Vietnam’s Wood Industry in Q1/2025: Solid Export Growth, Shifting Challenges, and Top 10 Exporters

Key Export Markets: The U.S. Leads, India Surges

The United States remains Vietnam’s top export destination, accounting for 54.3% of total wood-related export turnover. In Q1/2025, exports to the U.S. reached USD 2.14 billion, up 12.9% year-on-year. Of this, nearly 90% comprised wooden furniture, reaffirming Vietnam’s position as the largest wooden furniture supplier to the U.S., with a 41.8% market share in 2024.

Notably, in January 2025, U.S. imports of wooden furniture from Vietnam surged by 25.6%, far above the 8.4% overall market increase. Meanwhile, imports from China — the second-largest supplier — fell by 14.6%.

Other major markets include:

• Japan, with USD 510.96 million in Q1/2025, up 21.8%
• China, down 14.3%, reflecting stricter trade conditions
• India, up an impressive 53.8% to USD 47.9 million, with high demand for wood boards and flooring
• South Korea and Canada, also showing positive momentum

Emerging Risks: Trade Barriers, Regulatory Shifts & Raw Material Pressures

Despite a strong start, Vietnam’s wood sector faces several headwinds:

• Retaliatory tariffs from the U.S. could impact furniture exports unless local manufacturers diversify designs and improve trade defense capabilities.
• The upcoming EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM)—effective December 31, 2025—will require exporters to meet stricter environmental and sustainability standards.
• In Japan, changes in Feed-in Tariff (FIT) programs and stricter traceability requirements will affect wood pellet exporters.
• Globally, the price of imported timber is rising, driven by supply limitations, while competition from China, Malaysia, and Indonesia—countries with technological and cost advantages—is intensifying.

Strategic Recommendations: Diversification, Digitalization, and Domestic Market Expansion

To sustain export momentum and mitigate risk, Vietnamese wood companies should:

• Explore new markets and diversify supply sources
• Strengthen digital transformation and upgrade production lines to meet FSC and green design standards
• Innovate with original product designs and flexible manufacturing
• Shift more focus to the domestic market, which remains heavily dependent on imports (currently 90% of high-end furniture is imported)
• Leverage the growing domestic market potential, valued at nearly USD 10 billion, to build strong local brands

Top 10 Vietnamese Exporters of Wood and Wood Products (Jan–Feb 2025)

Note: This is preliminary data – for reference only

Conclusion

Vietnam’s wood industry is performing well but must brace for volatile trade dynamics, evolving regulatory landscapes, and stiff international competition. However, with its deepening capabilities and a growing domestic market, Vietnam remains one of Asia’s most promising wood product hubs.