Sustainable future for the wood industry: [Part 3] Green transition

Inevitable trend

According to Mr. Nguyen Tuan Hung, Department of Forestry and Forest Protection, green transformation is not only a trend but also a mandatory requirement for the Vietnamese wood industry to avoid pressure when having to comply with EUDR regulations. The Vietnamese wood processing industry needs to promote the planting of large certified timber forests, limit the exploitation of natural forests and apply international environmental standards to meet market demand.

Mr. To Xuan Phuc, an expert from Forest Trends, warned: “If businesses do not quickly shift towards sustainability, the risk of losing the market is very high. Importing countries are applying very strict technical barriers, especially requirements on legal wood traceability and environmental certification.”

Vietnam's wood enterprises are lagging behind other countries in automation. Photo: V.D.T.

Mr. Pham Ngoc Tuan Anh, Director of Forestry and Wood Certification Services Company of SGS Vietnam, proposed a number of solutions to help the Vietnamese wood industry adapt to the green transition process. Accordingly, it is necessary to develop sustainable raw material areas, including encouraging the planting of large FSC-certified timber forests, reducing dependence on imported raw materials. Applying clean production technology by using renewable energy, improving production lines to save raw materials and reduce emissions. Taking advantage of support policies is proactively approaching support programs of the Government and international organizations on green transition. Reducing dependence on exports by exploiting the potential of the domestic market with environmentally friendly products.

Ms. Nguyen Thi Thu Hoai, Chief of Office of Dong Nai Wood and Handicraft Association shared: “Visiting Binh Dinh, we saw that most of the wood industry enterprises here not only innovate technology but also have effective production strategies, helping other enterprises in the industry learn from experience in modern production models, meeting the need for green transformation”.

Forming the supply chain

Faced with the context of supply chain disruption due to global geopolitical conflicts; in addition, the wood industry also has to face technical barriers and tax policies of major export markets such as the United States and Europe, many opinions say that the Vietnamese wood industry must strengthen the chain of links between processing enterprises, forest growers and raw material suppliers for sustainable development. Especially now, domestic raw wood only meets about 30-35% of production needs.

Mr. Nguyen Minh Hoang, Director of Binh Dinh Forestry Company BFC, said: "We import wood from Russia and the United States for processing, but if we can proactively source domestic materials, the wood industry will have more advantages."

Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, said that developing large timber forests is inevitable. Photo: V.D.T.

In the first quarter of 2025, the country's wood exports reached 3.8 billion USD, up 7% over the same period last year. However, businesses are still facing difficulties due to a 10-15% increase in raw material prices. In addition to the issue of proactively sourcing raw wood, Mr. Le Van Luong, General Director of Dai Thanh Wood Technology Joint Stock Company (Quy Nhon City, Binh Dinh), emphasized the importance of digital transformation and technology investment.

“Although many businesses have invested on a large scale, the connection in the supply chain is still not tight. Without building a synchronous supply chain, the wood industry will find it difficult to develop strongly and sustainably. Businesses need to cooperate more closely to share experiences and connect in the supply chain to increase competitiveness,” Mr. Luong shared.

Mr. Le Xuan Quan, Chairman of the Dong Nai Wood and Handicraft Association, is also very concerned about the "gap" in the supply chain of the Vietnamese wood industry. "A question that always haunts me is why the Vietnamese wood industry has not yet formed a strong enough supply chain to serve the industry's operations. Is it because the connection between wood industry enterprises is still weak, the broken supply chain has caused many enterprises to face many difficulties in production activities?", Mr. Quan wondered.

The need for green transformation for wood industry enterprises is increasingly urgent. Photo: V.D.T.

Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, commented that currently, policies related to the development of the world's wood industry are changing a lot. Wood industry enterprises must first pay attention to product quality, then to market issues, green production, application of science and technology, especially automation in production.

At the same time, Mr. Tuan said that the supply chain in the wood industry is currently having problems. In the current difficult context, the wood industry needs a supply chain that ensures each stage, and there must be businesses that are bold enough to stand up and build a complete supply chain to ensure low costs, thereby ensuring competitive prices.

“Planting large timber forests is indispensable. Therefore, the Vietnam Timber and Forest Products Association needs to coordinate with local associations and businesses to advise the Ministry of Agriculture and Environment to develop support policies for planting large timber forests,” Mr. Pham Anh Tuan shared.

Source: https://nongnghiep.vn/tuong-lai-ben-vung-cho-nganh-go-bai-3-chuyen-doi-xanh-d743482.html