Wood industry is flexible in the face of market fluctuations

Photo caption — Production of curved plywood for export at the factory of Nhat Nam Plywood Company Limited, An Dien commune, Ben Cat district, Binh Duong province. Photo: Vu Sinh/VNA

Most recently, information from the Ho Chi Minh City Handicraft and Wood Processing Association said that on September 25, US President Donald Trump announced a tax of up to 50% on kitchen cabinets, bathroom cabinets and some furniture, effective from October 1. This is a big challenge for the wood furniture industry because the US is the main market. Because of this, wood processing and exporting enterprises have quickly sought a direction for the entire industry.

Vietnam is currently in the top 3 countries exporting wood to the Canadian market. Information from the Vietnam Timber and Forest Products Association shows that Canadian consumers still pay great attention to Vietnamese wooden furniture products. The three main product groups that Canada imports from Vietnam include wooden frame chairs, living room and dining room furniture, and bedroom furniture. Notably, bedroom furniture leads with more than 35% market share, demonstrating the special appeal of this product in the Canadian market. This success comes not only from product quality but also thanks to the ability to meet the modern consumer tastes of Canadians - who are looking for sustainable, minimalist and environmentally friendly furniture. The Import-Export Department ( Ministry of Industry and Trade ) recommends that businesses focus on products with FSC (Forest Stewardship Council) certification, meeting sustainability standards - a factor that Canadian consumers particularly value. In addition, strict standards on safety, durability and fire resistance such as CSA Group, UL or ANSI/BIFMA also need to be strictly followed to ensure the product is competitive.

Wood industry experts analyze that the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), of which both Vietnam and Canada are members, brings significant tariff advantages, helping Vietnamese businesses reduce costs and increase their attractiveness to competitors. Canada is not only a large consumer market but also a "giant" in the wood industry, with an annual wood output of up to 600 million m3, among the top 10 furniture producing countries in the world. However, the paradox is that Canada's domestic furniture industry only meets about 50% of domestic consumption demand, according to information from the Vietnam Trade Office in Canada. This leads to Canada having to import a large amount of wooden furniture each year, especially competitively priced products that the domestic industry cannot meet. Vietnam, with its advantages in price, quality and flexibility in production, is becoming the top choice to fill this gap.

According to Director of the Forestry and Forestry Department Tran Quang Bao, to conquer the world's consumers in general and Canada in particular, Vietnamese wood and wooden furniture exporters investing in modern, minimalist and environmentally friendly designs is the key factor to meet consumer tastes. In addition, products not only need to be beautiful but also durable, safe and have sustainable value - criteria that are increasingly prioritized by consumers.

Mr. Phung Quoc Man, Chairman of the Handicraft and Wood Processing Association of Ho Chi Minh City (Hawa) said that currently, other markets have not yet created tariff barriers like the US market, so Vietnamese wood processing and exporting enterprises should take full advantage of free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to help businesses reduce tariff costs, thereby improving competitiveness compared to competitors outside the bloc such as China or India, South American countries, the Pacific region... In addition, the wood industry focuses on increasing added value, switching to a proactive design model and online distribution.

Also according to Mr. Phung Quoc Man, Chairman of the Handicraft and Wood Processing Association of Ho Chi Minh City (Hawa), in the first 8 months of 2025, Vietnam's wood and wooden furniture export turnover reached 11.1 billion USD, an increase of 6.5% over the same period in 2024. It is forecasted that in the last months of 2025, Vietnamese wood will face many challenges in the export market, so Hawa has proposed that businesses not only shift the market to ensure growth as set out from the beginning of 2025, but also focus on the domestic market to ensure development.

Mr. Nguyen Quoc Khanh, Chairman of AA Corporation - the company that owns Nha Xinh furniture supply chain, said that Nha Xinh is focusing on the domestic market and is increasingly expanding. Nha Xinh furniture supply chain has 6 stores in Ho Chi Minh City and Hanoi , selling most of its products designed and manufactured at AA Tay Ninh factory, which both supplies goods to the retail system and constructs for high-end and international hotels and resorts. With designs that focus on comfort, convenience, and diverse functions, it is easy for customers to visualize and choose products. Currently, the domestic market has an average growth rate of 5% to 10%, thanks to urbanization and improved living standards, so this is an opportunity for the Vietnamese wood industry to transform itself in the face of difficulties in the import market.

To resolve the anticipated difficulties, Ms. Nguyen Cam Trang, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that the Ministry of Industry and Trade is still chairing technical-level negotiations, especially regarding the issue of transit. Currently, the US side has not provided any definition or guidance related to this content. This is an issue that needs to be clarified soon so that businesses can proactively develop production plans. Therefore, businesses should take advantage of free trade agreements and diversify outputs to ensure growth for the entire wood industry.

Source: https://baotintuc.vn/kinh-te/nganh-go-linh-hoat-truoc-bien-dong-thi-truong-20250930082200790.htm