Protecting forests and building a green future: $15 bln in exports and transformation to deep processing

In 2025, Vietnam's export turnover of wood and wooden products reached over USD 15 billion. This milestone placed the country among the world's top five wood exporters, behind only China, the EU, the U.S., and Canada.

This achievement is not merely an economic milestone but a clear reflection of a profound transformation, from raw wood exploitation and pre-processing to a deep processing industry standing firm in the global supply chain.

Bài liên quan

Protecting forests and building a green future: From severe forest loss to a global reference

In the late 1990s, Vietnam's wood export value stood at only a few hundred million USD. By 2000, it reached just USD 219 million, consisting mainly of roundwood and wood chips. At that time, the cargo ships carried low-value shipments, and few could have imagined that only two decades later, Vietnam's wood industry would secure a place on the global trade map.

By 2010, export turnover had surpassed USD 3.4 billion. In 2020, it reached the milestone of USD 11 billion, and by 2025, it had surged to USD 15 billion. That journey embodies both a deep aspiration for integration and decisive policy choices.

The critical turning point was the shift in product structure. From primarily raw exports, the wood industry gradually focused on deep processing. Today, refined wood products and high-end furniture account for over 60% of total export turnover.

Factories no longer simply cut and saw wood. They now deploy eco-friendly paint coating technologies, automated production lines, and even artificial intelligence for product design and order management. In Vietnam's wooden furniture hubs such as Dong Nai and Bac Ninh, it is not difficult to find wood industrial zones spanning dozens of hectares, equipped with production lines on par with international manufacturing centers.

This transformation is built on the foundation of domestically planted forests. Vietnam currently has more than 4.7 million hectares of planted forests, supplying about 70% of raw materials for the processing industry. The shift from harvesting natural forests to planting large timber forests, with rotation cycles extended from 5–7 years to 10–15 years, has not only doubled the value per hectare but also helped Vietnamese wood products meet stringent requirements on legal origin. Hundreds of thousands of hectares have been certified by the Forest Stewardship Council (FSC), paving the way into premium markets.

On this basis, leading enterprises have risen to become "billion-dollar big guys," investing in modern factories while directly participating in global supply chains. Vietnamese wood products are now present in the networks of IKEA and Walmart, penetrating the furniture markets of North America, Europe, and Japan. The “Made in Vietnam” brand has become a familiar choice on the demanding retail shelves.

According to Mr. To Xuan Phuc, an expert at Forest Trends, the milestone of USD 15 billion marks maturity, but the greatest challenge does not lie in output. He cautioned, "The global market is tightening standards on transparency and sustainable development. To maintain its position, Vietnam’s wood industry must truly be 'green,' from raw materials to processing, from markets to brands."

Mr. Phuc emphasized that policies must continue expanding certified forest areas while supporting enterprises in technological innovation, productivity enhancement, and improved management capacity.

Another factor that cannot be overlooked is international integration. Vietnam's signing of the VPA/FLEGT Agreement with the European Union (EU) has established a mechanism to verify the legality of wood exported to the EU, creating a major boost in both confidence and markets.

Along with a series of new-generation free trade agreements, the wood industry has swiftly capitalized on these advantages to expand its market share. Exporting is no longer merely the story of turnover, but it has become a journey to position a national brand.

According to industry insiders, that brand also relies on internal strength. Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of the Vietnam Timber and Forest Products Association, stated that the past three decades have proven the industry's extraordinary growth, but further going will depend on self-reliance.

"Domestic raw material supply needs to be strengthened, human resources standardized, and processing technology made more advanced. Equally important is the domestic market of 100 million people, which must serve as a base. Vietnamese wood enterprises cannot rely solely on export orders. Only by conquering domestic consumers can we build a truly solid base," he said.

The success of the wood industry has also left a social imprint. More than 700,000 direct workers and millions of indirect workers are engaged in the value chain. For many farmers in the Central and Northwestern regions, planting large timber forests not only generates stable income but also contributes to poverty reduction, shifts traditional slash-and-burn practices, and helps conserve land and water. It is a rare linkage between livelihoods and environmental protection.

However, the road ahead is not smooth. Vietnam's key wood export markets, such as the U.S., the EU, and China, are imposing increasingly stringent requirements on environmental issues and traceability. Competition from China and other ASEAN countries shows no sign of easing.

In that context, the resilience of Vietnam's wood industry will be tested not only in terms of production capacity but also in its ability to prove transparency and responsibility for the environment and society.

80 years of the forestry sector, USD 15 billion in exports, and a position among the world's top five wood export powerhouses are both a source of pride and a reminder. When Vietnamese wood products can stand firm in the most demanding markets, it is also the moment when forests are no longer merely the green lungs but a sustainable economic driver for the nation.