The US’s decision to impose high tariffs on a range of Vietnamese exports, including wood products and furniture, is pushing the country’s timber industry to swiftly recalibrate its strategies to sustain growth.

The Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) reported that on September 25, US President Donald Trump announced tariffs of up to 50% on kitchen cabinets, bathroom cabinets, and selected furniture products, effective October 1. Given the US remains Vietnam’s largest export market for wood and furniture, this measure presents a significant challenge. In response, Vietnamese enterprises are urgently seeking new directions to safeguard growth.

Canada has emerged as a promising alternative market, with Vietnam ranking among its top three wood suppliers. According to the Vietnam Timber and Forest Products Association, Canadian buyers show strong demand for Vietnamese products, particularly bedroom furniture, which accounts for over 35% of market share. Analysts attribute this success to both quality and the industry’s responsiveness to consumer preferences for sustainable, minimalist, and eco-friendly designs.

The Ministry of Industry and Trade (MoIT) has advised businesses to prioritise Forest Stewardship Council (FSC)-certified products to meet Canadian sustainability requirements, alongside strict standards on safety, durability, and fire resistance. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) also offers tariff advantages, enhancing the competitiveness of Vietnamese products.

Canada itself is a major timber producer, with annual output of around 600 million cubic metres, yet its furniture industry meets only half of domestic demand. This reliance on imports, particularly competitively priced items, positions Vietnam as a key supplier to bridge the gap.

HAWA Chairman Phung Quoc Man noted that, unlike the US, other markets have yet to impose tariffs on Vietnamese wood. He urged enterprises to make full use of free trade agreements, enhance design capacity, and expand online sales channels. In the first eight months of 2025, Vietnam’s wood and wood product exports rose 6.5% year on year to 11.1 billion USD. However, challenges remain in the final quarter, making market diversification and stronger focus on domestic demand critical for long-term stability.

Nguyen Cam Trang, Deputy Director of the MoIT’s Import-Export Department, said the ministry continues technical talks with the US on transshipment issues, where clear definitions and guidelines are still lacking. In the meantime, Vietnamese businesses are encouraged to leverage free trade agreements and broaden export outlets to maintain growth momentum.

Source: vietnamnet.vn