Page 7 - FDMAsia MarApr 2025

MARKET Beats 5

www.fdmasia.com | FDM ASIA MAR/APR 2025

Vietnam's Wood Industry VNA

Takes Measures To Address

Challenges

Vietnam's company working hard to seize opportunities
According to vir.com.vn, Tran Lam Son, founder of one
southern-based Furniture company, said that the company
had orders flooding in, with its two major markets of the EU
and the US showing steady growth.
“Customers now require fast delivery to meet the high
demand for 2025 spring-summer shopping season, so the
company needs to constantly increase production capacity

to keep up with schedules,” said Son.
According to Son, since mid-Q4/2024, companies in the
industry have adapted to the buying patterns of customers,
where orders are divided into smaller batches based on sales B2C form with end consumers globally,” said Moc.
schedules. Due to the nature of materials and product size, shipping
Thanks to digital transformation and technological innovation, costs often make up a large portion of the price of wood and
many companies now can produce and deliver products furniture products.

quickly, meeting market demands efficiently. Industry associations have therefore gathered export
After experiencing a significant growth spike in 2022, companies to collect production data for each market and
the wood industry faced a severe ‘order shortage’ due to negotiate shipping rates with shipping companies to secure
economic downturns in many regions, high inventory levels, the best prices, enhancing the competitiveness of Vietnamese
and rising shipping costs. wood and furniture products.
At one point, order volumes declined by 40-60 percent, “Unless there are sudden changes, the wood and furniture
and many factories had to scale back operations. industry can achieve an export growth rate of 20 percent this
With years of market experience, businesses recognise year, and many businesses have set a growth target of 20-30
that the scale of the industry will not shrink, but continue percent,” said Son.

to grow. The furniture company has been working hard to The Department of Forestry under the Ministry of Agriculture
adapt and retain workers to seize the opportunities when forecasts a positive outlook for the export of wood and wood
the market recovers. products in 2025, with an export target of nearly $18 billion.
Meanwhile, Lai Tri Moc, CEO of a leading manufacturer In 2024, Vietnam brought in $16.25 billion, up 20.3 percent
of furniture, handwoven products and ceramic home decor, on-year, from export of wood and wood products.
said that the opportunities for export of wood products and To reach the $18 billion export target, Ngo Sy Hoai, vice
handicrafts were significant. president and general secretary of Vietnam Timber and Forest

“Cross-border e-commerce platforms are rapidly growing, Products Association, noted that trade promotion efforts are
creating opportunities for Vietnamese businesses to trade in crucial.