Towards a sustainable “wood hub”
Binh Dinh is one of the provinces with large areas of planted forests, featuring key tree species such as acacia, eucalyptus, and pine. Notably, the promotion of large timber plantation following sustainable practices, including compliance with international standards like the Forest Stewardship Council (FSC) certification and carbon credits, is providing a significant competitive advantage for Binh Dinh’s wood industry in the global market.
Currently, wood processing enterprises in Binh Dinh prioritise the use of certified raw materials, ensuring legal compliance and clear origins to enhance product reputation, maintain high quality, protect the environment, and develop a green economy.
According to the Binh Dinh Wood and Forest Products Association, the province currently has nearly 10,000 hectares of large timber plantations. The area certified under FSC sustainable forest management is approximately 15,000 hectares, with over 7,600 hectares being used for large timber plantations.
By 2025, the total area of large timber plantations in the province is expected to reach 10,000 hectares, while FSC-certified forests will expand to nearly 16,000 hectares. By 2030, the goal is to establish over 50,000 hectares of large timber plantations, with an average proportion of large timber output exceeding 60%.
Alongside large timber afforestation, Binh Dinh is one of Vietnam’s four major wood processing centres, often referred to as the country’s “wood hub”. It is also a key hub for the development of wood processing and forestry industry clusters.
Le Minh Thien, Chairman of the Binh Dinh Wood and Forest Products Association, stated that Binh Dinh has attracted numerous large-scale investments in wood processing in recent years, forming concentrated industrial zones with modern infrastructure and advanced equipment. Wood processing enterprises in the province have proactively invested in new technologies to enhance productivity, improve product quality, and diversify designs to meet increasingly stringent market demands.
The integration of advanced technology into production processes has improved economic efficiency while minimising environmental impact. Many enterprises are transitioning to energy-saving machinery and equipment, reducing waste and emissions. Currently, Binh Dinh’s wood industry not only meets domestic consumption needs but also boosts exports to major markets such as the US, the EU, Japan, and the Republic of Korea. Binh Dinh’s wood products are highly regarded for their quality and diverse designs, catering to various market segments.
Tran Van Lam, a representative of Tan Dai Hung General Co., Ltd. (Nhon Hoi Industrial Park, Quy Nhon City), shared: “Tan Dai Hung specialises in producing indoor and outdoor furniture combined with metal and synthetic rattan. With a commitment to fostering a friendly and professional workforce, we always strive to maintain our reputation and quality, offering diverse product lines to meet domestic and international customer demands.”
Over the years, Tan Dai Hung’s primary customers have been from the US and European markets, which are both highly demanding in terms of product quality. The company also focuses on building long-term partnerships, seeking potential collaborators, and learning from other businesses.
Le Quang Bao Anh, Deputy Director of Hoang Giang Trading Co., Ltd. (Phu Tai Industrial Park, Quy Nhon City), stated that the company currently owns five factories, covering nearly 100,000 square meters with a production capacity of 30,000 products per month. This provides stable employment for over 1,000 local workers. With a focus on sustainable development, Hoang Giang prioritises high-quality products, utilising innovative materials in line with modern trends. The company also invests heavily in modern equipment and closed production lines.
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Wood pellet production at Tan Phu Son Joint Stock Company (Binh Duong Town Industrial Cluster, Phu My District). |
Overcoming challenges
In 2024, Binh Dinh’s wood export value reached nearly 1.1 billion USD, a 15% increase compared to 2023, accounting for approximately 62% of the province’s total export turnover. Additionally, the province attracted 31 investment projects worth a total of over 3.37 trillion VND, bringing the total number of wood processing enterprises to over 370 and creating jobs for more than 30,000 local workers. These figures affirm Binh Dinh’s position as one of Vietnam’s four leading wood processing and exporting centres.
However, the industry still faces significant challenges in 2025, particularly regarding orders and customers, as geopolitical tensions continue to disrupt global supply chains.
Major markets such as the US, the EU, and the UK are also experiencing economic difficulties due to tightened monetary policies and high interest rates, reducing consumer purchasing power. This has forced many major furniture distribution and retail groups to downsize or even close, directly impacting the order volume for Binh Dinh’s wood enterprises.
New regulations such as the EU Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), and the US Lacey Act impose stringent requirements on the origin and sustainability of timber materials, posing further challenges for wood exporters. To comply with these regulations, businesses must ensure legal and sustainable sourcing, requiring significant investments in supply chain management and oversight.
In 2025, the Binh Dinh wood industry aims to increase its export value by 7-10% compared to 2024, reaching approximately 1.2 billion USD. Diversifying product lines and strengthening industry linkages will help businesses expand their trade networks, enhance exports to international markets, and promote Vietnamese wood brands.
The long-term goal is to develop a sustainable and efficient wood processing industry, achieving Binh Dinh’s target of 2 billion USD in export revenue and contributing to Vietnam’s overall wood export target of 20 billion USD in the 2021-2030 period.
Pham Anh Tuan, Chairman of the Binh Dinh Provincial People’s Committee, stated that the provincial government will hold monthly dialogues with businesses to promptly address difficulties and support sustainable growth. As part of the province’s acceleration strategy to align with the new economic era, Binh Dinh will focus on three key priorities: local public investment, boosting consumption, and economic growth, with wood exports playing a crucial role.
The provincial chairman urged the wood industry to strive for an export value of 1.5 billion USD in 2025 while fostering collaboration, sharing information, and opening new markets through deep processing innovations.
