On 2/10, representatives from businesses and associations gathered at a seminar on domestic timber market development, where Ngo Sy Hoai, General Secretary of the Vietnam Timber and Forest Product Association, projected the domestic timber market could reach 8 billion USD by 2030. This projection is based on an average annual growth of 7-9% from the current average per capita spending of 50 USD on wood products.

This significant potential stems from diverse segments, including residential housing, apartments, public infrastructure, tourism, and the growing trend of industrial biomass. Despite robust domestic demand, Hoai highlighted critical weaknesses: a fragmented market, absence of common standards, and ambiguous origins for many local products, contrasting sharply with high-quality export goods. Further challenges include a scarcity of strong brands, inadequate repair and after-sales services, and a lack of comprehensive market data.

"As a result, consumers pay for wood products, but the market does not adequately reward legal, safe, durable, and responsible products", said Ngo Sy Hoai.

To address these challenges and invigorate the market, Hoai proposed several solutions. He emphasized the necessity of establishing a robust "rulebook" for the timber market, advocating for a comprehensive set of standards for wood products. Legal, traceable, and health-safe wood should form the common foundation for both domestic and international markets. For businesses, the recommendation is to shift from mass production to strategic product segmentation and omnichannel sales. This approach should be coupled with transparent disclosure of product origin and lifecycle, alongside the establishment of clear warranty and repair policies.

A key proposal is to promote green public procurement, driven by alarming statistics from the Ministry of Education. Data shows nearly 125,000 students are over 1,75m tall, yet many school desks and chairs, some dating back 20 years, are no longer suitable for their current physical stature.

Businesses contend that policies promoting green public procurement, by prioritizing domestically sourced, legal wood products, can achieve two critical objectives: stimulating domestic legal timber cultivation and encouraging business involvement, while also providing students and schools access to "green" and health-safe wood products.

Initially, this could involve researching production methods and piloting new desks and chairs in selected schools to assess their suitability. Following schools, green public procurement could expand to other sectors, including hospitals, military barracks, and local committees, thereby paving the way for the broader domestic timber industry.

Ngo Sy Hoai acknowledged the association's interest in green public procurement policies but noted the complexities of implementation. Public procurement involves bidding and costs, and high-quality, environmentally friendly wood products naturally command a higher price. Therefore, Hoai suggested that the private sector might need to establish compensation mechanisms to facilitate its participation in green public procurement initiatives.

Ngo Sy Hoai presenting at the seminar. *Photo: VIBE*

Offering a different perspective, Nguyen Minh Cuong, General Director of Minh Long Wood Company, advocated for policies and initiatives that encourage Vietnamese projects to utilize domestic products. He drew a parallel with 5-star hotels in Thailand, where visitors immediately sense Thai culture through interior details and motifs. In contrast, Vietnamese interiors are often dominated by foreign brands, creating competitive pressure within the domestic market.

"Just as Vietnamese people can create the most authentic and beautiful ao dai, Vietnamese businesses should prioritize production for the domestic market and promote national identity", Cuong stated.

The company representative asserted that wood products manufactured and used in Vietnam adhere to exceptionally high standards. These products typically withstand three primary factors: force, heat, and humidity. Vietnam's distinctive climate features significant temperature fluctuations between seasons, with the northern region experiencing a humid season and coastal areas contending with salt exposure. Consequently, a product that performs well domestically is fully capable of performing effectively in any country worldwide.

However, domestic manufacturers currently adhere to international standards. Cuong proposed, "If a unified standard system were in place, I believe many countries worldwide could learn from Vietnam."

Beyond promoting domestic procurement, the seminar also highlighted e-commerce as an untapped avenue for timber businesses. According to Nguyen Minh Duc, Deputy General Secretary of the Vietnam E-commerce Association (VECOM), the home and living category on e-commerce platforms is experiencing robust growth. Modern technology, including 360-degree videos, AI, and livestreaming, enables customers to explore products with greater ease. The remaining challenge for businesses is to build trust, provide legal documentation, and substantiate product quality to convince consumers.

Nguyen Hoai Bao, Vice Chairman and General Secretary of the Ho Chi Minh City Fine Arts and Wood Processing Association, noted that Vietnam exported over 17 billion USD in wood products in 2025. This figure underscores the competitiveness of Vietnamese products in the world's most discerning markets.

However, despite the dynamism of exports, the domestic market presents significant untapped potential. With a population exceeding 100 million, a continuously expanding middle class, and rising demand for enhanced living spaces, experts emphasize the critical role of the domestic market. Therefore, the timber industry must strategically view the local market and invest accordingly in product development, distribution, and services.

Hoai Phuong