Expanding markets and reducing dependence
According to Deputy Director of the Viet Nam Trade Promotion Agency under the Ministry of Industry and Trade Le Hoang Tai, Viet Nam’s exports of wood and wood products reached approximately 17.2 billion USD in 2025. In the first nine months of 2026, export turnover for the sector was estimated at 13.43 billion USD, up 7.3% year on year.
These figures reflect domestic businesses’ efforts to sustain production, adapt to changing conditions, and secure orders. However, export growth also highlights the need to strengthen resilience against economic volatility, tariff barriers, trade policy shifts, and trade defence measures in major markets.
At the October 2026 trade promotion coordination conference with Viet Nam’s overseas trade offices, held under the theme “Diversifying markets and boosting exports of Vietnamese wood and furniture products,” representatives of government agencies, industry associations, and trade missions abroad focused on analysing opportunities across a range of markets, from Europe and Asia to Oceania and the Middle East. Discussions at the conference indicated that considerable growth potential remains, but businesses need to adopt market-entry strategies tailored to the characteristics of each destination to capitalise on these opportunities effectively.
Vice Chairman and Secretary-General of the Viet Nam Timber and Forest Products Association (VIFOREST) Ngo Si Hoai said Viet Nam’s wood industry had established a relatively comprehensive ecosystem, spanning plantation forestry, timber harvesting, processing, and exports. The country also holds a strong position in the global market for value-added indoor and outdoor furniture.
Nevertheless, the industry continues to face significant bottlenecks. According to Hoai, exports remain heavily dependent on the US, which accounts for more than 50% of total turnover. Meanwhile, the original equipment manufacturer (OEM) model, under which businesses make products to customers’ specifications, leaves them vulnerable to changes in trade policies. Requirements concerning product origin, raw material traceability, and deforestation, together with logistics costs, are also placing additional pressure on exports.
Market diversification, therefore, should go beyond finding additional customers for existing products. More importantly, businesses need to take the initiative in increasing product value, engaging more deeply in design and brand development, and building long-term competitiveness.
Understanding the needs of individual markets
Information from Viet Nam’s overseas trade offices reveals that each market has its own consumer preferences, technical requirements, and market-entry opportunities. Businesses must therefore select suitable products and commercial strategies.
Viet Nam’s Trade Counsellor in the Netherlands Vo Thi Ngoc Diep said that Vietnamese exports of wood and wood products to the Dutch market reached 138 million USD in the first nine months of 2026, an increase of 86% compared with the same period in 2025. The Netherlands is not only a major European trading partner for Viet Nam but also an important logistics gateway and distribution hub for goods entering the European Union (EU).
According to Diep, Dutch consumers favour furniture that is simple in design, multifunctional, space-saving, durable, and made from legally sourced materials. Vietnamese businesses need to take these preferences into account from the earliest stages of product design and development. Compliance with regulations on traceability, deforestation, product safety, and chemicals is also essential to maintaining market access.
Viet Nam’s Trade Counsellor in Spain Luu Van Khang reported that Spanish imports of wood and wood products from Viet Nam reached 9.38 million USD in the first seven months of 2026, rising sharply from 3.94 million USD in 2025 and 1.8 million USD in 2024. However, Spain is also a highly competitive market, with Chinese goods accounting for a substantial share.
According to Khang, Vietnamese businesses need to change their approach. Rather than competing on price alone, they should combine their strengths in design, quality, sustainability, traceability, and flexible manufacturing. Promising segments include household furniture, outdoor furniture, products incorporating rattan and bamboo weaving, and furniture for hotels, restaurants, and resorts.
Meanwhile, Australia offers promising opportunities for wood products used in construction and interior furnishing. Viet Nam’s Trade Counsellor in Australia Tran Thi Thanh My said that Vietnamese exports of wood and wood products to the country reached 125.4 million USD in the first nine months of 2026, an increase of more than 7% year on year.
Key product categories include wooden furniture, upholstered furniture, and industrial plywood for construction and other projects. However, businesses need to pay close attention to requirements concerning legal timber, traceability, and quarantine inspections for timber packaging, while making effective use of preferences available under free trade agreements.
Modernising trade promotion and increasing product value
Experience across these markets demonstrates that the challenge is not simply to expand the list of trading partners. It is also necessary to modernise trade promotion methods and strengthen direct connections between Vietnamese businesses and importers, retail chains, designers, and project contractors.
HAWA Chairman Phung Quoc Man said Viet Nam’s exports of wood and wood products reached approximately 13.3 billion USD in the first nine months of 2026, up 6.3% year on year. Vietnamese wood products are now sold in 137 countries and territories. He noted that support from Viet Nam’s overseas trade offices plays an important role in providing market intelligence, identifying suitable import partners, and promoting specialised domestic trade fairs.
Notably, Luu Van Khang proposed moving away from firms participating in trade fairs independently towards establishing national pavilions under the “Viet Nam Pavilion” brand at international exhibitions. The model would involve cooperation between trade offices, wood industry associations, and the Viet Nam–Europe Business Alliance, covering everything from buyer identification and business matchmaking to monitoring negotiations and order finalisation after the fairs. This approach aims to address the lack of continuity in trade promotion activities while increasing the visibility and recognition of Vietnamese products in overseas markets.
To ensure that trade promotion delivers tangible results, Ngo Si Hoai proposed providing more detailed information on market demand, product segments, item codes, and distribution channels; helping businesses verify buyers’ credibility and identify trade risks; connecting exporters with retailers, designers, and contractors; and following up on sample shipments, quotations, and contract negotiations.
The association also proposed a 90-day action plan involving coordination between the Vietnam Trade Promotion Agency, overseas trade offices, and industry associations. The initiative would identify five to seven priority markets, develop digital profiles for businesses, and draw up a trade promotion programme for 2027.
These proposals highlight that expanding into new markets is necessary, but increasing product value and competitiveness will ultimately determine the Vietnamese wood industry’s ability to achieve sustainable growth. Alongside ensuring legal raw material supplies, meeting market-specific standards, and proactively adapting to trade barriers, businesses need to gradually move beyond contract manufacturing towards design, product development, and building their own brands.
Close coordination between government agencies, industry associations, overseas trade offices, and businesses will help make trade promotion more targeted and substantive, aligning activities with actual market demand and domestic supply capabilities. This is also an important pathway for Viet Nam’s wood industry to better capitalise on export opportunities, reduce the risks associated with dependence on a limited number of markets, and strengthen its position in global value chains.
