Rise in Consumption of Wood & Wood Products Expected to Drive Vietnam Wood Industry: Ken Research

Vietnam wood industry is a private economic sector concerned with logging, timber trade, forestry, and the production of forest products. It is also known as lumber industry. The industry comprises companies that operate by manufacturing, creating, and producing wood products for instance plywood, wood-plastic composites and plastic lumber. In Vietnam, the demand of wood is determined by the level of activity in end-use industries, for instance building construction, and the crash of the housing market. Due to rise in demand from the automotive industry coupled with growth in recovery of housing sector are fueling growth in the industry.

In Q4/2019, Vietnam wood processing industry has become a major export commodity or head wood exporting country in Southeast Asia and ranks seventh in the world in the export of furniture. The supply of plantation timber have an important role in the creation of products for export. Additionally, wood chips are also important export items of country.

According to study, “Vietnam Wood Industry report Comprehensive Report Q4/2019” the key companies operating in the Vietnam wood industry are Wanek furniture Co,. Ltd., Viet Nam Woodwoth Wooden Co, Ltd., An Cuong wood JSC, Viet Nam Nitori production Co, MDF VRG DONGWHA Wood JSC, Shing Mark Vina Co Ltd., ROCHDALE SPEARS Co. Ltd., Timber Industries Co,. Ltd., Viet Nam POH HUAT JSC, Viet Nam San Lim Furniture Co. Ltd. Key companies in the wood industry need to continue to focus on improving efficiency and rising investments in advanced technologies & equipment.

Based on type, Vietnam wood industry is segmented into solid wood products and composite wood products. Solid wood products are further sub-segmented into veneer & plywood, lumber, furniture, mine timbers, poles, piling, and posts. Furniture is used for dining rooms, bedrooms, living rooms, upholstered seating, and other interior applications. Furniture segment dominates the market as it is oriented particularly towards Europe and North America whereas most fuel-wood exports are intended mainly for South Korea and Japan. Composite wood products are further sub-segmented into laminated timbers, hard-board, insulation board, and particle board. Based on product & services, market is segmented into export wooden pallet, wooden pallet, wooden box, wooden strips, wood cutter machine, square wooden pallet, warehouse wooden pallets, pinewood wooden pallet, industrial rectangular wooden pallet, shipping pallet, two way wooden pallet and heavy industrial wooden box. In addition, based on end-user, market is segmented into commercial and domestic or manufactured home.

The Vietnam wood industry is driven by rise in number of domestic & foreign-funded enterprises, followed by increase in economy, growth in global recognition of the quality of high-end Vietnamese wood products, rapid increase in wood processing for furniture, growth in continuation of sustainable forest management & trade in forest products and rise in improvement in wood products including luxury hotels. However, shortages of imported materials may impact the market. Moreover, rise in consumption by developed countries who have strict regulations regarding the appropriate origin of the imports in order to protect the environment is a key opportunity for market.

Vietnam wood industry have recently made strong & effective fluctuations in technologies and governance to ensure they are competitive within worldwide market trends. The continuous development of technology as well as combined with new trade deals proves that it is a good time to be involved in the rapidly rising Vietnamese wood & furniture industry. It is expected that the Vietnam wood industry will become the center of wood furniture processing & exporting of the world as a result of rise in investments in technology & equipment, growth in trade promotion, stabilize domestic raw material & human resources and rise in consumption of wood & wood products during the forecast period.

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Vietnam Wood Industry

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