HCMC aims to become a global hub for wood and furniture

Over the past two decades, Vietnam’s wood industry, particularly in Ho Chi Minh City, has affirmed its leading position in the global supply chain. From just USD 200 million in export value in 1999, the figure reached nearly USD 15 billion in 2024 and is expected to hit USD 20 billion by 2025, making Vietnam the world’s second-largest exporter of wood and wood products.

Vietnam’s wood industry has established a relatively complete supply chain, from raw materials to production and distribution, creating a strong global competitive edge. Today, Vietnamese wood products are present in 166 countries and territories and are used by major corporations, hotels, and five-star projects worldwide, affirming the industry’s global stature.

Amid the global supply chain restructuring, the shift toward sustainable consumption, and growing demand for eco-friendly products in the U.S., Europe, and Japan, Vietnam’s wood industry is presented with vast opportunities for growth and international recognition. However, it also faces significant challenges from global economic fluctuations, geopolitical competition, green trade barriers, and stricter requirements for traceability and low emissions. These pressures compel wood enterprises to make bold transformations to “turn challenges into opportunities.”

Within this context, Ho Chi Minh City plays a pioneering role in driving the industry’s overall growth. In particular, with the implementation of the two-tier administrative model and the integration of Ho Chi Minh City with the provinces of Binh Duong and Ba Ria - Vung Tau, the city is entering a completely new stage of development.

Following the merger, Ho Chi Minh City now accounts for 50% of the total import–export turnover of Vietnam’s wood and furniture industry. The city’s wood sector not only contributes to job creation but also stands as a symbol of creativity, integration capacity, and the resilience of Vietnamese enterprises. It embodies the dynamism, innovation, and global ambition of the city named after President Ho Chi Minh - a vibrant hub that nurtures the nation’s businesses and economic institutions.

Ho Chi Minh City is not only a manufacturing center but also the hub of trade promotion, design, creativity, and international connectivity - playing a leading role in helping Vietnam’s wood industry advance deeper into the global value chain.

The administrative merger has opened new opportunities for the city’s wood sector. Notably, two major industry associations - the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) and the Binh Duong Furniture Association (BIFA) - are in the process of merging, creating a combined network of nearly 1,000 members, about 70% of which are manufacturers and exporters.

With this strong foundation, and with continued support from the city government through programs on financing, high-quality workforce training, trade promotion, investment attraction, and green transformation - as well as the partnership of industry associations and the favorable policies under Government Decrees 57, 68, and 98 - wood and furniture enterprises in Ho Chi Minh City can confidently sustain production, expand markets, and link growth with sustainable development goals. This momentum will enable the sector to grow commensurately with its potential, contribute more to both the city and the national economy, and realize the vision of making Ho Chi Minh City a global hub for wood and furniture production and export.

Ho Chi Minh City’s vision to 2030 is to become one of the world’s 100 most livable cities, and by 2045, to rank among the top 100 largest global metropolises.

This is an ambitious goal that reflects the strong aspirations of the city’s Party Committee and people, with significant support and contributions from the business community, particularly from the city’s wood industry.

The first Congress of the Ho Chi Minh City Party Committee also reached a consensus that the city’s development must build on the strengths of each region. Accordingly, Binh Duong will become a high-tech industrial hub, focusing on value-added growth with a leaner workforce; Ba Ria-Vung Tau will develop into a maritime, port, clean energy, and logistics center anchored by the Cai Mep-Can Gio port system; and Ho Chi Minh City will position itself as a financial, high-tech, and international service center, supported by modern transport infrastructure such as expressways, Ring Roads 3 and 4, and the Bau Bang-Cai Mep cargo railway.

In particular, Ho Chi Minh City will invest in logistics infrastructure and a regional container railway system to reduce transportation costs and enhance business competitiveness, especially for the wood industry.

Enterprises and associations in the city hope that both the central and municipal governments will adopt open and well-coordinated policies, streamline administrative procedures, make strategic investments, and support the retention of skilled workers. These efforts would enable Ho Chi Minh City to develop specialized industrial zones for the wood sector, build low-emission factories, establish internationally oriented trade promotion centers, and develop an integrated logistics network while accelerating green, digital, and growth model transformations. This is the sustainable pathway for Vietnam’s wood industry to reach global prominence - to integrate without losing identity.

At the seminar “Ho Chi Minh City’s Wood and Furniture Export Industry - A Global Production and Export Hub,”Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc highly commended the proactive and innovative spirit of the city’s wood enterprises for their practical and forward-looking proposals. These recommendations align well with current development trends, opening new pathways for the city’s wood industry - and Vietnam’s as a whole - to reach global prominence.

Chairman Nguyen Van Duoc emphasized that the concept of “green - digital - creative knowledge” represents the sustainable development direction that Ho Chi Minh City’s wood industry is pursuing. “Green” reflects environmentally friendly products with clear origins and reduced emissions, contributing to Vietnam’s goal of achieving net-zero emissions by 2050. “Digital” signifies the sector’s strong shift toward design, e-commerce, and data-driven supply chains. “Creative knowledge” underscores that the highest value of wood products now lies not in raw materials but in design, technology, branding, and the cultural identity of Vietnam, especially the spirit of the city named after President Ho Chi Minh.

Accordingly, the city leader outlined four key directions for the industry’s global advancement. These include restructuring the wood sector toward green and smart industrial clusters; establishing integrated production, processing, and logistics chains linked to the Southern Key Economic Region; and accelerating green and digital transitions to develop circular, low-emission supply chains that contribute to Vietnam’s Net Zero commitment.

Chairman of the Ho Chi Minh City People’s Committee Nguyen Van Duoc emphasized the importance of building a distinctive HCMC wood industry brand - one that embodies creativity, high design value, and the spirit of “made by Vietnam,” meaning products created and mastered by Vietnamese people, rather than merely “made in Vietnam.” He encouraged enterprises to establish R&D units to enhance product quality and design while infusing Vietnamese culture into wood and furniture products.

He also stressed the need for strong collaboration and unity among the “three pillars”: government, industry associations, and the wood business community to build Ho Chi Minh City into a global wood hub.

“Vietnamese people have the skills, the vision, the integrity, and a unique cultural identity - there’s no reason we cannot realize our dream of reaching global heights,” said Chairman Nguyen Van Duoc. He assigned HAWA to develop both short- and long-term trade promotion strategies to strengthen B2B connections and cooperation among associations and industries, avoiding fragmentation and inefficiency.

The city leader also reaffirmed the government’s commitment to listening to and translating industry feedback into concrete policies, creating a favorable, competitive, and sustainable business environment.

With a spirit of dynamism, creativity, and sustainability and with the close guidance and support of the city government, Ho Chi Minh City’s wood and furniture industry will continue to play a pioneering role, contributing to the city’s vision of becoming a global center for wood and furniture production, export, and design, and joining the world’s top 100 most livable and developed cities.