ANNUAL REPORT 2024
TOGETHER IN BELIEF, LEADING IN INNOVATION
080
081
The wooden furniture industry in 2024
Over the past year, while the macroeconomic situation showed overall improvement, demand for furniture products in general, and industrial wood products in particular, did not fully recovered.
The U.S. remained the most critical market for Vietnam's wood industry, accounting for 55.6% of the total export turnover of wood and wooden products in 2024.
Consumers remained cautious in spending on furniture, as income levels were impacted by the prolonged economic downturn in recent years.
According to expers, the recovery of the U.S. housing market is expected to play a key role in sustaining the export growth momentum of the industry in 2025. Additionally, the cooling of transportation costs and increasing demand are projected to improve order volumes for exporters of wood and wooden products.
Additionally, in 2024, Vietnam's real estate market gradually showed positive signs of recovery, supported by significant advancements in improving the legal framework, with increasingly transparent and clear information for all participants. However, 2024 remained a transitional year, serving as a foundation to drive the real estate market's growth in the upcoming period. Real estate corporations still need time to restore their financial health and restart projects after a period of stagnation. While the domestic market remained sluggish, the export market was considered a stabilizing factor for the wooden furniture industry in 2024. According to estimates from the General Department of Customs for 2024, the export value of wood and wooden products reached approximately USD 16.3 billion, reflecting a 20.3% increase compared to 2023, indicating a partial recovery of the industry after a challenging year. Among these, the export turnover of wooden products was estimated at USD 11.2 billion, marking a 21.9% increase and highlighting positive signals driven by market diversification strategies and improved product quality.
Export value of wood and wooden products over the years
Source: General Department of Customs
20.3%
19.7%
16.2%
16.30
16.01
14.80
13.40
12.37
Nevertheless, the wood industry faces significant challenges, including increasingly stringent demands from major partners such as the U.S. and EU regarding design, quality, and compliance with regulations on sustainable forest management and carbon emission reductions. Exporting businesses are required to adhere to new standards, such as anti-deforestation regulations, accountability measures, and the Carbon Border Adjustment Mechanism (CBAM) introduced by the European Commission. Moreover, U.S. tariff policies are expected to present potential challenges for export activities in general, as well as for the export of wood and wooden products specifically to this market. This scenario underscores the need for businesses to diversify their markets while intensifying investment in technology and sustainable production processes to meet new standards, optimize costs, and enhance competitiveness on the global stage.
8.1%
-16.2%
2020
2021
2022
2023
2024
Export value (USDbn)
Growth rate (%)
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