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Unsplash Domestic market seen as key growth pillar for wood
industry
The wood industry should treat the domestic market as a
strategic growth pillar rather than a fall back when exports
weaken, industry executives and policymakers said during a
conference on developing the local wood product markets.

Valued at about US$5 billion a year and projected to exceed
US$7 billion by 2030, the domestic wood and furniture market
is increasingly seen as a new source of growth for one of
Vietnam's largest export industries, they said.
Experts argued that stronger local demand could reduce
the sector's dependence on overseas markets and improve
Bui Thi Nha Trang, Sustainability Team Manager at Control its resilience to global economic shocks.
Union of Vietnam, said global forest-product trade was shifting The wood industry has built its reputation on exports, with
from a “trust-based” to an “evidence-based” model. overseas shipments and Vietnamese wood products are sold

Businesses must now demonstrate not only the legality in more than 160 countries and territories.
of their materials but also traceability, sustainable forest Industry representatives said that success has exposed a
management and carbon-emission control throughout the gap at home, where the domestic market has yet to receive the
supply chain. same strategic attention despite its size and growth potential.
Participants said sustainable development of the wood Ngo Sy Hoai, Secretary-General of the Vietnam Timber
industry required a stronger focus on material quality, and Forest Product Association (VIFOREST), said domestic
technological innovation and transparent and traceable supply spending on wood and furniture averages about US$50 per

chains, rather than simply expanding planted forest areas. person a year, putting the market's current value at around
The development of large-timber forests, high-yield varieties US$5 billion.
and smart forestry was identified as key to raising the value Some studies estimate the market is already approaching
and efficiency of forest resources. US$7 billion and could exceed US$7.3 billion by 2030 if annual
They noted that the US$25 billion export target by 2030 growth of seven to nine percent is maintained, he said.
will require a comprehensive restructuring of the industry The potential could be even larger as those estimates do
towards greener, more sustainable and lower-carbon growth not fully account for demand from green public procurement,
rather than simply increasing output. social housing projects and the biomass energy sector, all of
To remove bottlenecks, Doan Van Tinh, Chairman of the which are expected to expand in the coming years.

Board of Directors of MDF Mekong, called for policy adjustments Phung Quoc Man, Vice Chairman of VIFOREST and
to encourage deep processing instead of raw-material exports. Chairman of the Handicraft and Wood Industry Association
He also urged measures to address high material costs, of Ho Chi Minh City (HAWA) said manufacturers have
improve forestry-related administrative procedures and increase already demonstrated their capabilities in production, design,
investment in research and development of high-yield and management and sustainability by competing successfully in
high-quality forest varieties suited to local conditions and international markets.
processing. The challenge now is translating those strengths into