The Golden Goose Continues to Lay: Vietnam’s Treasure Trove Could Hatch a $16 Billion Windfall This Year

In 2024, the Ministry of Agriculture and Rural Development set a target of $14.2 billion in timber and wood product exports for the year, a 6% increase from 2023.

According to data from the Ministry, from the beginning of the year until the end of October 2024, Vietnam’s exports of wooden furniture and wood products reached $13.2 billion, a nearly 21% increase compared to the same period last year.

The United States is a crucial market, contributing over 55% of the total revenue of the wood industry. Exports to this market reached over $7.34 billion, a 25.3% increase compared to the previous year. Specifically, exports to the US in October 2024 reached nearly $849.76 million, a 14.7% increase compared to September 2024 and a 20.6% increase compared to October 2023.

Mr. Do Ngoc Hung, Commercial Counselor of Vietnam in the US, shared: “The US market has a huge demand for high-end, high-value goods as well as affordable, competitive products. Therefore, even small and medium-sized enterprises can find their market niche in the US.”

Some other notable markets include Japan, with $1.42 billion, accounting for 10.8% and a 2.5% increase; China, with $1.72 billion, accounting for 13% and a 22.3% increase; and South Korea, with $648.58 million, accounting for 4.9% and a 0.7% decrease. Exports to the Southeast Asian market reached $273.2 million, accounting for 2.1% and a 15.6% increase. Exports to the EU market reached $401.71 million, accounting for 3% and a 26.1% increase.

To achieve these results, the Vietnamese wood industry has been expanding its export markets and penetrating deeper into key markets such as the US, Europe, South Korea, and Japan. They are also increasingly present in emerging markets such as the UAE and India.

Along with this, a series of trade fairs to explore markets and attract customers interested in Vietnamese wood products have been organized in key production localities such as Ho Chi Minh City, Binh Dinh, and Binh Duong.

Regarding the industry’s prospects, Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association, shared that “if the last two months of the year achieve an export turnover of $3 billion, the total export turnover of the wood industry for the whole year will reach $16 billion (approximately VND 406,120 billion).”

Meanwhile, the Import-Export Department (Ministry of Industry and Trade) and the Center for Industrial and Trade Information forecast that positive market trends will drive the wood industry to achieve its export target of $17.5 billion in 2024.

The reason given by the Department is that the last months of the year are more favorable, as the demand for wood and wood products, especially wooden furniture, increases significantly in major markets to meet the needs of the holiday season and the year-end real estate market.

Along with the positive outlook for the wood industry, businesses operating in this sector in the stock market have also recorded promising performance.

For example, Phu Tai Joint Stock Company (PTB) reported that in the first nine months of the year, its net revenue reached over VND 4,530 billion, an 11% increase compared to the same period. Profit before tax was VND 349.3 billion, and profit after tax was VND 285.6 billion, an 18.4% and 18% increase, respectively, compared to the previous year. Phu Tai attributed this growth to increased sales in the stone and wood sectors.

Similarly, Duc Thanh Wood Company (GDT) reported that by the end of September 2024, its revenue reached VND 250 billion, a 13% increase compared to the same period last year. This figure is equivalent to nearly 70% of the company’s revenue plan for the whole of 2024.

The consolidated financial statements for the third quarter of 2024 of An Cuong Wood (ACG) also recorded a net revenue of VND 2,764 billion, an increase of VND 154 billion compared to the first nine months of 2023. Profit after tax reached VND 329.9 billion, a 32.3% increase compared to the same period last year.

According to ACG’s explanation, the main reason for this significant increase is the improvement in the export market; the company focused on products with good margins and strengthened its financial income.

At the annual general meeting held earlier this year, Mr. Le Duc Nghia, Chairman of the company, said that the export factories were operating at 110% capacity, and the company even had to outsource some production. “I expect the export segment to double in 2025,” Mr. Nghia added.