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Joe Mabel VIETNAM
Wood and Wood Product (W&WP) trade highlights
As of early May 2026, Vietnam's wood and wood product
(W&WP) industry has been navigating a complex landscape
marked by significant legal and trade-defence challenges in
key markets.

Despite these hurdles, the industry has remained resilient,
supported by a strategic shift toward market diversification.
While the U.S. continues to be Vietnam’s largest export
market, exporters are actively expanding their presence in
the current fiscal year to 6.5 percent, against 6.2 percent Japan, China, South Korea, EU and the Middle East, with
estimated earlier citing the strong momentum from last year approximately 45 new markets being targeted as a buffer
as well as the fall in US tariffs on exports. against potential US tariffs.
Inflation in India is expected to accelerate to 4.7 percent Japan has shown particularly strong growth, becoming
this year as the impact of low food inflation wears off. Last Vietnam’s second-largest export destination, with exports

week, the World Bank raised India’s growth outlook to 6.6 increasing by more than 23 percent over the past year.
percent compared with 6.3 percent estimated in October citing China remains the third-largest market, driven by rising
robust domestic demand and strong export performance. demand for Vietnamese wood chips, with imports increasing
At the same time Standard and Poors (S&P) cautioned by around 3.5 percent annually in recent reporting periods.
that India is not immune to the effects of the war, which Exports to Spain rose sharply by 63 percent due to strong
may be felt on household and businesses. It also said India market demand while Canada has emerged as an important
is equipped to handle some strain. market, especially for bedroom furniture products.

Robust corporate balance sheets provide a cushion Vietnam’s hardwood and decorative plywood exports to
against higher energy prices. Banks have strong capital and the US are currently facing severe pressure, following the
profitability; India’s robust external position gives it buffers to announcement of preliminary anti-dumping and countervailing
absorb some shocks from a higher import bill. duties exceeding 190 percent in March 2026. Final determinations
S&P says they do not expect any immediate impact on are scheduled for May 2026.
ratings on the sovereign, corporates and banks. Even so, According to statistics from the Vietnam Customs Office,
govt’s efforts at fiscal consolidation could also face temporary W&WP exports in April 2026 reached US$1.43 billion, up three
setbacks, the ratings agency said. percent compared to March 2026, but down one percent
S&P projects a further weakening of rupee, in case oil compared to April 2025. Of this total, WP exports accounted

prices remained high, which will also adversely impact the for US$941.7 million, increasing by five percent month-on-
current account balance. month but decreasing by four percent year-on-year.
While estimating GDP growth of 7.1 percent with oil price Overall, during the first four months of 2026, W&WP
at US$85 a barrel, it projected the expansion to moderate exports totalled US$5.4 billion, up 0.4 percent compared to
to 6.3 percent in case crude hovered around US$130 levels. the same period in 2025. WP exports contributed US$3.5
In such a situation, it also warned of an adverse impact on billion, representing a decline of five percent year-on-year.
corporate profitability and asset quality of banks. Vietnam’s wooden furniture exports in April 2026 were