return icon

Vietnamese woodwork industry: the path to $20 billion goal

More and more foreign invested enterprises (FIEs) in Vietnam have begun exporting woodwork products as Vietnamese enterprises increasingly lose market share.

FDI in the woodwork industry has been increasing rapidly in recent years, especially since the US-China trade war.





The Foreign Investment Agency (FIA) reported that there were 966 FIEs in the industry, an increase of 11.4 percent compared with 2018 with total investment capital of $6.3 billion, up by 13.2 percent.

Of these, 663 FIEs export wood and wood-made products, accounting for 15 percent of 4,464 enterprises in the industry, up by 26 percent.

Export turnover from FIEs has increased rapidly. In 2019 it was nearly equal to that of Vietnamese enterprises. The enterprises exported $4.95 billion worth of products in 2019, or 48 percent of the total export turnover of $10.3 billion.

The growth rate obtained by FIEs in that year exceeded the growth rate obtained by Vietnamese enterprises, 25 percent vs 19 percent.

More and more foreign invested enterprises (FIEs) in Vietnam have begun exporting woodwork products as Vietnamese enterprises increasingly lose market share.

The targeted markets of FIEs are still the traditional markets of Vietnam’s woodwork industry. 

The woodwork exports by FIEs to seven markets with export turnover of $50 million or higher were below expectations. In 2019, only five markets had turnover of over $100 million.

Of these, the US was the biggest importer ($3.5 billion in import turnover) and fastest growing market (up by 35 percent). Meanwhile, the export turnover to China and South Korea decreased by 24 percent and 31 percent, respectively.

Analysts say that boosting export is difficult as Vietnam is one of the countries that has suffered from material shortage in Covid-19.

Do Xuan Lap, chair of Vinafores, said FIEs bear direct impacts from Covid-19 because of close relations with China.

There has been no official assessment about the impact of the epidemic on FIEs in the woodwork industry, but Lap’s analysis is reasonable. First, there are many Chinese invested enterprises operating in the industry in Vietnam. The policies on travel limitations have directly affected Chinese workers at factories.

Second, FIEs in the woodwork industry not only include enterprises owned by investors from China, but also from other countries which depend on Chinese material supplies. Covid-19 might have caused interruption in the material supply chain.

FIEs act an important link in Vietnam’s production chain which aims to export $20 billion worth of products by 2025. Therefore, To Xuan Phuc from Forest Trends believe that it is necessary to have policies to connect FIEs and Vietnamese enterprises.

Mai Lan 


Supply chain interrupted, VN woodwork processors go online

Supply chain interrupted, VN woodwork processors go online

E-commerce is one of the best solutions for woodwork enterprises to cope with the Covid-19 epidemic, which has led to a sharp fall in demand.

VN woodwork exports face new regulation on customs inspection

VN woodwork exports face new regulation on customs inspection

The new regulation on certificate of origin (C/O) makes it more for Vietnam to obtain $11 billion in woodwork exports this year as planned.


HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.

HCM City collects US$7 million of taxes, fines from people with Google incomes

Ho Chi Minh City has collected taxes and fines worth a total of 169 billion VND (7.26 million USD) from 38 individuals who earned incomes through Google in the first half of the year.


Vietnam develops world’s first effective vaccine against ASF: German newspaper

Samsung emerges as largest foreign investor in Vietnam

Vietnam has attracted more than US$14 billion in foreign direct investment (FDI) in the first half of 2022, and electronic giant Samsung has attained its position as the largest investor thanks to its additional large-scale investments.


Vietnam’s economic growth accelerates on back of exports, manufacturing: Bloomberg

Some 155 Vietnamese athletes to partake in ASEAN Para Games 2022

The ASEAN Para Games 2022 is a qualifier for athletes to win tickets to Paralympic Paris 2024.

Anti-corruption drive - an irreversible trend in Vietnam, says Party leader

Party General Secretary Nguyen Phu Trong reiterated the Party’s strong stance on combatting corruption among ranking officials while addressing an anti-corruption conference in Hanoi on June 30, stating that it will be an enduring policy.

Vietnam’s African swine fever vaccine to be widely used by late 2022

The vaccination is expected to be carried out in Vietnam from July to the end of this year.

Noi Bai International Airport’s domestic flight volume grows rapidly

Noi Bai International Airport’s domestic flight volume has been growing rapidly, 40 per cent higher than the peak time of summer in 2019, before the COVID-19 pandemic.

Magazines exceeding their functions need to be eliminated: journalist

Many magazines go beyond their functions and produce content beyond the principles and purposes stated in licenses.

Investors to be able to trade stocks on T+2 settlement cycle

According to the new draft, securities will be transferred to investors' accounts within the trading hours of T+2.

Vietnam jumps eight notches in international beauty ranking

Vietnam has moved up eight positions to 42nd in the grand slam ranking for beauty over the past two years, announced international beauty site Globalbeauties.

Thailand Fashion Week 2022 features Vietnamese culture

A Vietnamese collection imbued with Vietnamese culture dubbed 'Sounds Of Vietnamese And Colours Of Five Continents' kicked off Thailand Fashion Week in Bangkok on June 30.

Small alleys offer authentic taste of Hanoi cuisine

Small and sneaky alleys in the Hanoi Old Quarter not only offer enjoyable experiences of the capital city’s time-honoured culture but also the authentic taste of Hanoi cuisine.