The Top 6 Wood Products Driving Vietnam’s Export Market

1. Wooden furniture

Wooden furniture is one of Vietnam’s primary export products, constituting nearly 40% of the total export value of wood and wood products. The Americas are the main destination, accounting for nearly 80% of Vietnam’s furniture export turnover.

Furniture exports are categorized into five main groups: living room and dining room furniture, bedroom furniture, kitchen furniture, and office furniture. Among these, living and dining room furniture holds the largest share, with a 16% market share in total export turnover.

In 2023, the wood industry faced challenges due to global economic fluctuations, leading to a 10-30% decline in demand for all wood products. Wooden furniture saw a significant decrease, with exports dropping by 22.5%.

Wooden furniture is one of Vietnam’s primary export products, constituting nearly 40% of the total export value of wood and wood products. The Americas are the main destination, accounting for nearly 80% of Vietnam’s furniture export turnover.

Furniture exports are categorized into five main groups: living room and dining room furniture, bedroom furniture, kitchen furniture, and office furniture. Among these, living and dining room furniture holds the largest share, with a 16% market share in total export turnover.

In 2023, the wood industry faced challenges due to global economic fluctuations, leading to a 10-30% decline in demand for all wood products. Wooden furniture saw a significant decrease, with exports dropping by 22.5%.

Export Structure and Key Products

Several HS codes represent a substantial portion of the furniture group and are particularly popular in the US market:

• Furniture department (HS 940390): $1.04 billion, down 28.6% from 2022
• Wooden bedroom furniture (HS 940350): $1.18 billion, down 18.7% from 2022
• Wooden kitchen furniture (HS 940340): $970.26 million, down 8.2% from 2022
• Office furniture (HS 940330): $254.27 million, down 28.6% from 2022
• Other seats (HS 94016990): $539.9 million, down 32.1% from 2022
• Seat parts, other types (HS 94019099): $40.51 million, down 12.4% from 2022

Kitchen Cabinets: The main export item within kitchen furniture, consistently generating $600 million annually, accounting for 44% of the total turnover in this category. The primary markets are the US, Japan, the UK, and Chile.

Bedroom Furniture: Beds and wardrobes dominate this category. Beds and bed parts comprise 55%-60% of the export turnover, while bedroom cabinets account for 25%-30%.

Vietnam’s wood industry, despite recent challenges, continues to be a major player in the global market, driven by its diverse and high-quality product offerings.

2. Wood, boards and flooring

Vietnam’s wood processing industry produces various types of wooden boards, which are crucial for construction and furniture manufacturing.

In 2023, wood, planks, and flooring products reached a turnover of $1.8 billion, accounting for 13.4% of the total export turnover of the entire wood industry. According to the Vietnam Wood and Forest Products Association, Vietnam’s plywood and composite wood products were exported to 81 countries and territories. The main markets include the United States, South Korea, Malaysia, and Japan.

Statistics from the International Trade Center (ITC) show that since 2018, Vietnam has consistently been in the Top 5 largest plywood and flooring export markets globally, with export values increasing from $774 million in 2018 to $1.2 billion in 2021 and $1.1 billion in 2022.

Vietnamese board products often meet international standards for quality, including durability, load-bearing capacity, and color fastness. Manufacturers comply with standards such as ISO, E1, and E0 to ensure user safety and environmental friendliness. That is why Vietnamese wood products are favoured for import, aside from competitive pricing. For example, KES Dong Phu Factory in Binh Phuoc is one of the world’s top 10 most modern MDF board factory systems, with a capacity of 400,000 m³/year, providing high-quality wooden boards to demanding global markets.

3. Wood Chips

Wood chips are a significant export product of Vietnam’s wood processing industry. In 2018, Vietnam exported over 10.3 million dry tons of wood chips, generating an export turnover of $1.34 billion. By 2023, wood chip exports increased by nearly 4 million tons, reaching 14.42 million tons with an export turnover of $2.2 billion. Wood chips account for 16% of the total export turnover of Vietnam’s wood industry, second only to wooden frame chair products.

In 2023, Vietnam exported wood chips to 13 markets, with China and Japan being the largest, accounting for 92% of total output and export turnover. Export prices to China, Japan, and Korea saw a strong increase throughout 2022 and early 2023, stabilizing around $145-$172 per ton.

