In 2025, Vietnam’s wood industry is targeting $18-18.5 billion in total export value, up 10-15 per cent on-year.

Photo: baodautu.vn

In a talk with VIR, Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association (Viforest), revealed that under normal conditions, the goal would be achievable. However, in the current context of global trade turbulence, it is hard to determine whether the target will be realised.

US President Donald Trump recently instructed the Department of Commerce to investigate under Section 232 of the 1962 Trade Expansion Act regarding wood and wood products. This could result in tariffs of up to 25 per cent on sawn wood and forestry products, effective as of April 2.

The US is accounts for over half of Vietnam’s wood exports, primarily furniture, interior and exterior wood products, carpentry, and refined products, with some plywood, laminated boards, and several other products also being exported.

Hoai noted, “In light of these changes in tax policies, Vietnamese wood businesses are on tenterhooks about the impact on Vietnam’s wood export performance.”

Huynh Quang Thanh, chairman of Hiep Long Fine Furniture Company, noted that the US has recently announced the imposition of countervailing tariffs on all goods imported from India, which will take effect from April 2. This raises concerns that President Trump may impose similar tariffs on Vietnam’s wood industry.

“If the US imposes a 25 per cent countervailing tariff on Vietnam’s wood industry, it could badly affect domestic companies, including Hiep Long. We have just received orders through April,” Thanh said.

As of now, many businesses are reporting confirmed orders until April-May, with lower production volumes compared to the same period last year.

The reason is that US buyers are hesitant, fearing that tariffs would lead to inventory build-up, they therefore have not finalised orders.

In response, Viforest and businesses in the sector have been preparing to participate in hearings if the US requests proof that the trade relationship between Vietnam and the US in the wood sector is mutually beneficial.

In this respect, Hoai argued, “We do not compete or disrupt US production. Vietnam not only exports to the US but is also the second-largest market in the world, after China, for the consumption of US’ logs and sawn timber.

The imported wood volume is used to meet domestic demand, and it is also processed and exported to various markets. Many products using US wood are also exported back to this country. This is a mutually beneficial trade relationship that adds value for both sides.”

Amid reduced buyer confidence due to market tensions, Hiep Long is striving to expand into new markets, including the Middle East- a promising market with an increasing number of resort projects.

Hiep Long has secured a few orders in this market, and the company is focusing on participating in international trade fairs to promote and directly reach Middle Eastern customers.

“We hope the government will reduce import taxes on US furniture to zero per cent to mitigate risks in the forthcoming period,” Thanh proposed.

Sharing the difficulties of the wood industry, Do Ngoc Hung, trade counsellor and head of the Vietnam Trade Office in the US, noted, “The biggest challenge right now is that Vietnam is not yet considered a fully market-oriented economy, which leads to disadvantages in US anti-dumping and countervailing investigations. Meanwhile, the US is also concerned about the trend of shifting production and investment from some countries to Vietnam to take advantage of labour cost benefits and a competitive environment.”

Hung therefore suggested relevant ministries, industries, and business associations to consider importing raw wood materials from the US to reduce the trade deficit and avoid origin-related lawsuits.

On the side of firms, caution needs to be exercised regarding raw material imports from countries that are subject to US tariffs.

At the same time, it is important to develop flexible production and business plans, as countries subject to US tariffs may strengthen trade protection measures, placing greater pressure on Vietnam.

In 2024, Vietnam’s wood and wood product export value surpassed $16.2 billion, up 20.9 per cent on-year, equivalent to $2.81 billion, further establishing Vietnam as one of the world’s leading exporters of wood and furniture products.

The SBV is expected to receive support to strengthen climate risk management, expand green finance, attract investment, adopt global best practices, and develop sustainable finance policies.

Financed by the German Ministry for Economic Affairs and Climate Action, the GFS programme aims to help central banks and financial institutions to integrate climate risk into regulatory frameworks and promote private sector engagement in sustainable finance.

Through this partnership, the SBV will be empowered to strengthen the Vietnamese financial sector’s ability to support climate investments, in line with the country’s Just Energy Transition Partnership (JETP).

EIB vice-president Nicola Beer said, “This partnership with the SBV will help unlock green financing, equip Vietnam’s financial sector with the tools to integrate climate risks, and accelerate funding for renewable energy, clean transport and resilient infrastructure. By strengthening green finance, the EIB is supporting Vietnam to draw investment, create economic opportunities, and build a future-proof economy that benefits both individuals and businesses.”

EU Ambassador to Vietnam Julien Guerrier said, “It is very encouraging that the EIB and the SBV are ready to join forces to strengthen the standards for managing climate risks and green financing in Vietnam. In turn, this should allow for public and commercial banks to accelerate financing for JETP actions.”

Deputy Governor of the SBV Nguyen Ngoc Canh said, “We highly value our partnership with the EIB in advancing green finance cooperation. The EIB’s GFS technical assistance programme will help strengthen our capacity in climate finance policy development, risk management, and private sector mobilisation, thereby unlocking new opportunities for climate investments. This collaboration supports Vietnam’s JETP and aligns with the European Union’s Global Gateway priorities for sustainable finance and climate action. We are confident that our combined efforts will fortify the resilience of our financial system and expedite Vietnam’s transition towards a low-carbon, sustainable economy.”

EIB Global has been a trusted partner of Vietnam since 1997, providing over €561 million ($611.3 million) in financing for sustainable transport, renewable energy, and climate action.

