Vietnam targets US$16 billion in timber exports this year

The Hanoi Times — Vietnam's timber industry is eyeing an export value of US$16 billion this year, despite facing trade barriers and strict traceability requirements from the EU and the US, according to Nguyen Tuan Hung of the Department of Forestry and Forest Protection under the Ministry of Agriculture and Environment.

Hung revealed this goal at a recent conference to discuss sustainable development solutions for the timber sector held earlier this month in Quy Nhon City, in the central coastal province of Binh Dinh.

He said that this goal requires cooperation among companies, local authorities, and relevant ministries to advance sustainable plantation forestry and ensure a legal supply of raw materials that meet foreign market requirements.

According to Pham Anh Tuan, Chairman of Binh Dinh People's Committee, the Vietnam Timber and Forest Product Association should develop a well-defined strategy that identifies market demand to avoid overproduction. Meanwhile, companies need to establish a cohesive, specialized supply chain for effective production.

Moreover, Tuan emphasized the importance of understanding the regulatory landscape and risks associated with import policies.

He noted that the timber industry needs to align itself with government policies, particularly those that encourage large-scale timber development, to ensure a stable, long-term supply of raw materials. In doing so, the industry can also take advantage of opportunities in the carbon credit market.

Tuan said the region has become one of Vietnam's top areas for timber processing and export, especially for outdoor wood products, thanks to abundant plantation resources, a favorable port system, and the robust development of industrial zones.

Binh Dinh is home to more than 320 wood processing enterprises, mainly located in the Phu Tai and Long My industrial zones, exporting furniture, outdoor products, wood chips, and pellets to markets including the US, EU, UK, Australia, and Japan. More than 12,000 hectares of the province's plantations have received forest management certification, ensuring compliance with international standards.

Tuan said that the local government is encouraging businesses to adopt green practices and modern technology in production while supporting large investors to establish closed supply chains using local resources.

Meanwhile, a representative of the Vietnam Timber and Forest Product Association called for favorable credit policies to support companies investing in modern machinery and expanding certified raw material areas.

Challenges in export markets

During the conference, timber firms from Binh Dinh, Dong Nai, Binh Duong provinces, and Ho Chi Minh City discussed the challenges of securing stable raw material sources, rising logistics costs, and technical barriers to exporting to Europe and the US.

Le Van Luong, Director of Dai Thanh Wood Technology JSC, expressed concern about rising input costs and capital pressure amid stagnant demand in the US and EU.

The Ministry of Agriculture and Environment reported that in the first two months of 2025, Vietnam's exports of wood and timber products exceeded $2.5 billion, marking a 12.4% increase compared to the same period in 2024.

According to Vietnam Customs, the total export value of wood and timber products in 2024 was more than $16.2 billion, up 20.3% from 2023, including $11.2 billion from timber products, up 21.9% from the previous year.