Vietnam wood industry targets domestic market growth

Vietnam’s wood industry is shifting its focus toward the domestic market to diversify sales channels and mitigate the impact of global market volatility. The Vietnam Timber and Forest Products Association (VIFOREST) suggests that the domestic market could serve as a vital complement to exports, helping businesses maintain production, employment, and cash flow.

Projections indicate the domestic wood market could grow from approximately 5 billion USD in 2025 to between 7 and 7.7 billion USD by 2030, representing an annual growth rate of 7-9%. This potential is supported by Vietnam’s population of over 100 million people. VIFOREST Secretary General Ngo Sy Hoai noted that if the country achieves double-digit GDP growth, annual per capita spending on wood products and furniture could increase by 7-9%, outpacing the estimated global demand growth rate of 6%.

Some companies have already pivoted their strategies. Nguyen Minh Cuong, General Director of Minh Long Wood Company, stated that after 13 years of studying international markets including Europe, China, and the US, the company now focuses 95% of its business on the domestic market. The company aims to develop furniture that reflects Vietnamese culture and lifestyles to build competitive advantages.