months of 2025, imports of raw wood from importers and retailers. As a result, wood exports in the first
ASEAN amounted to 441,390 cubic metres, with a value of seven months still grew with shipments to the US up around
US$114.72 million, down five percent in volume and nine 12 percent, a sign of the industry’s strong resilience.
percent in value over the same period in 2024. In the long run, solutions include diversifying markets,
Vietnam timber enterprises eye US-based manufacturing improving management capacity and cutting costs.

In response to US reciprocal tariffs some Vietnamese wood To reduce risks, firms could expand their offerings to
manufacturers are considering manufacturing in the US, said existing destinations. He suggested Japan could import more
Ngo Sy Hoai, Vice Chairman and General Secretary of the than just woodchips and pellets, South Korea more than just
Vietnam Timber and Forest Products Association (Viforest). engineered wood and Europe more than just outdoor furniture.
The Ministry of Agriculture and Environment reported that Can Van Luc, a member of the Prime Minister’s Economic
exports of agricultural, forestry and fishery products in the Advisory Council and chief economist at state-controlled BIDV
first seven months of 2025 reached US$39.68 billion, up 15 Bank, pointed out that four out of 10 kitchen products in the
percent year-on-year. US now come from Vietnam.
Of this, wood and wood products earned US$9.67 billion, According to the import-export department under the

an increase of eight percent over the same period. Ministry of Industry and Trade, steady growth in the US market
In the period January to July agricultural-forestry-fisheries not only reflects a recovery in consumer demand for furniture
earned a trade surplus of US$11.52 billion with wood and but also shows how Vietnamese companies are proactively
wood products making the largest share at US$7.7 billion, adapting to tariffs and increasingly strict buyer requirements.
up four percent over the same period in 2024.
The US remains Vietnam’s largest market for wood and Wood industry has certain opportunities after tax
wood products accounting for 56 percent of total exports in Vu Kim Hanh, chairwoman of the High-Quality Vietnamese

the first seven months of 2025, followed by Japan and China, Goods Business Association, highlighted a golden opportunity
with 12 percent and 11 percent respectively. for Vietnam’s wood industry following the US decision to