**Hanoi**: Vietnam’s forestry sector is striving for USD 18 billion in exports by 2025 amid increasing international regulations. Industry leaders stress the need for improved traceability and sustainable practices to navigate new challenges, particularly with potential US trade barriers and strict EU deforestation rules looming on the horizon.
Vietnam’s forestry industry is targeting an ambitious export milestone of USD 18 billion by the year 2025. This aim reflects the nation’s intent to bolster its standing as a key player in the global timber market. However, achieving this goal is complicated by increasing international regulations pertaining to the sourcing of agricultural and forestry products, which necessitate a strong response from Vietnamese exporters.
The evolving regulatory landscape is particularly influenced by policy modifications in significant markets, including the United States and the European Union. Analysts predict that the US will introduce stricter trade protection measures by 2025, which could substantially impact Vietnamese exporters, who currently send more than half of their wood-related exports to the American market. Given Vietnam’s status as the fourth-largest export market for the US in the ASEAN region and the eighth-largest globally, the ramifications of such policy shifts could be profound. Should exporters fail to comply with rigorous traceability requirements, they may face punitive tariffs or other trade barriers.
Additionally, competition may intensify as local producers and alternative suppliers vie for market share, further complicating the situation for Vietnam’s timber sector. In the EU, the recently extended EU Deforestation Regulation (EUDR) presents similar hurdles, as it prohibits the import of products connected to deforestation. This regulation is set to come into effect at the end of 2025 for larger enterprises and mid-2026 for small and medium-sized businesses.
While this timeline offers Vietnamese businesses a window to adapt, experts caution that compliance will require significant enhancement of monitoring and certification processes related to forest resources. Broader trade disputes or disruptions to global supply chains could also adversely affect Vietnam’s wood product exports. In light of these challenges, agility and preparedness are identified as crucial priorities for industry stakeholders.
The Vietnam Timber and Forest Product Association (VIFOREST) has highlighted the dual nature of the future landscape for Vietnamese timber exporters, recognising both potential opportunities and considerable challenges. There is a growing global trend favouring sustainable materials for construction and interior design, which could present new avenues for those exporters capable of meeting eco-conscious demands.
Currently, Vietnam harvests between 22 and 23 million cubic metres of plantation timber annually, with over 500,000 hectares of forests certified for sustainable management. The government has set a forestry development strategy that aims to achieve 1 million hectares of certified forests by 2030. According to Tran Quang Bao, Director General of the Forestry and Forest Protection Department under the Ministry of Agriculture and Rural Development, enhancing raw material areas is critical for long-term sustainability. This initiative includes expanding large timber plantations and promoting FSC or PEFC certified forests.
Pilot programmes have been initiated to implement traceability codes for forest areas in northern provinces, with plans for nationwide rollout. These codes are intended to form the foundation of a legal timber supply chain that adheres to international standards, while simultaneously assisting Vietnam in documenting its carbon sequestration capabilities and contributing to climate targets.
Ngo Sy Hoai, Vice Chairman and Secretary General of VIFOREST, noted that competitiveness remains essential for survival amidst the current landscape. He underscored the importance of collaboration between government and private sectors in promoting sustainable forest certification, as well as adopting cutting-edge traceability technologies. These advancements are designed to provide transparency throughout the supply chain, from harvest to transportation and ultimately to consumption.
Digital transformation is also critical, with exporters being encouraged to invest in digital supply chain management, enhance product design and branding, and comply with environmental production standards. Legal origins, design preferences, and competitive pricing will all play pivotal roles in maintaining and expanding market share.
Coordinated responses to the increasing use of trade defence tools, such as anti-dumping investigations and technical trade barriers, are deemed necessary. Close cooperation among businesses, industry associations, and governmental agencies is essential to effectively navigate the changing regulatory environment. Verification of product origin is highlighted as a key tool to prevent trade fraud and ensure compliance with the regulations of importing nations.
Strengthening legal capacity, enhancing risk management, and adhering to international environmental standards are additional measures suggested to bolster Vietnam’s position in the global timber trade. As the sector progresses, the emphasis on sustainability, transparency, and resilience is anticipated to be fundamental not only to achieving export objectives but also to securing long-term competitiveness in the international arena.
Source: Noah Wire Services
