Vietnam’s wood industry adapts to sustainable development requirements

Meeting sustainable development requirements is no longer optional but a mandatory condition for Vietnamese wooden furniture and wood products to retain their position in global supply chains.

Vo Quang Ha, Chairman of the Ho Chi Minh City Structure Architecture Wood Association (SAWA). (Photo: VNA)
Vo Quang Ha, Chairman of the Ho Chi Minh City Structure Architecture Wood Association (SAWA). (Photo: VNA)

Ho Chi Minh City (VNA) – Meeting sustainable development requirements is no longer optional but a mandatory condition for Vietnamese wooden furniture and wood products to retain their position in global supply chains, experts said at a seminar held in Ho Chi Minh City on January 29.

Vo Quang Ha, Chairman of the Ho Chi Minh City Structure Architecture Wood Association (SAWA), noted that, of more than 17 billion USD in Vietnam’s wood and wood product exports, raw materials and sawn timber account for only about 4–5 billion USD, while the rest comes from furniture and interior products. This highlights the significant potential for value-added growth in the sector.

However, Ha stressed that export expansion must be accompanied by responsible forest management and a long-term vision, supported by clear policy orientation and appropriate mechanisms to engage all stakeholders.

Developing large-timber plantations was identified as a key solution to increasing value added. Large timber generates higher economic returns for forest growers, provides greater economic value and enables longer carbon sequestration, contributing to climate change mitigation. Instead of early harvesting for low-value products such as wood chips, forest owners should be encouraged to extend rotation periods to support deep processing. Residual wood can be utilised for engineered wood products, while plantation timber in Vietnam has the potential to be processed into construction materials. Internationally, engineered wood has already been applied in high-rise buildings and large-scale, environmentally friendly projects.

To Xuan Phuc, Executive Director of Forest Trends’ Forest Products Trade Policy Programme, said global wood markets are rapidly shifting from voluntary to mandatory requirements on legality and sustainability. While voluntary certification schemes such as Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) were once the main tools to ensure sustainability, major consumer markets have since introduced binding regulations, including the EU’s Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreements (VPA), the US Lacey Act and Australia’s Illegal Logging Prohibition Act.

Since the 2010s, market demands have continued to rise, with legality seen as a necessary but insufficient condition. Consumers and importers increasingly require deforestation-free supply chains, respect for community rights, labour standards, and contributions to emission reduction and climate change response. Many large corporations have committed to sourcing only sustainable wood products with transparent supply chains.

Vietnam’s key export markets apply different levels of requirements, but the overall trend is tightening. The US, accounting for over half of Vietnam’s wooden furniture exports, focuses strongly on legal origin and high-risk timber imports. Although the EU represents a smaller market share, it leads regulatory innovation, notably with the EU Deforestation Regulation (EUDR), which requires traceability and proof of deforestation-free production. Compliance is considered feasible as most exports to the EU already hold FSC or PEFC certification.

Meanwhile, China remains a relatively stable market with lower requirements, mainly importing wood chips. Japan and the Republic of Korea continue to demand pellets, chips and plywood, though with stricter criteria on legality and climate impact. Overall, trade regulations are increasingly shaping forest governance and supply chains in producing countries like Vietnam.

Phuc noted that with over 1.1 million forest-growing households, fragmented landholdings and complex supply chains, Vietnam’s wood industry needs a more comprehensive approach. Key solutions include expanding certified forest areas, enhancing supply chain transparency, supporting smallholders’ livelihoods and reducing reliance on high-risk imported timber.

From a policy perspective, the State’s leading role was underscored through public procurement policies prioritising legal and sustainable wood products, helping reduce trade risks, stimulate the domestic market and improve forest growers’ livelihoods. The private sector is also expected to proactively implement sustainability commitments in response to evolving global consumption trends.

Addressing wood use in construction, Lu Thi Hong, Deputy Director of the Institute for Building Materials under the Ministry of Construction, said wood is increasingly recognised as a renewable, low-carbon material supporting green transition goals.

She recommended restructuring technical standards to integrate quality, origin, sustainability and carbon emissions, while incorporating life cycle assessment and environmental product declarations to align with green building standards and national emission reduction strategies./.

VNA

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