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Vietnamese wood manufacturers are facing increasing challenges. Photo: Anh Phuong

At the 5th Congress of the Vietnam Timber and Forest Products Association (Viforest), held on December 11 in Ho Chi Minh City, industry representatives expressed serious concerns over management gaps and called for stronger support from Viforest in trade promotion and policy advocacy.

Speaking at the congress, Le Duc Nghia, Chairman of An Cuong Wood JSC, stressed the importance of direct engagement and knowledge sharing to help businesses grow sustainably.

According to Nghia, Vietnamese wood manufacturers benefit from a highly skilled workforce and products capable of competing internationally. However, weak corporate governance remains a major issue.

Reflecting on his own journey, Nghia recalled that a decade ago, when An Cuong’s annual revenue reached VND 1 trillion (about USD 40 million), he struggled with operational management due to a lack of experience. This prompted a full restructuring and an investment of USD 1 million into digital transformation.

“Digital transformation has enabled An Cuong to streamline operations and maintain full control over our processes in the last five years,” Nghia said.

Vũ Quang Huy, CEO of Tekcom JSC, shared that his firm currently generates USD 100 million in annual revenue, with core products being plywood and kitchen cabinets. Still, the sector is under pressure from changing tariffs, stricter rules of origin, and transparency demands.

Huy outlined the biggest challenges: rising input costs amid declining sale prices, legal risks related to raw material sourcing, and potential supply chain disruptions as many firms must now import their own materials.

He proposed three key solutions: enhancing source traceability, fostering partnerships and specialization, and restructuring supply and value chains.

“If Vietnamese wood firms strengthen their collaboration, our supply chains could rival those of Thailand or China,” he emphasized.

Craft villages face decline without digital skills

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Deputy Minister of Agriculture and Environment Nguyen Quoc Tri speaks at the congress. Photo: Anh Phuong

Nguyen Thi En, Permanent Vice President of the Van Diem Traditional Woodcraft Village Association, voiced concerns over the future of traditional woodworking.

She noted that handcrafted wood products  -  rich in cultural heritage  -  are being squeezed out by mass-produced goods and shifting consumer preferences.

Many traditional designs no longer suit modern tastes, making it hard to access premium or younger markets. Even though Vietnamese crafts are admired in Europe, most local producers still fall short of international standards.

Digitalization and e-commerce also pose a steep challenge. Most woodcraft households operate under family-based models, lack interconnection, and have no formal marketing strategy, En said. Meanwhile, the market is evolving rapidly and demands a higher level of digital readiness.

For long-term survival, En urged that these villages be restructured into larger, interconnected clusters to boost competitiveness.

“Government bodies and Viforest must offer stronger support in trade promotion, product innovation, and digital training for craft households,” she said. “Only by preserving traditional value while adapting to market demands can these villages thrive.”

A call for strategic reforms and legal compliance

In his address, Deputy Minister of Agriculture and Environment Nguyen Quoc Tri praised Viforest’s contributions to the wood export and processing industry.

To help businesses meet stricter regulations  -  particularly those regarding legal timber and emissions  -  he urged the association to rethink its strategies and accelerate the implementation of its plans.

For the 2025–2030 term, the Deputy Minister outlined key priorities for Viforest: continued support for business development, deeper involvement in policymaking, market expansion, and encouraging the production of high-value products.

He emphasized the need for a transparent, eco-friendly wood processing industry that aligns with international standards. Viforest, he said, should play a central role in building a legal timber supply chain for Vietnam.

The congress also approved amendments to Viforest’s charter and elected 31 members to the Executive Board for the new term. Nguyen Quoc Khanh, Chairman of AA Corporation, was elected President of the Association.

Anh Phuong