Binh Dinh's wood and wooden products export turnover in 2024 accounts for 62% of the total export value of the province - photo: moit.vn)

Binh Dinh Province's wood exports reached US$1.1 billion in 2024, up 15% from 2023, and are expected to hit US$2 billion by 2030. This information was highlighted at a conference on opportunities and challenges in the wood industry, jointly organized on March 7 by the Ministry of Agriculture & Environment, Binh Dinh’s People's Committee, and the Vietnam Timber & Forest Products Association (VIFORES).

According to local authorities, Binh Dinh currently houses over 320 wood processing enterprises, primarily concentrated in the Phu Tai and Long Mỹ industrial zones, with a total investment of approximately VND 13 trillion (US$515 million).

The province's main export products include indoor and outdoor furniture, wood chips, and pellets, catering to major markets such as the United States, the European Union, the United Kingdom, Australia, and Japan. Over 12,175 hectares of planted forests in Binh Dinh have obtained FSC certification, ensuring compliance with international material standards.

In 2024, Binh Dinh’s wood and wooden product exports accounted for 62% of the province’s total export revenue and contributed to 7% of the country’s total wood exports.

Wood industry maintains strong growth

According to the Ministry of Industry and Trade, Vietnam’s wood industry is set to maintain stable growth in 2024, with total exports of wood and forest products projected to exceed US$17.1 billion—up 19% from the previous year and surpassing the initial target by 12.8%. Meanwhile, wood imports reached US$2.74 billion, a 26.2% increase, bringing the sector’s trade surplus to over US$14.4 billion, an increase of nearly 17.2%.

Binh Dinh remains one of Vietnam’s leading provinces in wood processing and exports, particularly in outdoor furniture manufacturing, thanks to its abundant planted forests, strategic seaport advantages, and the rapid development of industrial zones.

However, the industry is facing mounting challenges. Le Van Luong, CEO of Đại Thành Wood Technology JSC, pointed out that businesses are struggling with capital shortages and rising input costs, while demand in key markets like the U.S. and EU is showing signs of stagnation.

Meanwhile, companies in Binh Duong, Dong Nai, and Ho Chi Minh City are also grappling with unstable raw material supplies, high logistics costs, and technical trade barriers in European and American markets.

Outlook for 2025 and beyond

Looking ahead to 2025, Binh Dinh’s wood sector is expected to face continued pressure from trade barriers and stringent traceability requirements in the EU and U.S. Binh Dinh’s Chairman Pham Anh Tuan urged VIFORES to develop a strategic roadmap tailored to market demands, preventing oversupply crises. He also emphasized the need to tap into the domestic market, which boasts a population of over 100 million, alongside export expansion.

Enterprises must conduct thorough risk assessments, particularly regarding policy shifts in importing countries, he noted. On the production side, Tuan stressed the importance of establishing a specialized and integrated supply chain. He also advocated for expanding large timber plantations to secure a stable raw material supply and capitalize on opportunities in the carbon credit market.

Additionally, the ongoing shift of global wood production to Vietnam presents significant opportunities. However, Chairman Tuan emphasized that product quality must be elevated to enhance competitiveness in the international arena.

Binh Dinh’s authorities have pledged full support for the wood industry, encouraging green transformation and the adoption of modern technology. The province is also facilitating the development of a closed-loop supply chain to maximize local resources.

“The local government is evolving positively and is fully committed to supporting businesses. This is a golden opportunity for companies to seize and expand. If there are reasonable proposals, we will address them immediately,” Tuan affirmed.

Despite challenges such as rising input costs, technical trade barriers, and stricter traceability requirements, with the right strategy and close coordination among stakeholders, Binh Dinh’s wood industry is well-positioned to achieve its $2 billion target by 2030, further solidifying Vietnam’s status as a global hub for wood processing and manufacturing.