As part of its deepening engagement, the EIB is committed to establishing a €500 million ($544.8 million) framework loan with the Ministry of Finance to support JETP implementation. This financing will prioritise investments in renewable energy and sustainable transport, reinforcing the EIB’s role as a key Global Gateway partner in Vietnam’s green transition and sustainable economic growth.

The investor, Prodezi Long An JSC (Prodezi), and developer Huong Viet Investment Consulting JSC (Huong Viet Holding), held the ceremony in Ben Luc district on March 12.

The event also signified a major milestone as Long An welcomed its first eco-industrial park (IP), designed and constructed in compliance with domestic and global sustainability trends.

Prodezi EIP spans 400 hectares and is adjacent to the 100-ha LA Home eco-urban area. It is a pioneering eco-IP and one of the largest in the Mekong Delta region. The total investment for the venture exceeds $195 million. The first phase subdivision is expected to be completed and handed over to investors in the forthcoming third quarter.

Key components of phase one will be developed in parallel with the construction of transportation infrastructure, green spaces, power, and water supply systems, with a particular focus on completing a state-of-the-art wastewater treatment plant (smart and eco-oriented) and a green-certified administrative building.

Once operational, Prodezi EIP will generate thousands of jobs for workers in Long An and the surrounding area. With state-of-the-art amenities, including the LA Home eco-urban area, the industrial park will form a complete industrial-urban complex, providing a high-quality working environment and enhancing living standards for workers and professionals, attracting skilled talent to the region.

Additionally, Prodezi EIP is expected to become a prime destination for both domestic and international businesses, especially those pursuing sustainable production models that prioritise resource efficiency and CO₂ emission reduction. With its modern infrastructure, attractive investment incentives, and strong support from local authorities, Prodezi EIP enables businesses to optimise operational costs, meet environmental, social, and governance (ESG) standards, and enhance their competitive edge in the global market.

Also during the ceremony, Prodezi and Huong Viet Holding signed an MoU with Toho Gas, one of Japan’s three largest gas companies, to provide utilities and services for residents of LA Home and Prodezi EIP.

Last October, Prodezi and Huong Viet Holding signed an MoU with Japan’s Chitose Group and TA Vital for cooperation in wastewater treatment solutions for Prodezi EIP, aimed at delivering wastewater treatment solutions, functional organic fertilisers, and cultivating plants using a soil-free organic hydroponic system within the park.

Prodezi and Huong Viet Holding signed an MoU with Toho Gas

Prodezi EIP’s focus is on high-tech, environmentally friendly industries that produce high-value-added products and optimise labour resources. The industrial park will attract a diverse range of industries, including electronics, automotive manufacturing and assembly, supporting industries for high-tech sectors, textiles and footwear, food and beverages, logistics (including warehousing and cold storage), data centres, precision engineering, semiconductors, and AI.

Located at the intersection of DT830 Road and Luong Hoa – Binh Chanh Road (60m wide), Prodezi EIP is part of the My Quy Tay – Luon Hoa – Binh Chanh development corridor, one of six key infrastructure projects in Long An.

This prime location is adjacent to the entrance of the Ho Chi Minh City – Trung Luong Expressway, bordering Ho Chi Minh City, and near major highways such as Ben Luc – Long Thanh Expressway and national ring roads 3 and 4. Businesses in the area benefit from easy access to airports and seaports, reducing costs and enhancing supply chain efficiency.

Huynh Van Son, Vice Chairman of Long An People’s Committee, said, “Long An prioritises attracting investments that are modern, efficient, and sustainable. We believe the Prodezi Eco-Industrial Park will be an ideal destination for both domestic and international investors, generating thousands of jobs and making a significant contribution to the province’s socioeconomic development.”

Huynh Van Son, Vice Chairman of Long An People’s Committee

Prodezi EIP implements an advanced energy management system to flexibly utilise renewable energy and grid electricity, improving energy efficiency. Its wastewater treatment system is designed to reuse at least 25 per cent of water resources and repurpose sludge waste, in compliance with eco-IP standards. Prodezi also aims to obtain international green building certifications for its facilities and strictly adheres to ESG standards.

The park will allocate at least 25 per cent of its area to green spaces, water surfaces, transportation, technical zones, and shared social infrastructure. The park will also establish projected emission standards for specific industries, implement industrial symbiosis within the park, and develop monitoring mechanisms for inputs, outputs, and social responsibility initiatives for surrounding communities.

Truong Khac Nguyen Minh, deputy general director of Prodezi Long An JSC, said, “Prodezi Eco-Industrial Park is committed to creating an efficient manufacturing space that fosters a sustainable ecosystem where businesses, people, and nature can thrive in harmony. We believe that the establishment and development of the park, together with the adjacent LA Home eco-urban area, will create a sustainable industrial-urban-service ecosystem, generating economic value and enhancing the quality of life for the local community.”

In addition to its sustainable development goals, Prodezi EIP is committed to corporate social responsibility, working alongside local communities through various practical initiatives. Prodezi implemented several programmes last year, such as supporting education, environmental protection, and local community development, including scholarship grants and public infrastructure projects.

Prodezi broke ground on a 400-unit social housing apartment development in the LA Home eco-urban area on March 5, ensuring stable housing for workers and addressing labour force stability for manufacturing enterprises.