**Hanoi**: Vietnam’s forestry industry targets USD 18 billion in exports by 2025, focusing on sustainable practices and compliance with international regulations amid changing global trade dynamics. The sector grapples with potential US tariffs and EU regulations while seizing opportunities in eco-friendly markets.
Vietnam’s forestry industry is aiming for an ambitious export target of USD 18 billion by 2025, focusing on sustainability and compliance with international regulations amidst evolving global trade dynamics. The urgency to enhance supply chain governance and transition towards greener production standards is underscored by growing international regulations on sourcing agricultural and forestry products.
Trade analysts highlight that shifts in policies, particularly in significant markets such as the United States and the European Union, could have a transformative impact on the wood and timber export sector. Currently, over 50% of Vietnam’s wood-related exports are directed towards the US market, where stricter trade protection measures are anticipated to be enforced in 2025. As Vietnam ranks as the US’s fourth-largest export market in ASEAN and the eighth-largest globally, the potential for punitive tariffs or trade barriers poses considerable risks to exporters who may struggle to comply with stringent traceability requirements.
Similarly, the recently extended EU Deforestation Regulation (EUDR), effective at the end of 2025 for large companies and mid-2026 for small and medium-sized enterprises, prohibits the import of products linked to deforestation. While the delay in implementation offers Vietnamese businesses additional time to adapt, experts caution that significant advancements in the tracking and certification of forest resources will be necessary to ensure compliance.
In response to these challenges, the Vietnam Timber and Forest Product Association (VIFOREST) is emphasising the emergence of new opportunities within the global market, particularly as trends increasingly favour sustainable materials in construction and interior design. This shift presents potential benefits for Vietnamese wood exporters that are able to meet the growing demand for eco-friendly products.
Currently, Vietnam harvests between 22 to 23 million cubic metres of plantation timber each year, with over 500,000 hectares of forests already certified for sustainable management. The government has set an ambitious target of achieving 1 million hectares of certified forests by 2030 as part of its forestry development strategy.
According to Tran Quang Bao, Director General of the Forestry and Forest Protection Department under the Ministry of Agriculture and Rural Development, the enhancement of raw material areas is crucial for realizing long-term sustainability. This involves the expansion of large timber plantations and forests certified by recognised standards such as the Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC).
Pilot programmes aimed at assigning traceability codes to forest areas in northern provinces are currently underway, with plans for nationwide rollout. These codes are essential for developing a legal timber supply chain that aligns with international regulations and aids in quantifying carbon sequestration potential, thus contributing to climate goals.
Ngo Sy Hoai, Vice Chairman and Secretary General of VIFOREST, indicated that maintaining competitiveness is vital for survival in the current environment. The government and private sector are collaborating to promote sustainable forest certification and advanced traceability technologies, facilitating transparency throughout the entire supply chain from harvesting to final consumption.
Digital transformation is another critical aspect of this strategy. Exporters are encouraged to invest in digital supply chain management, enhance product design and branding, and adopt environmentally compliant production methodologies. Securing legal origins, adhering to design preferences, and pricing competitively are deemed essential for sustaining and growing market share.
Moreover, addressing the increasing reliance on trade defence tools, such as anti-dumping investigations and technical trade barriers, necessitates a coordinated response among businesses, industry associations, and government agencies. Verification of product origin plays a crucial role in combating trade fraud and ensuring compliance with regulations in importing countries.
Strengthening Vietnam’s position in the global timber market hinges on bolstering legal frameworks, improving risk management, and adhering to international environmental standards. The forestry sector’s commitment to sustainability, transparency, and resilience is expected to be pivotal in achieving its export ambitions while simultaneously securing long-term competitiveness in the international arena.
Source: Noah Wire Services
Subscribe to Industry Updates
