The Billion-Dollar Export: Unveiling Vietnam’s Thriving Industry

According to statistics from the Forestry Department, under the Ministry of Agriculture and Rural Development, in the first six months of 2024, Vietnam’s timber and forest product exports earned 7.95 billion USD, an increase of approximately 21.2% compared to the same period in 2023, and achieved 52.3% of this year’s plan. Notably, some of Vietnam’s main markets for timber and forest products saw significant growth, such as the US (reaching 4.38 billion USD, up 27.6% compared to 2023) and China (reaching 1.059 billion USD, up 46.6%).

At the seminar “Developing green and adaptive logistics” and the announcement of the FIATA World Congress 2025, held on the afternoon of July 9, Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of the Vietnam Timber and Forest Product Association (Vifores), shared that Vietnam’s timber industry is currently ranked 5th in the world in terms of total export turnover. Additionally, when considering only high-value-added wood products, such as indoor and outdoor furniture, Vietnam’s wood export industry ranks 2nd in the world, only after China.

According to Vifores’ leadership, Vietnam’s timber exports have reached 170 markets worldwide. Among them, the US, Japan, China, South Korea, and the EU account for over 90% of export turnover. Notably, the US alone accounts for nearly 40% of the total export turnover of Vietnam’s timber industry. If the US imports 10 chairs, four of them are ‘made in Vietnam’.

In fact, the US remains the largest export market for Vietnam’s timber and forest products. In the first six months, the export turnover of timber and timber products to the US reached 4.38 billion USD, accounting for 55% of the total turnover of the entire industry. The increase in US imports of Vietnam’s timber and timber products indicates a quick recovery in demand in this country. Wooden furniture is the main export item to the US.

Similarly, in the Chinese market, Vietnam’s timber and timber products are very popular, with a turnover of over 1 billion USD in just the first half of 2024. According to the latest statistics from the General Administration of Customs of China, in the first six months of 2024, Vietnam surpassed Thailand to become the third-largest supplier of wooden furniture, only after Italy and Germany.

Vietnamese Timber Has High Growth Potential

According to the Import and Export Department (Ministry of Industry and Trade), with the current growth rate, the outlook for exporting timber and timber products is expected to continue to maintain double-digit growth. The factors supporting this potential outlook are the annual cycle, as imports of timber and timber products tend to increase, especially for wooden furniture groups in large markets, which often increase significantly in the last three months of the year. This is also the time when the housing market enters the completion phase, and there is a demand for renovation and new furniture to welcome the new year.

In addition, as inflation in major markets is under control, it creates a boost for green consumption. In fact, many large economies in the world are expected to have positive growth this year, according to experts.

However, according to the Vice Chairman and General Secretary of the Vietnam Timber and Forest Product Association, timber products are quite specific and have the characteristic of being bulkier than other products, and the cost of sea transportation is very high. In fact, there are contracts where the value of the goods is equivalent to the cost of transportation.

Therefore, according to Vifores’ leadership, the green transition of the logistics industry is one of the decisive factors for the success of the timber industry. Businesses in the timber industry need to move towards green processing, green growth, and growth, as timber products are very environmentally sensitive.

Reference: Mard, Moit, Vifores, GAC