HCM CITY — While export markets have helped Việt Nam’s wood industry build its production capacity and establish a global position, a stronger domestic market could provide an important foundation for more stable and sustainable long-term growth, industry representatives have said.

Speaking at a seminar on building a legal, quality-driven, and sustainable domestic wood market, Nguyễn Hoài Bảo, vice chairman and general secretary of the Handicraft and Wood Industry Association of HCM City (HAWA), said that in 2025, Việt Nam’s exports of wood and wood products were worth US$17.2 billion, with exports to the US accounting for nearly $9.5 billion.

The figures demonstrate Vietnamese wood and furniture enterprises possess robust manufacturing capabilities, effective corporate governance, and the ability to meet strict requirements in high-standard international markets, he said.

But having developed the ability to take its products to global markets, the industry should also focus on building a sufficiently strong market at home, he said.

“With a population of more than 100 million, rapid urbanisation, and growing demand for housing, construction, and living spaces, the domestic market is a fertile space that the wood industry needs to take seriously and approach with a long-term strategy.

“However, sustainable development requires not only good products but also clear standards on timber origin, legality, quality, and product safety.”

Echoing this view, Ngô Sỹ Hoài, secretary general of the Việt Nam Timber and Forest Products Association (VIFOREST), said the country’s population of more than 100 million, and growing by around 1 per cent annually, offers considerable potential for the domestic wood market.

For years, however, the domestic market had largely been regarded as a supplementary sales channel or a “lifeline” when exports faced difficulties, while most businesses continued to focus their resources on overseas markets.

Hoài said: “This approach needs to change. The domestic market is large enough to become a genuine growth driver, rather than merely a supplementary sales channel.”

He said if the economy maintains steady growth of more than 10 per cent annually, domestic demand for wood products could expand by 7–9 per cent annually, surpassing the global average growth rate of around 6 per cent.

Then it could grow from its current $5 billion valuation to nearly $8 billion by 2030.

This domestic demand spans far beyond residential furniture, encompassing housing, public works, hospitality services, e-commerce packaging, paper, logistics, and biomass energy.

Hoài particularly highlighted the transformative potential of public procurement.

If government projects and public facilities strictly mandate the use of legal, traceable timber sourced from sustainably managed forests, the public sector could establish benchmark standards for the broader consumer market.

Market lacks common standards

Its potential notwithstanding, the domestic wood and furniture market faces several constraints, including fragmented supply chains, and a lack of common standards and transparent product information, according to Hoài and businesses at the seminar.

Market data is another weakness. While import and export statistics are relatively comprehensive, information on the size, structure, and consumption trends of the domestic wood market remains limited.

This makes it difficult for businesses to forecast demand or develop appropriate market strategies.

Businesses attending the seminar also pointed to the lack of standards and technical regulations specifically applicable to the domestic wood market, calling for clearer Government frameworks to help protect consumers and establish a more transparent market.

Competition is also intensifying as a large and diverse range of Chinese products reaches Vietnamese consumers through online sales and domestic distribution channels. Vietnamese businesses therefore need to take a more proactive approach to developing the domestic market, said Nguyễn Vĩnh Nam, vice president of operations of USofa.

He said this requires stronger collaboration among relevant associations and organisations to create opportunities for businesses to network, share best practices and build partnerships. The Government should also play a leading role by developing common standards and establishing a transparent framework for product quality and origin. This would help businesses improve quality while giving consumers more information when making purchasing decisions.

Hoài said a transparent market ecosystem based on clear standards is needed.

Legal timber, traceability, and sustainable forest management should become minimum requirements not only for export products but also for the domestic market.

Businesses should also develop dedicated models for the domestic market rather than treat it as an outlet for surplus products.

Nguyễn Minh Cương, general director of Minh Long Wood Joint Stock Company and chairman of the HAWA Northern Club, said firms should make greater use of Việt Nam’s cultural identity and heritage when developing products for domestic consumers, creating designs that reflect local tastes and values.

Võ Quang Hà, chairman of the HCM City Structure Architecture Wood Association (SAWA) and chairman of Tavico Group, said: “We have the capacity to produce high-quality products for demanding international markets. The same standards should also be applied to products serving Vietnamese consumers.”

The seminar was organised by HAWA as part of the Vietnam Interior and Build Expo being held at the Saigon Exhibition and Convention Centre in HCM City. – VNS