In Binh Duong, a leading Vietnamese wood processing company reports that order books for the remaining months of 2024 are nearly full, with contracts now being signed for the first quarter of the next year. Company executives note a market improvement compared to the previous year, with orders for the US, EU, and China increasing by 20-30%.

Preliminary data from the General Department of Customs for August 2024 shows wood export revenue at over $1.45 billion. Cumulatively, from January to August 2024, the revenue reached $10.97 billion, marking a 19.7% increase from the previous year.

Notably, wood and wood products alone contributed $10.24 billion, up by 20.6%, while rattan, bamboo, rush, and carpet products added $552 million, a 13.6% increase.

The US remains the largest market, absorbing nearly $4.9 billion worth of Vietnamese wood products, a 26% increase year-over-year and accounting for 55% of the industry's total export value. China follows with $1.2 billion, up 39.1%, and Japan with $961.3 million, a slight increase of 1.5%.

Despite these impressive figures, the wood industry faces new challenges, including stringent international regulations such as the European Union's anti-deforestation laws, the Lacey Act in the US, and the proposed carbon border adjustment mechanism by the European Commission.

Additionally, high sea freight costs and rising raw material prices continue to pressure the industry. Looking ahead, Vietnam's wood and wood product exports face multiple challenges for the remainder of 2024.

In response, the Vietnamese government has approved a national forestry plan for 2021-2030 with a vision toward 2050, aiming for an average annual forestry production growth of 5-5.5%.

The plan sets ambitious export targets of $20 billion by 2025 and $25 billion by 2030, with domestic market consumption goals of $5 billion and $6 billion, respectively.

To achieve these targets, Vietnam is focusing on modernizing equipment and technology to produce high-quality, value-added products and prioritizing the development of a high-tech forestry center and an international wood products trading hub.

Tam An