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In particular, Vietnam's assessment as a country with a Among the 15 largest export markets, the Netherlands
low rate of deforestation will create favourable conditions for recorded the highest growth, with export values increasing
businesses to implement a simpler accountability mechanism. 2.3 times, whereas South Korea experienced the sharpest
However, it is noteworthy that "simplification" does not decline at 19 percent.
mean losing standards. In fact, recently issued third version In addition to competitive pressure, the industry is facing a
of the EUDR guidelines continues to tighten requirements for rise in trade defense measures. On 11 March 2026 the Office

traceability and data transparency. of the US Trade Representative (USTR) initiated a Section
This is the most difficult part for many Vietnamese agricultural 301 investigation into imported wooden furniture, including
export businesses today. products from Vietnam, regarding allegations related to trade
According to the regulation, the EU requires traceability surpluses and currency manipulation.
down to each geographical coordinate (geolocation), meaning The Vietnam Timber and Forest Product Association
each shipment must have its exact source location identified (VIFOREST) noted that the industry stands at a crossroads
using GPS data, digitised maps and satellite imagery. as importing markets tighten environmental standards, carbon
This is a landmark change. Previously, businesses primarily emission regulations and raw material traceability requirements.
relied on paper documents or certifications of growing areas for The EU is currently leading the global green consumption

verification; now, control mechanism has shifted to verification trend, making criteria for sustainability, transparency, and
using digital data and satellite technology. environmental responsibility mandatory for imported wood
In other words, EUDR is transforming traceability from a products.
"recommended" requirement into a mandatory condition for Although the EU accounts for only about five percent
accessing the EU market. of Vietnam’s total wood exports it remains the market that
defines the highest standards. Businesses must meet these
Wood exports maintain growth but challenges persist benchmarks to maintain their global standing.

Vietnam’s wood product exports maintained their growth Beyond external factors, domestic wood enterprises are
momentum in the early months of 2026, bolstered by a strong also struggling with internal regulations. Most notably, obstacles
performance in Asian markets, particularly China. persist regarding the management of Value Added Tax (VAT)
However, the industry is simultaneously grappling with for ordinary semi-processed wood products, adding further
significant challenges, ranging from trade defence measures strain to the industry’s operations.
and increasingly rigorous EU "greening" requirements to the
urgent need for digital and green transformation to maintain
competitiveness.
According to the Ministry of Agriculture and Environment, BAMBANG WIJANARKO

exports of wood and wood products in May 2026 arnd around
US$1.55 billion. Despite the overall growth, there is a clear
divergence across export markets.
In the first five months of 2026 exports to the US declined
by 6.5 percent year-on-year. In contrast, exports to China
surged by 48 percent, while the Japanese market saw a six
percent increase.