Wood exports get optimistic signals from Canada

Loss of USD 2 - 3 billion if the US imposes tariffs

According to the Customs Department, the export value of wood and wood products in February 2025 reached USD 1.03 billion, down 27.7% compared to January 2025, but up 33.9% compared to February 2024. Of which, the export value of wood products reached USD 665.7 million, down 32.2% compared to January 2025, but up 38.9% compared to February 2024.

In the first two months of 2025, the export value of wood and wood products reached USD 2.45 billion, an increase of 9.4% over the same period in 2024. Of which, the export value of wood products reached USD 1.65 billion, an increase of 9.1% over the same period in 2024.

The Import-Export Department (Ministry of Industry and Trade) recognized that the export of wood and wood products in the first two months of 2025 had many advantages, with export values ​​to significant markets all recording positive growth.

The US market is leading in the export value of wood and wood products, reaching USD 1.3 billion, an increase of 9.5% over the same period in 2024. The US is the largest consumer market of wood and wood products in Vietnam, with a value accounting for 53.1% of the total export value.

Next, exports to the Japanese market reached USD 323.4 million, up 21%, accounting for 13.2%; China reached USD 259.9 million, down 15.2%, accounting for 10.6%; Korea reached USD 119.5 million, up 6.3%, accounting for 4.9%...

Although the export value of wood and wood products achieved good results in the first 2 months of 2025, in the coming time, the industry is forecast to face many difficulties as major export markets increasingly require strict control of wood origin.

Specifically, ensuring legality, not causing deforestation, green production, and reducing emissions, the price of imported raw wood increased due to limited supply. In addition, there is fierce competition from other major suppliers, in which China, Malaysia, Indonesia... are also major wood exporting countries, with advantages in technology and costs.

In addition to the above issues, the Vietnamese wood industry is also worried about increased tariffs from the United States. Vice President and General Secretary of the Vietnam Timber and Forest Products Association Ngo Sy Hoai shared: "Recently, President Donald Trump ordered relevant US agencies to investigate and consider imposing a 25% tax on logs, sawn timber, and forest products. This has caused great concern for Vietnamese wood businesses, and some US customers have hesitated to sign contracts for 2025," he said.

The US market has consumed over 50% of Vietnam's total wood export value for many years. In 2024, Vietnam exported USD 9.1 billion worth of wood products to the US, mainly high-value interior and exterior wooden furniture. Currently, except for plywood, which has an 8% tax rate, most Vietnamese wood products exported to the US enjoy a 0% tax rate.

To ensure export targets, the Vietnam Timber and Forest Products Association is ready to accompany businesses and participate in hearings if the US requests to prove that the trade relationship between Vietnam and the US in wood products is complementary, non-competitive, and does not affect US domestic production.

Also, businesses have proposed that the Government should soon exempt import tax on wood products from the United States (currently subject to a 25% tax), avoiding being subject to reciprocal taxes from this country. The Director of the Department of Forestry and Forest Protection estimates that the entire production chain will be affected if Vietnamese wood products are subject to an equivalent tax (at 25%). The damage to the industry is estimated at USD 2-3 billion. The Department is working with the Vietnam Timber and Forest Products Association to create a tax list for all products, from which it will advise the Ministry of Agriculture and Environment and the Ministry of Industry and Trade to ensure benefits for businesses.

Solutions from the Canadian market

In the first two months of 2025, Canada was the 5th largest import market for Vietnamese wood, with a value of more than USD 43 million, an increase of more than 21% compared to the same period in 2024.

Being in Canada's top 3 largest wood export markets, Vietnam is also the only country to grow exports in 2024. The proportion of imports from Vietnam also expanded from 15.6% in January 2024 to 19.8% in January 2025. It shows that Vietnamese wooden furniture products are of interest to Canadian consumers.

It is worth noting that in 2024, Canada's wooden furniture imports reached USD 2.2 billion, down 2.8% compared to 2023. This trend continued in January 2025, when the value of wooden furniture imports reached USD 183.98 million, down 4.1% compared to the same period in 2024.

The three items Canada imports the most from Vietnam are wooden frame chairs, living room and dining room furniture, and bedroom furniture, all of which increased their market share here in January 2025. The most significant increase was in bedroom furniture, reaching more than 35% market share.

To boost the export of wooden furniture to the Canadian market, the Import-Export Department noted that consumers in this country prefer sustainable, FSC-certified, modern, minimalist, and environmentally friendly products.

In addition, businesses need to comply with safety, durability, and fire resistance standards (CSA Group, UL, ANSI/BIFMA) and take advantage of the CPTPP Agreement's tariff benefits to increase competitiveness.