Information was given at the Seminar "Vietnam's wood industry faces changes in export markets" co-organized by Vietnam Timber and Forest Products Association (VIFOREST), Binh Duong Wood Processing Association (BIFA), Ho Chi Minh City Handicraft and Wood Processing Association (HAWA), Dong Nai Wood and Handicraft Association (DOWA), Binh Dinh Wood and Forest Products Association (FPA Binh Dinh) and Forest Trends on the afternoon of December 6, in Hanoi.
The United States accounts for 56% of total wood and wood product export.
In his opening speech at the Seminar, Mr. Do Xuan Lap - Chairman of Vietnam Timber and Forest Products Association - said that the United States is the most important export market for Vietnam's wood industry and may have very big changes in the near future.
These changes may be caused by new tax policy applied by the US Government to imported goods into this market in the future. China, Mexico and Vietnam are three countries with the largest trade surplus with the US, respectively. The US Government is expected to impose a tax rate of 60% on all imported goods from China and 15-20% on imported goods from other countries.
It is forecasted that in 2024, Vietnam's wood and wood product exports will reach over 16.2 billion USD, of which exports to the US account for 56% of total export turnover, reaching nearly 9 billion USD and imports from this market will reach over 230 million USD. Thus, in the US market alone, Vietnamese wood industry has a trade surplus of about 8.8 billion USD in wood and product import and export activities. This shows that the US is the key and most important market for the Vietnamese wood industry.
With upcoming policy change of the US market, Vietnam in general and wood industry in particular can benefit from the high tariffs that the US applies to goods from China.
However, if import and investment from China to Vietnam are not well controlled, Vietnam may suffer negative impacts. In addition, the US may also apply new tariffs on goods from Vietnam, including wood products. This will cause difficulties in exports and impact production.
In context of strong policy fluctuations, in the coming time, what wood industry needs to prepare and what to do is a question being asked by all relevant parties, from the State agencies to associations and Vietnamese wood business community.
Recommendations for businesses and recommendations for authorities
At the seminar, representatives of Vietnamese trade agency in the United States, speakers/experts shared and updated information such as: Changes in US trade policy and impacts on Vietnamese industries in the future; Vietnam - US wood trade in the trade relationship between the United States and China; foreign and Chinese investment in Vietnam's wood industry in recent years.
Analyzing and forecasting difficulties as well as advantages that Vietnamese wood industry will enjoy and also giving very important recommendations to help Vietnamese wood industry enterprises what to do to reduce trade balance gap when wood industry's trade surplus in this market is up to 8.8 billion USD, Dr. Huynh The Du - lecturer of Public Policy, Training Director of Fulbright Economics Teaching Program in Vietnam - said that Vietnamese enterprises need to increase direct investment in the US market. Along with that, increasing trade/connection and cooperation with US businesses, this is also an opportunity for wood industry businesses to expand their direct distribution market in the US market. Besides, Vietnam needs to create more favorable conditions for US investors in Vietnamese market.
In sharing article of Dr. To Xuan Phuc - Policy Analyst of Forest Trends Organization - also provided evidence to have a clearer analysis of wood industry picture, in which, three main observations were made: Shifting supply chains; shifting Chinese investment capital flows to other countries and shifting immigration.
Concluding discussion, Mr. Do Xuan Lap said that based on the delegates' sharing, in current context of wood industry and upcoming tax scenario for markets, including Vietnam, Vietnamese wood industry recommends that the State agencies continue to accompany wood industry in the coming time in providing information on policy warnings, trade barriers and trade defense measures. At the same time, provide information and support Vietnamese wood industry enterprises when they seek investment opportunities in the US market; organize seminars connecting businesses between two countries to encourage investment in both forms. In addition, there is also a need to promote/introduce sustainable and legal Vietnamese wood industry to partners.
The associations also recommended that the State agencies need to have open policies on investment but still be able to manage foreign investment projects in the wood industry.
In addition to needing support from state agencies, associations as well as wood industry enterprises have also taken initiative in some activities to minimize the impact. Specifically: Ensuring supply chain meets US requirements; preparing for possible scenarios in 2025, if the US imposes taxes and applies trade defense measures; promoting and introducing a strong image of Vietnamese wood through domestic and foreign fairs and exhibitions; seeking opportunities to open a wood product distribution system in the US; strengthening cooperation with partners, agencies, associations and trading units in the US; increasing information sharing with relevant parties.
Vietnam Timber and Forest Products Association will be the focal point to receive information channels to share with wood industry enterprises.

Source: Vitic/ congthuong.vn