The problem brought in 18.5 billion USD of Vietnamese wood furniture

In the first two months of the year, export turnover of wood and wood products reached 2.61 billion USD, up 5.8% over the same period in 2025, according to the Ministry of Agriculture and Environment.

The situation was favorable when the Middle East conflict broke out. Vietnam’s consumption of wooden furniture in this area is not large, but indirect impacts are unavoidable. Mr. Nguyen Chanh Phuong, Vice President of Ho Chi Minh City Handicraft and Wood Processing Association (Hawa), said the pressure on transport costs may increase.

The impact was even immediate at the Ho Chi Minh City Furniture & Furniture Export Fair (HawaExpo 2026) that took place recently. Some buyers and visitors from the Gulf region and Europe also could not arrive as expected due to flight disruptions.

“Geopolitical risks, including the Middle East conflict, increase supply chain instability, production costs, logistics and market psychology,” Mr. Vu Ba Phu, Director of the Trade Promotion Department (Ministry of Industry and Trade), commented at the event.

The sudden war took place in the context of the wood furniture industry aiming to export 18.5 billion USD this year, an increase of about 7% compared to 2025. Mr. Phung Quoc Man, Chairman of Ho Chi Minh City Handicraft and Wood Processing Association (Hawa), commented that this is a “challenging number but completely reasonable”.

According to experts, the industry still has the advantage of being the leading capacity in Southeast Asia, with the US postponing the tax on kitchen cabinets. Along with that, businesses proactively adapt to instability by diversifying models, customers and sales channels to increase opportunities and disperse risks.

Mr. Man pointed out a clear shift in business thinking, from traditional outsourcing (OEM) to customized manufacturing (ODM) in the industry. For example, Forexco Quang Nam brought to HawaExpo 2026 a relaxation chair model with sophisticated criss-cross technique, attracting the attention of buyers from Europe, the US and the UAE.

Or Nghia Son Furniture’s collection of high-end dining tables combining wire wrapping techniques on wood also received a lot of attention. Although the number of visitors decreased due to disruption of flights from the Middle East, company representatives said business opportunities at the event still increased by about 25%, with many deals under negotiation.

Mr. SangJoon Byun, Editor-in-Chief of interior magazine GAGU Guide (Korea), said buyers appreciate the improvement efforts. “Many Vietnamese products are now accepted at higher prices thanks to their superior design and quality compared to some other mass production markets in Southeast Asia,” he said.

Enterprises are also taking advantage of finding more markets, attracting new buyers from India, Europe, and the Middle East. At the exhibition, Wood Concept said the number of visitors from the East Coast of the US, Northern Europe, the Caribbean and Bulgaria increased significantly. USofa recorded the arrival of new guests from Korea, Japan and UAE.

Some are also looking to retail online. Mr. Le Dai Thang, Director of Nghia Son Furniture, revealed 217 times growth within 5 years on Amazon. Last year, they sold 120,000 USD in just one day of this exchange’s Prime Day shopping festival.

The wood furniture industry still has many other opportunities and adaptation options that need to be implementedto overcome immediate fluctuations and develop sustainably. Ms. Trang Dai, Senior Account Manager of Amazon Global Selling Vietnam, suggested the “value gap” that global customers seek.

This segment is temporarily called “affordable luxury”, meaning high quality products, beautiful designs but reasonable prices. Vietnamese businesses have an advantage in participating, thanks to domestic natural wood sources such as melaleuca and rubber, helping to proactively produce and control costs.

At the same time, businesses need to go green to meet the “traceability” and “anti-deforestation” requirements of the EU and US. This is also the task assigned to Hawa by Chairman of Ho Chi Minh City People’s Committee Nguyen Van Duoc. “The target of 80% green products must be achieved to turn challenges into competitive advantages,” he stated.

Currently, Ho Chi Minh City accounts for half of the country’s wood furniture export proportion. Mr. Duoc encouraged businesses to switch from pure outsourcing to mastering design and technology to increase added value.

In addition, while the global supply chain is “shaking” due to conflicts, international links also need to be more effective. On March 4, Hawa took on the role of coordinator of the ASEAN Furniture Industry Council (AFIC). New AFIC Chairman Nguyen Quoc Khanh said that the global supply chain is restructuring.

According to him, it is necessary to increase intra-bloc connectivity and trade, turning ASEAN into a furniture supply chain center. Initially, the Council proposed to establish the AFIC Green Initiative to promote regional cooperation on traceability, legal compliance and supply chain transparency.

“When global buyers look for supplies, ASEAN should not appear as individual markets. Instead, they need to see a complete ecosystem where countries complement rather than compete with each other,” he said.