Wood and wood products are among the commodities at risk of declining export turnover in the second half of 2025 due to various challenges. Amid global trade fluctuations, the Ministry of Agriculture and Environment has developed a scenario to maintain and promote growth in this sector’s export value.
The U.S. remains Vietnam’s largest market for wood and wood products
According to data from the Ministry of Agriculture and Environment, the export value of wood and wood products in June 2025 is estimated at USD 1.4 billion, bringing the total for the first half of the year to USD 8.21 billion, up 8.9% compared to the same period in 2024.
Imports of wood and wood products in June 2025 are estimated at USD 300 million, resulting in a total import value of USD 1.52 billion for the first half of 2025, an increase of 19.9% year-on-year.
The United States is Vietnam’s largest market for wood and wood products, accounting for 55.6% of total exports. Japan and China follow, with market shares of 12.6% and 10.4%, respectively.
In its export promotion plan for agro-forestry-fishery products for the second half of the year, the Ministry identified wood and wood products as a sector likely to face declining exports due to numerous difficulties. Additionally, the industry faces the highest pressure from U.S. tariff policies, due to its large market share.
The export target for wood and wood products in 2025 is USD 18.5 billion, a 7% increase compared to 2024. Of this, the goal for the first half is USD 8.4 billion, and for the second half, approximately USD 10.1 billion.
The Vietnam Administration of Forestry (VNFOREST), under the Ministry, noted that achieving this target depends on several factors: global economic recovery, consumer demand in major markets, trade policies, and the competitiveness of businesses in the sector. Currently, Vietnam’s wood industry faces limitations in internal strength and global competitiveness. In addition, tariff policies from importing countries pose significant challenges, requiring Vietnamese enterprises to make extra efforts to adapt and overcome them.
Boosting Market Share While Expanding Export Markets
In response to these challenges, the Ministry emphasized the importance of focusing on export markets, particularly the U.S., as a key strategic market. The U.S. market is experiencing trade imbalances and tariff issues, leading to weakened competitiveness and buyers seeking alternatives. Therefore, it is crucial to leverage the strengths of Vietnam’s wooden products, such as product diversity, competitive pricing, strong manufacturing capacity, flexible OEM/ODM production, and compliance with legal timber standards.
At the same time, Vietnam should continue to identify and maintain suitable product lines for export to the U.S.
Furthermore, the wood industry must prepare thoroughly for trade defense investigations. One key measure is scaling up the issuance of plantation area codes after pilot programs, to reinforce traceability and minimize the risk of origin fraud investigations. This also supports sustainable forest management and helps businesses meet origin requirements of the U.S. and other markets. Enterprises must also improve their management and storage of origin-related documentation to ensure transparency and overcome legal barriers.
Wood enterprises should also enhance their capacity in risk management (interest rates, exchange rates, trade defense investigations), access to financing, sustainable development, and building resilient value chains from afforestation and processing to distribution in key markets such as the U.S., Europe, Japan, Australia, and the Middle East. Simultaneously, caution should be exercised when sourcing raw materials from countries currently subject to U.S. tariffs.
In traditional and other potential markets, the industry should continue boosting market share in China for products such as wood chips, peeled veneer, sawn timber, particleboard, blockboard, and wood for construction.
Additionally, the sector should expand exports to Europe, Japan, Australia, Canada, and the Middle East—emerging markets with growing resort construction projects—to offset declines in major markets. Participating in international trade fairs to directly promote products in these markets is also crucial.
Lastly, the wood industry should consider shifting product focus to the domestic market and proactively adjusting its business strategies and production plans in response to increased protectionist measures from tariff-imposing countries, which could intensify competitive pressure on Vietnam.
Source: https://thoibaotaichinhvietnam.vn/