Wood and wood products exports set a new record

According to the General Department of Customs, in 2024, the export value of wood and wood products reached 16.3 billion USD, marking an impressive increase of 21% compared to the previous year, 2023. Specifically, the export value of wood products alone was 11.3 billion USD, which represents a 22% rise from 2023. With these results, the export value of wood and wood products in 2024 has surpassed the previous record set in 2022, which was 16 billion USD (with wood products accounting for 11 billion USD), thus setting a new benchmark for export earnings in this category.

The Import-Export Department under the Ministry of Industry and Trade has assessed that the remarkable growth in wood and wood product exports can largely be attributed to the proactive efforts of businesses within the wood industry. These businesses have been actively seeking new markets, participating in trade fairs and exhibitions, and shifting their focus from simple export processing to the design and development of new product models while simultaneously enhancing the quality of their products.

In addition, the recovery of demand for wood and wood products in major markets, such as the United States and Europe, particularly in the U.S. market, has created favorable conditions for the Vietnamese wood industry to accelerate its exports. The resolution of excess inventory from previous years has further driven the demand for new imports from these key markets. As a result, the market share of Vietnamese wooden furniture is showing a positive upward trend in major global import markets.

In the U.S. market, for the first 10 months of 2024, the import value of wooden furniture reached 17.5 billion USD, reflecting a 7% increase compared to the same period in 2023. Among the various countries supplying wooden furniture to the U.S., Vietnam has firmly established itself as the primary supplier. In fact, Vietnam’s share of the U.S. market has risen significantly, from 36% in the first 10 months of 2023 to 42% in the same period in 2024.

Meanwhile, the European Union (EU), which is the largest wooden furniture import market globally, is exhibiting a noticeable trend of increasing imports from countries outside the block. The primary reason for this shift is that products from non-EU countries, especially those from Asia, tend to be more affordable than locally produced goods within the EU. These countries outside the bloc are also offering a diverse range of designs, materials and styles. Among these countries, Vietnam has developed sustainable supply chains that meet international standards. Additionally, many Vietnamese products are now FSC-certified, aligning with the EU’s environmental and sustainability criteria. Although Vietnam’s market share in the EU remains relatively small (at 2.1% in the first 9 months of 2024), Vietnamese wooden furniture is increasingly attracting the attention of European consumers.

The UK, which ranks as the third-largest importer of wooden furniture in the world, is also showing positive trends. According to data from the International Trade Centre (ITC), the UK’s wooden furniture imports in the first 10 months of 2024 amounted to 3.6 billion USD, reflecting a 4% increase compared to the same period in 2023. The share of imports from Vietnam has been gradually increasing as well, reaching 5.7% in the first 10 months of 2024, compared to 5.4% in the same period in 2023.

The significant import demand in the UK is creating ample opportunities for Vietnamese businesses to increase their exports to this important market. In addition to the demand, the Vietnam-UK Free Trade Agreement (UKVFTA) plays a crucial role in facilitating this growth. The agreement offers many tariff benefits, particularly for wood products, which are subject to a 0% tariff rate on many items.

Canada, the fourth-largest importer of wooden furniture globally, represents another promising market for Vietnam’s wood industry. According to the Canadian Customs Service, the import value of wooden furniture into Canada for the first 10 months of 2024 amounted to 1.87 billion USD, reflecting a slight decrease of 0.05% compared to the same period in 2023. However, Vietnam's share of the total import value has increased to 16%, up 0.8 percentage points compared to the previous year. This suggests that there is still significant room for Vietnamese wood furniture companies to expand their market share in Canada.

In Japan, while Vietnam’s share of the wooden furniture market has experienced a slight dip, it remains high at 21% for the first 9 months of 2024. Moreover, the Vietnamese wood industry has successfully penetrated deeper into other key markets and expanded its presence in emerging markets such as the UAE and India. These developments lay a solid foundation for the wood industry to confidently pursue its target of reaching 18 billion USD in exports by 2025.