HO CHI MINH CITY: The tariff and non-tariff trade barriers in major markets such as the United States and the European Union (EU) do not faze Vietnamese wood exporters, who are turning them into opportunities by accelerating transformation, strengthening compliance and moving up the value chain to build long-term competitiveness.
Speaking to the media during a factory visit at Nam Tan Uyen Expansion Industrial Park, Vu Quang Huy, chairman and chief executive of TEKCOM Corp, which exports plywood and associated products to more than 50 markets, including the EU, the United States, India, and South-East Asia, said businesses faced numerous trade barriers.
“These are largely beyond our control. What matters is how we adapt and transform.”
Asked about the impact of the US’ 25% tariff on kitchen cabinets, he said TEKCOM’s orders and operations remained steady due to careful planning.
“The United States does not have a production advantage in the wood sector and will continue to import. The key question is how tariffs are applied to countries competing with Vietnam and what solutions local companies take to adapt.”
In the kitchen cabinet segment, his company develops product lines tailored to specific customer groups in each market.
“By working closely with tier-one customers, we co-design products that meet demand,” he said, adding that prices are kept competitive through optimised materials, ensuring a long-term advantage.
The company is also exploring new partnerships to participate more deeply in the value chain, develop brands and build future distribution channels.
Speaking about non-tariff barriers, he said each market would have its own standards for plywood – like BIS (India), Imanor (Morocco) and EUDR (Europe) – along with the requirements to use legally sourced and traceable wood.
TEKCOM is one of the first plywood manufacturers in Vietnam to meet Imanor standards and works to ensure full compliance with EUDR requirements.
“In a fast-changing world, tariffs and trade barriers can become opportunities. Businesses able to adapt quickly will move ahead,” Vu said.
Vietnam produces more than 3.7 million cubic metres of plywood annually.
With China’s output declining from 90% to 60% of global production and continuing to fall, opportunities are increasing for countries such as Vietnam.
“Producing plywood requires both planted forests and a complete supply chain – areas where Vietnam has a competitive edge thanks to its robust supply chain and competitive costs,” Vu said.
However, he also noted some limitations facing the sector.
Vietnam has around five million ha of planted forests, primarily acacia, rubber and eucalyptus, but they mostly supply base plywood rather than high-quality veneer, requiring some imports.
Another challenge is that the country has yet to establish a distinct wood brand or high-value plywood products.
Russia and Europe have birch, China has poplar, Indonesia and Malaysia have meranti and falcata, and Brazil and Chile have eucalyptus and pine.
Vietnam’s acacia remains largely used for low-value segments such as construction and packaging. — Viet Nam News/ANN
