Vietnam has set an ambitious target of reaching USD 18 billion in wood exports by 2025. However, this goal is challenging in the face of growing global trade protectionism and increasingly complex trade defense cases. To stay competitive, the wood industry must be proactive in navigating global market fluctuations.

As of early 2025, newly planted forest areas across the country total over 153,000 hectares, yielding 11.1 million cubic meters of wood. In light of escalating trade defense challenges, the Ministry of Agriculture and Environment is refining policies to help wood businesses stabilize operations and enhance supply chain control.

Diversifying markets and export products

According to the Ministry of Agriculture and Environment, wood and wood product exports since the start of 2025 have reached over USD 8 billion. The United States remains the largest market, accounting for 55.6% of total exports, followed by Japan at 12.6% and China at 10.4%. Ngo Sy Hoai, Vice Chairman and General Secretary of the Vietnam Timber and Forest Products Association, stated that Vietnam has become one of the world’s leading wood product suppliers, with furniture exports ranking just behind China.

However, this prominent position comes with higher risks of anti-dumping, anti-subsidy, and tax evasion investigations, potentially resulting in high tariffs, reduced competitiveness, and lost market share. In 2024 alone, there were 32 trade defense cases involving Vietnamese exports in 12 different markets.

The Vietnam Plywood Sub-Association includes over 50 members exporting to the US, South Korea, and India. Although subject to trade defense probes from South Korea and anti-dumping tariffs from the US, businesses continue fulfilling orders thanks to thorough documentation proving origin, production processes, and pricing.

Trinh Xuan Duong, Chairman of the Plywood Sub-Association and Director of Ke Go Co., Ltd., said the plywood industry often faces anti-dumping and subsidy investigations. However, the industry's use of locally harvested wood from five-year plantations and low labor costs allows companies to present strong documentation when challenged. As soon as investigations are announced, the association coordinates legal counsel and information-sharing among members to ensure accurate and timely responses.

Wood businesses are encouraged to take strategic measures, including expanding forest area code registration, complying with rules of origin for wood materials, restructuring inputs and production, and minimizing reliance on imported materials. They should also improve the management and storage of documentation related to material origin and ensure transparency in reporting.

Ngo Sy Hoai emphasized the need for exporters to expand market share and strengthen their presence at international trade fairs to promote products and brands. He noted Japan's growing demand for wooden interior products and eco-friendly spaces, and South Korea’s logistical advantages for sea transport. However, Vietnamese wood exports to South Korea are still mainly limited to wood pellets and low-cost plywood. Meanwhile, despite the EU-Vietnam Free Trade Agreement (EVFTA), exports to the EU’s 27 member states account for just 3.8% to 4% of Vietnam’s total wood export turnover.

Strengthening trade defense capacity for exporters

As global markets increasingly apply trade defense tools to protect domestic industries, Vietnam’s wood sector is expected to face more pressure in 2025. Wood and forest products are particularly affected by U.S. investigations into the impact of imported sawn timber on national security. This category represents about 10% of Vietnam’s total wood exports to the US. Using more domestic materials, diversifying suppliers from markets not involved in trade investigations, and ensuring transparency in origin will help reduce risks.

Import tax policies remain a major challenge for Vietnamese wood exporters. Overcoming them requires improved risk management, knowledge of trade defense procedures, and development of sustainable value chains from raw materials to processing and distribution. Businesses are adapting to evolving trade defense trends, including new tax regulations, broader protective measures, and extensive safeguards like anti-circumvention tactics.

Tran Quoc Bao of Thien Loc Import-Export Company said that to offset market losses from trade restrictions, companies are looking to shift production toward domestic consumption and explore new markets. They also closely monitor trade defense regulations, especially in markets with frequent investigations.

Trinh Xuan Duong stressed that trade defense is inevitable and businesses must collaborate, share information, and support one another in responding to cases. He also highlighted the industry's lack of expertise in international legal issues and called on the Trade Remedies Authority and associations to provide more support.

The Department of Forestry and Forest Protection (under the Ministry of Agriculture and Environment) is currently working with associations and industry groups to assess the impact of trade defense measures, trace input sources, and verify certified forest areas. Their efforts aim to prevent misinformation and illegal origin declarations.

Importing countries now demand strict traceability of legal wood sources. Therefore, building transparent and sustainable supply chains in compliance with origin rules is essential for the long-term success of Vietnam's wood export industry.

Wood and forest product exporters must prepare legal documentation proving the legal origin of their materials, such as FSC-certified wood or other recognized sources. They should also be ready to demonstrate production processes and raw material areas when accused of tax evasion or dumping.

Vietnam was recently listed by the European Commission as a “low-risk” country for deforestation. This status benefits wood exporters, allowing simplified due diligence procedures and just 1% compliance inspection for products like coffee, rubber, and timber.

PV