Wood products businesses urged to diversify export markets
Wood products businesses urged to diversify export markets
The outlook for Việt Nam’s wooden product exports in 2025 remains promising, but businesses need to adopt flexible strategies to cope with trade policy changes in key markets and diversify their export markets and product offerings to mitigate risks and sustain growth, according to industry insiders.
Visitors look for interior and exterior furniture products at VIFA EXPO. — Photo courtesy of the organisers |
Speaking at a meeting held to introduce the 16th edition of Vietnam International Furniture & Home Accessories Fair (VIFA EXPO 2025) in HCM City on 19 February, Trần Quốc Mạnh, deputy chairman of the Việt Nam Handicraft Exporters Association, said there had been positive signs in wood and wooden product exports since the fourth quarter of last year, with many firms having export orders secured until the end of the first quarter of 2025.
However, he also warned of likely challenges due to rapid changes in trade policies in key markets and geopolitical tensions, requiring businesses to adopt flexible strategies in response.
“Another issue is that exports to the US account for over 50 per cent of the sector’s total exports. While this is an advantage, it also presents risks. If businesses do not expand their exports to other markets, such as China or the Middle East, they could face risks associated with over-reliance on a single market.”
He urged firms to diversify their products and explore markets with which Việt Nam has free trade agreements, and also highlighted the need for them to enhance digital transformation in their production and sales through e-commerce channels, which could significantly reduce costs and, at times, create a breakthrough for businesses.
Huỳnh Thị Phương Vi, deputy general director of the Hiệp Long Fine Furniture Company, said her company has steady export orders from the US market, which accounts for 35 per cent of its total exports.
Many global buyers are seeking additional suppliers from Việt Nam, but large customers are hesitant to place big orders due to concerns over potential changes in US tariff policies under Donald Trump’s presidency, she said.
“Each company cannot afford to simply wait and see how Trump's tax policies unfold. Instead, they need to proactively diversify their markets, exploring opportunities in locations such as Dubai.”
Her company has participated in the VIFA EXPO for over 13 years and often met new customers, and at last year’s exhibition secured additional customers from Europe and the US.
In recent years, it has supplied products to restaurants and hotels in Dubai, thanks to connections made at the event.
“Trade fairs remain the most effective platform for manufacturers to showcase products and engage with potential customers.”
To penetrate new markets, businesses need to thoroughly research market trends and understand consumer habits and preferences, she added.
Võ Tân Thành, deputy chairman of the Việt Nam Chamber of Commerce and Industry (VCCI), said Việt Nam's wood industry achieved great success last year, with exports of wood and wooden products reaching US$16.25 billion, up over 20 per cent from 2023. Of this, exports of wooden products alone are estimated at $11.2 billion, a year-on-year increase of nearly 22 per cent.
He attributed the growth to “the proactive efforts of enterprises in seeking new markets, actively participating in exhibitions and fairs, and capitalising on recovery signals from major partners like the US and Europe.”
VIFA EXPO 2025
Visitors look for interior and exterior furniture products at VIFA EXPO. — Photo courtesy of the organisers |
To help businesses find customers and diversify markets, VCCI and the Alliance Handicraft Wooden Fine Art Corporation (Liên Minh Company) will organise the annual VIFA EXPO from March 5 to 8 at the Saigon Exhibition and Convention Centre, Thành said.
The expo has attracted more than 650 exhibitors with over 2,500 booths, making the 16th edition the largest to date.
Exhibitors will come from 19 countries and territories and Việt Nam’s 17 provinces and cities.
Furniture will account for 75 per cent of the exhibition space, handicrafts and home décor for 15 per cent, and machinery and components and services for the rest.
The event will provide businesses with extensive opportunities to showcase their products and connect with global buyers.
Đặng Quốc Hùng, general director of the Liên Minh Company, said this year the organisers are particularly focused on attracting buyers from non-traditional markets such as the Middle East, India, China, South America, and Africa to help businesses tap into emerging markets and diversify their customer base.
The organisers are collaborating with cross-border e-commerce platforms such as Amazon and Wayfair to help Vietnamese businesses engage in transactions with end consumers worldwide.
The expo would also include conferences and a factory tour programme, allowing buyers to gain a deeper understanding of the manufacturing capabilities and production technologies of Vietnamese businesses, he added.