Vietnam holds a 30% share of the global wood chip market, playing a crucial role in providing raw materials for major products worldwide. Unlike other wood chip suppliers like Australia and South Africa, Vietnam’s supply chain includes the participation of hundreds of thousands of households in afforestation, many of which are poor households in highland areas. This large number of participating households highlights the social importance of the industry, helping to keep prices low and providing economic opportunities for impoverished families. Additionally, wood chip production in Vietnam does not require high technology, investment capital, or advanced management skills, making it an accessible avenue for poverty alleviation and sustainable development.

The primary raw materials for wood chips include acacia, eucalyptus, rubber, and pine, with acacia wood accounting for 98% of both the volume and value of chip exports.

Key Points

• Export Growth: From 10.3 million dry tons in 2018 to 14.42 million tons in 2023.
• Major Markets: China and Japan, making up 92% of the market.
• Export Prices: $145-$172 per ton in key markets.
• Global Market Share: Vietnam holds a 30% share of the global wood chip market.
• Social Impact: Participation of numerous small households, particularly in highland areas, contributes to poverty alleviation.
• Primary Wood Types: Predominantly acacia, which makes up 98% of the raw materials.

Vietnam’s wood chip industry, with its robust growth and significant global market share, demonstrates the vital role it plays in both economic and social contexts.

4. Wood Pellets

In 2023, the Vietnam Wood and Forest Products Association reported that pellet exports reached 4.67 million tons, generating an export turnover of $679.59 million. This marked a 4.3% decrease in volume and a 13.7% decrease in value compared to 2022. Wood pellets account for 5.2% of the total export turnover of the wood industry, making Vietnam the second-largest pellet-producing country in the world, trailing only the United States.

Despite the decline in 2023, Vietnam’s wood pellet industry experienced significant growth over the five-year period from 2018 to 2023, with a 53% increase in total export value and output. The average turnover rose sharply from $300-362 million to $787 million in 2022 and $680 million in 2023.

Vietnam’s wood pellets were exported to 22 countries and territories in 2023, with South Korea and Japan being the largest import markets, accounting for 96% of the total volume and 96.6% of the total export turnover. These pellets serve as input materials for thermal power plants in these countries.

Production and Raw Materials

Pellets exported to Japan are primarily produced from FSC-certified wood from Vietnam’s domestically grown forests. According to the General Department of Forestry, the industry exploited about 19 million cubic meters of firewood in 2023, which is the main input material for wood chip and pellet production.

For South Korea, the production of wood pellets and wood chips is mainly from by-products of the wood processing and manufacturing industry, such as wood scraps, chips, shavings, and sawdust. The Southeast provinces, home to export wood processing enterprises, also house Korean export pellet enterprises.

Vietnam’s wood pellets are primarily used for biofuel. While Japan uses Vietnamese pellets mainly for thermal power plants, South Korea uses them for fuel in fireplaces and industrial boilers.

Pricing and Contracts

Long-term contracts (10-15 years) for Vietnamese pellets typically fluctuate around $145-$165 per ton (FOB Vietnam). In addition to long-term contracts, some businesses engage in short-term contracts, with prices around $125 per ton (FOB), maintaining quality equivalent to long-term contracts.

Industry Structure and New Developments

As of 2022, there are about 83 enterprises involved in pellet export in Vietnam. Approximately 87% of these enterprises operate on a scale of less than 50,000 tons per year, while about seven enterprises have a scale of 0.1-0.5 million tons. These 83 businesses include self-production groups and commercial groups supporting approximately 300 small pellet factories nationwide.

Since 2022, around 70 new factories have been built. Among these, 20 large factories use EU technology, while 50 factories use Vietnamese and Chinese technology. This development ensures a stable and high-quality supply, boosting Vietnam’s pellet export capacity.

Key Points

• Export Figures: 4.67 million tons in 2023, $679.59 million turnover.
• Market Share: 5.2% of total wood industry export turnover; second-largest globally.
• Primary Markets: South Korea and Japan.
• Raw Materials: Mainly FSC-certified wood for Japan; wood industry by-products for Korea.
• Pricing: Long-term contracts at $145-$165/ton; short-term contracts at $125/ton.
• Industry Structure: 83 enterprises; significant new factory developments since 2022.

5. Wooden Chairs

In 2023, Vietnam’s chair export turnover reached $2.83 billion, accounting for 21.5% of the industry’s total export turnover. Cushioned chairs (HS 9401.6100) generated the highest revenue, reaching $1.87 billion. This product alone accounts for 66% of the total export turnover of seating products and 15% of the total export turnover of Vietnam’s wood. It is one of the few products that saw growth in 2023.

