Sustainable Solutions for Ho Chi Minh City’s Wood Product Exports
Ho Chi Minh City remains Vietnam’s pivotal hub for wood product manufacturing and export, contributing nearly 50% to the country’s wood export value. Experts emphasize that sustaining and advancing this status hinges on embracing green and digital transformations in the wood industry.
Export Performance and Market Dynamics
In the first nine months of 2025, Vietnam’s wood and furniture sector reached an export value of $15.2 billion USD, marking a 7.48% increase year-on-year. Interior furniture, seating, woodchips, plywood, and wood pellets showed positive growth. The US is the largest export market, accounting for 46% of sector exports ($6.97 billion USD), followed by Japan (12.5%) and China (11.3%).
Key Challenges
Despite growth, the industry faces hurdles:
- FOB Export Term Complexity: Foreign manufacturers like Starwood Furniture note that paying local transport charges in USD without VAT refunds inflates costs by 5%, urging reevaluation of VAT policies.
- Market Expectations: Buyers increasingly demand transparency in raw material origin, production processes, environmental compliance, and corporate social responsibility.
- Global Market Changes: Rapid shifts require adaptable industry strategies focusing on sustainability and traceability.
Strategic Green and Digital Transitions
Vietnamese wood industry leaders advocate for:
- Establishing support centers focused on green and digital transitions.
- Implementing "low-emission factory" models with CO₂ measurement, reduction, and low-carbon certifications.
- Developing green industrial clusters with shared infrastructure for waste and pollution treatment, renewable energy, and logistics to help small enterprises “green” affordably.
- Introducing policy reforms like a “first sale” mechanism to reduce import tariffs, factory modernization incentives, and export receivable insurance to enhance competitiveness and production confidence.
Government Vision and Industry Priorities
Chairman Nguyen Van Duoc of Ho Chi Minh City highlights four priority directions to elevate the wood industry internationally and sustainably:
- Creating green and smart industrial clusters linked to the southern economic region.
- Accelerating green and digital transformation, fostering circular supply chains, and supporting Vietnam’s Net Zero commitment.
- Building a city-branded wood industry with distinctive creativity, high design value, and export-ready “Made by Vietnam” products.
- Enhancing regional cooperation, attracting technological investments, and developing skilled human resources.
Conclusion
To cement its role as Southeast Asia’s wood product capital, Ho Chi Minh City’s wood industry must adopt dual green and digital transitions, supported by coherent policies and active enterprise engagement in innovation and cultural integration. This strategic approach aims to secure sustainable growth, improve global competitiveness, and firmly establish Vietnam on the international wood export stage.
Source: Nhan Dan Online, November 2025
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