Vietnam’s wooden furniture exports are experiencing strong growth but also face significant challenges from new tariff policies introduced by President Donald Trump. As the primary export market, any changes in U.S. trade policies could directly impact Vietnam’s wood industry. However, experts believe that despite these risks, businesses still have ample opportunities to adapt and thrive—especially through flexible strategies and tapping into the potential of the domestic market.
Vietnam’s Wooden Furniture Exports Continue Strong Growth
According to the Ministry of Agriculture and Rural Development, Vietnam’s wood and wood product exports reached $2.5 billion in the first two months of 2025, marking a 12.4% increase compared to the same period in 2024. The industry aims for a record-high $18 billion in exports this year, building on the $16.25 billion achieved in 2024.
The U.S. remains the largest export market, accounting for 55% of total export revenue, with most products benefiting from near-zero tariffs. However, the trade imbalance – $9.4 billion in Vietnamese wooden furniture exports versus only $380 million in imports from the U.S.—poses challenges amid evolving trade policies.
Challenges from U.S. Tariff Policies on Vietnam’s Wood Industry
On February 13, 2025, former President Donald Trump announced a “reciprocal tariff” plan, which could subject Vietnamese goods to the same tariffs that Vietnam imposes on U.S. products.
By March 1, 2025, the U.S. Department of Commerce launched a national security investigation into lumber imports, with the potential to impose a 25% tariff on raw materials and wood-based products.
According to Đỗ Ngọc Hưng, Trade Counselor and Head of Vietnam’s Trade Office in the U.S., if these tariffs are enforced, Vietnam’s wooden furniture exports could lose their competitive edge. “This may lead U.S. importers to shift to alternative suppliers,” he warned.
Strategies to Counter Potential U.S. Tariff Increases
Adjusting Import Policies and Ensuring Legal Sourcing
According to Nguyễn Tuấn Hưng, Head of the Wood Processing and Trade Department at the Forestry Administration, Vietnam should consider adjusting import tariffs on U.S. lumber to balance bilateral trade and mitigate potential retaliatory measures from the U.S.
Additionally, Ngô Sỹ Hoài, Vice Chairman and General Secretary of the Vietnam Timber and Forest Products Association (Viforest), emphasized the importance of increasing raw wood imports from the U.S. “This ensures a legal and transparent supply chain, strengthens compliance with origin standards, and facilitates exports to key markets like the U.S. and Japan,” Hoài noted.
Expanding the Domestic Market – A Sustainable Growth Strategy
According to Võ Quang Hà, Chairman of Tavico, Vietnam’s furniture market is valued at $5 billion annually, yet remains underdeveloped. He suggests that businesses should shift focus to:
- Large-scale projects: Supplying furniture for construction and real estate developments.
- Retail distribution: Expanding traditional retail networks and e-commerce channels.
- Public sector investment: Capitalizing on government-funded projects for housing, schools, and public infrastructure.
By leveraging these opportunities, Vietnam’s furniture industry can reduce dependency on exports and build a more resilient domestic market.
Opportunities and Future Prospects for Vietnam’s Wood Industry
Despite the challenges, Vietnam’s wooden furniture sector remains optimistic about growth opportunities.
Ngô Sỹ Hoài, Vice Chairman of Viforest, emphasized: “The U.S. cannot easily replace Vietnam as a key supplier. Over the past 20 years, we have built a strong reputation for quality, design, and compliance with regulations.”
Similarly, Ngô Chơn Trí, COO of Yes4All, stated that the company aims to reach $94 million in U.S. sales this year, marking a 75% increase from the previous year. “If tariffs are imposed, costs may rise, but demand will persist. We are working closely with manufacturers to optimize pricing and quality,” Trí explained.
Additionally, with China reducing U.S. wood imports and Canadian lumber facing a 25% tariff in the U.S., Võ Quang Hà, Chairman of Tavico, sees an opportunity for Vietnam to source cheaper raw materials, enhancing production capacity and export competitiveness.
Conclusion
The U.S. tariff policy may pose challenges to Vietnam’s wooden furniture exports, but businesses can proactively adapt. By adjusting tax policies, leveraging opportunities to import legal wood, and expanding the domestic market, the industry can maintain sustainable growth.
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Source: VNExpress
