Ho Chi Minh City is emerging as a leading global centre for wood and furniture production as international demand rebounds and sustainability becomes a decisive market driver. At a seminar held on October 23, industry leaders, associations, and government officials highlighted the city’s growing competitive advantages, strengthened supply chain ecosystem, and strategic orientation toward green and digital transformation.
Vietnam’s wood industry has expanded dramatically over the past two decades, rising from under USD 200 million in exports in 1999 to a projected USD 20 billion in 2025, making the country the world’s second-largest exporter of wooden furniture. HCM City, following its administrative merger, now accounts for almost half of national wood export revenue, supported by integrated clusters spanning raw materials, processing, logistics, and port infrastructure. This positions the city to evolve into a regional and global production hub, according to HAWA Chairman Phung Quoc Man.
Industry consolidation is also under way. HAWA and BIFA are merging, expanding HAWA’s membership to nearly 1,000 enterprises. The unified association aims to work more closely with policymakers to stabilize production, drive sustainable growth, and strengthen global market access. Speakers stressed that Vietnam must shift from contract manufacturing to developing value-added products and branded offerings, supported by investment in design, marketing, and high-quality talent.
A dual transition, including green and digital, was repeatedly identified as essential for long-term competitiveness. Industry leaders called for low-emission factories, green industrial clusters, digitalized supply chains, and compliance with global standards such as FSC, PEFC, CBAM, and the EUDR. Several firms showcased progress: An Cuong Wood Working reported a 20% productivity increase after adopting SAP S/4HANA, while others emphasized digital traceability, better HS code guidance, and early-warning tools to manage trade risks.
Enterprises also raised issues related to high tariffs in key markets, compliance costs, and aging factory infrastructure, proposing measures ranging from preferential financial support to streamlined administrative procedures. The need for a large-scale trade exhibition centre in HCM City was underscored as crucial for expanding international promotion.
Closing the event, HCM City Chairman Nguyen Van Duoc reaffirmed the city’s commitment to supporting the sector through practical reforms, improved infrastructure, and stronger policy coordination. With a tradition of innovation and a clear strategic roadmap, the city aims to build a modern, green, and globally competitive wood and furniture ecosystem, targeting USD 15 billion in exports by 2035.
(Source: Vietnam News)