Other Chair Groups with Lower Revenue

1. Chairs with Backrests (HS 94016910): Reached $9.5 million, down 50.7% compared to 2022.
2. Other Seats (HS 94016990): Reached $539.9 million, down 32.1% compared to 2022.

In the US market, 4 out of every 10 imported chairs are “Made in Vietnam.” A recent survey by consulting firm Accenture in 20 countries found that over two-thirds of respondents plan to conduct most of their social activities at home or at friends’ homes. Post-Covid, many countries, especially the US, have embraced working from home, increasing the demand for office furniture, particularly chairs.

Popular Types of Wooden Chairs Exported from Vietnam

• Dining Chairs:
  • Material: Oak wood, teak wood, rubber wood.
  • Design: Simple and modern, often paired with dining table sets.
• Relaxing Chairs:
  • Material: Ironwood, rosewood.
  • Design: Comfortable, often with cushions and armrests.
• Office Chairs:
  • Material: Oak, rubber wood.
  • Design: Simple and convenient, supporting long-term sitting and working posture.
• Wooden Sofas:
  • Material: Teak wood, ironwood.
  • Design: Luxurious, comes with thick cushions.
• Outdoor Chairs:
  • Material: Teak wood, oak wood.
  • Design: Weather-resistant, often with a protective coating.

Key Points

• Total Export Turnover: $2.83 billion in 2023.
• Cushioned Chairs: $1.87 billion, 66% of seating products export turnover.
• US Market Share: 40% of imported chairs are from Vietnam.
• Popular Chair Types: Dining chairs, relaxing chairs, office chairs, wooden sofas, and outdoor chairs.
• Materials Used: Oak, teak, rubber wood, ironwood, and rosewood.
• Design Focus: Simple and modern for dining chairs; comfortable for relaxing chairs; supportive for office chairs; luxurious for wooden sofas; and weather-resistant for outdoor chairs.

Vietnam’s chair export industry remains diverse and adaptable, catering to various international market needs with high-quality, well-designed products.

6. Handicrafts

In the first five months of the year, the export turnover of rattan, bamboo, sedge, and carpet products reached $334.5 million, up 15.4% compared to the same period in 2023. This growth is attributed to product diversification and market expansion. The United States led with $31.5 million, followed by Japan and the UK. In 2023, the industry’s exports neared $700 million, with the US, Japan, and India as the top markets, the US accounting for 40% of total turnover.

Historical Context

Vietnamese handicrafts have a rich tradition spanning generations, deeply intertwined with the country’s thousand-year history of civilization. Since 1010, when the feudal capital was relocated to the banks of the Red River, numerous handicraft villages emerged to create sophisticated products for the court, and aristocracy, and to facilitate religious and diplomatic relations with Chinese dynasties.

Influence and Craftsmanship

The skill and creativity of Vietnamese handicraft artists significantly impact both local lives and Vietnam’s global image. Traditional handicrafts include a diverse range of products made from wood and bamboo:

• Papermaking
• Hat making
• Wood carving
• Mat weaving
• Folk painting
• Paper fan making
• Drum making
• Toy making
• Puppet making
• Bamboo and rattan crafting
• Lute and flute-making
• Carpentry
• Comb making

Explore the journey of Vietnam’s bamboo and rattan industry from traditional craft villages to building an international brand in this article. Read more to understand the important steps and development potential of this industry here.

Conclusion

It can be seen that the Vietnamese wood industry is increasingly asserting its position in the international market. Vietnamese wood products not only meet the diverse needs of global consumers but also demonstrate the creativity and high skills of manufacturers. With the potential for sustainable development and market expansion strategies, the wood industry promises to continue to be one of the key export sectors, contributing to increasing the economic value of Vietnam in the coming years.

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There are the series blog will help you understand the Vietnam Timber’s industry:

• Exploring Vietnam’s Export Wood Market Trends in 2024-2025
• Vietnam’s Timber Industry 2024: Overview, opportunities, risks and challenges
• Top Reasons to Import High-Quality Wood from Vietnam: Unlock Market Benefits Today!
• Top 7 types of wood favoured for import from Vietnam
• From Craft to International Brand: Vietnamese Bamboo and Rattan Weaving Journey