Wood and Forestry Exports Reach Nearly USD 8 Billion in H1 2024

Vietnam’s Wood and Forestry Exports Reach USD 7.95 Billion in H1 2024

According to data from the Department of Forestry (Ministry of Agriculture and Rural Development), Vietnam’s exports of wood and forestry products reached USD 7.95 billion during the first half of 2024, marking a 21.2% increase year-on-year and achieving 52.3% of the full-year target. Key markets saw significant growth: the United States totaled USD 4.38 billion (up 27.6% year-on-year), while China recorded USD 1.059 billion (up 46.6%).

On the import side, Vietnam’s wood and wood product imports in H1 2024 are estimated at USD 1.29 billion, a 19% rise compared to the same period in 2023.

THE U.S. REMAINS VIETNAM’S LARGEST MARKET FOR WOOD EXPORTS

In a deeper analysis of export markets, Mr. Ngô Sỹ Hoài, Vice Chairman and General Secretary of the Vietnam Timber and Forest Products Association (Viforest), confirmed that the United States remains the country’s largest destination for wood and forestry exports.

Specifically, wood and wood product exports to the U.S. hit USD 4.38 billion in the first half of 2024—accounting for 55% of the total industry export value. The strong growth in U.S. demand indicates a rapid recovery in that market.

“The entire timber and forestry sector posted an estimated trade surplus of USD 6.664 billion in H1 2024, up 21.6% year-on-year. Among them, wood and wood products generated the largest surplus—USD 6.16 billion, up 22.5% compared to the same period last year.” — Data from the General Department of Forestry.

WOOD FURNITURE, A HIGH-VALUE EXPORT TO THE U.S.

Wooden furniture remains the primary export to the U.S. and delivers high added value. In H1 2024, revenues from wooden furniture exports to the U.S. reached USD 3.45 billion, up 30% year-on-year. Nearly all categories of wood furniture sent to the U.S. showed positive growth. Exports of timber, boards, and flooring to the U.S. totaled USD 323 million—a remarkable 94% increase year-on-year.

ROBUST GROWTH TOWARD CHINA

Exports of wood and wood products to China also grew strongly. In the first half of 2024, value exceeded USD 1 billion—up 46.6% year-on-year. Notably, China’s imports of office wood furniture from Vietnam rose sharply, constituting 24.7% of China’s total office furniture imports from abroad.

In contrast, China’s overall imports of wooden furniture dropped 15.1% year-on-year in that same period. Major suppliers like Italy—the largest source of wooden furniture to China—saw 10.5% decline, accounting for 49.8% of China’s total wooden furniture imports. Germany trailed with a 22.1% decrease. Vietnam has overtaken Thailand to become the third-largest source of wooden furniture imports into China during the first half of the year.

Despite this progress, Vietnam’s share remains relatively modest, signaling room for further market penetration.

STRATEGIES FOR THE SECOND HALF OF 2024

Looking ahead, the Department of Forestry plans to continue implementing development and sustainability measures for the wood and forestry export industry; coordinate efforts to curb trade fraud; and build adaptive scenarios for import-export operations to ensure full-year targets are met. It will also promote successful linkages across the supply chain.

TRADE DEFENSE RISKS AHEAD

According to Viforest, the U.S. Department of Commerce (DOC) recently announced new trade defense measures on imported goods. This move has sparked concern among exporters, as it may impact Vietnamese wood product manufacturers exporting to the U.S.

The DOC outlined five key amendments related to anti-dumping, countervailing duties, and circumvention investigations—including:

1. Removing the previous prohibition on investigating cross-border subsidies.

2. Classifying government waivers of fees or penalties (e.g. wastewater treatment charges, occupational safety fines) as subsidies.

3. Extending substitution country considerations to non-market economies like Vietnam.

4. Permitting substitution values in dumping margin calculations.

5. Standardizing adverse facts available in subsidy investigations.

Vietnam’s wood sector has already faced anti-dumping and circumvention cases in the U.S., notably involving plywood and wooden cabinets. With these new regulations, Mr. Ngô Sỹ Hoài warns that Vietnamese exporters face greater risk of being targeted by U.S. trade defense actions.

Viforest therefore urges industry players to diversify export markets and product lines; compete on quality rather than pricing; and prioritize using plantation timber—either domestically sourced or from non-dutiable suppliers under U.S. anti-dumping rules.

FORESTRY AFFORESTATION & ENVIRONMENTAL PAYMENTS

In the first half of 2024, Vietnam planted 125,500 hectares of concentrated forest—51.2% of the annual target, up 1.2% year-on-year—and dispersed planting reached 44.6 million trees, up 2.9% year-on-year. The full-year target stands at 245,000 hectares and 130 million dispersed trees.

Regarding payment for forest environmental services, by mid-2024 total revenue reached VND 1,521.16 billion. Of this, VND 1,281.58 billion (covering four service types as defined in Decree 156/2018/ND-CP) accounts for 39.3% of the 2024 collection target and 92.3% of the level achieved in H1 2023; VND 239.58 billion was collected under ERPA provisions per Decree 107/2022/ND-CP.

Source: vneconomy.vn