Binh Dinh (VNA) 𒁏- The wood industry of the south-central province of Binh Dinh is solidifying its position in the global export market, thanks to strategic alignment with global demand and consumption trends. Local businesses are ramping up sustainable exports, contributing to income generation and driving economic growth.

Towards a sustainable "wood hub"

Binh Dinh province is home to vast timber plantations with key species such as acacia, eucalyptus, and pine. The development of large-scale forests adhering to Forest Stewardship Council (FSC) standards and carbon credits has strengthened the province’s international competitiveness. Local wood-processing enterprises focus on using certified materials, ensuring legal compliance, traceability, environmental protection, and green economic growth. According to the Binh Dinh Wood and Forest Products Association, the province currently has nearly 10,000ha of large timber plantations, with over 7,600ha certified by FSC. By 2025, Binh Dinh aims to expand its timber plantations to 10,000ha, with nearly 16,000ha certified by FSC, targeting 50,000ha by 2030. As one of Vietnam’s top four wood-processing hubs, Binh Dinh is considered the "wood capital," playing a critical role in the timber and forestry product processing chain. Le Minh Thien, Chairman of the Binh Dinh Wood and Forest Products Association, said the province has attracted major investments in wood processing, leading to the formation of modern industrial parks. Local companies are investing in advanced technology to boost productivity, diversify designs, and meet market standards. Binh Dinh's wood industry serves both domestic and international markets, exporting high-quality, eco-friendly products to the US, EU, Japan, the Republic of Korea, and beyond. Tan Dai Hung Co., Ltd. (Nhon Hoi Industrial Park, Quy Nhon city) specializes in manufacturing metal and plastic rattan furniture, mainly shipped to the US and Europe. Over the years, the company has catered to demanding markets and focused on establishing sustainable relationships with partners while seeking new opportunities and learning from industry leaders. Le Quang Bao Anh, Deputy Director of Hoang Giang Trading Co., Ltd. (Phu Tai Industrial Park, Quy Nhon city), revealed that the company operates five factories across nearly 100,00sqm, churning out 30,000 products each month and providing stable employment for over 1,000 locals. Hoang Giang is committed to sustainable development by producing high-quality products using modern materials and investing in advanced technology and closed production lines.

Paving the way forward

In 2024, Binh Dinh’s wood export value surged to nearly 1.1 billion USD, a 15% increase from 2023, accounting for 62% of the province's total export value. The province also attracted 31 investment projects, raising the number of wood-processing enterprises to over 370, providing jobs for 30,000 local workers. However, in 2025, the wood industry faces significant challenges due to global supply chain disruptions, reduced purchasing power in the US, EU, and UK, and the downsizing of retail giants, all of which have directly impacted export orders. Markets such as the US, EU, and UK are experiencing economic challenges due to tight monetary policies and high interest rates, which have led to a sharp decline in consumer purchasing power. Many furniture retailers have downsized or closed, significantly affecting export orders for Binh Dinh’s wood businesses. New regulations, including the EU Deforestation Regulation (EUDR), Carbon Border Adjustment Mechanism (CBAM), and the US Lacey Act, impose stringent requirements on the origin and sustainability of timber materials, creating additional hurdles for wood enterprises accessing export markets. To meet these demands, businesses must prove the legal and sustainable origin of materials, requiring substantial investment in supply chain management and monitoring. In 2025, Binh Dinh's wood industry aims to achieve a growth rate of 7-10% in export revenue, reaching approximately 1.2 billion USD. The creation of a diversified product chain will enable businesses to expand export networks, promote the Vietnamese wood brand, and help the province reach its target of 2 billion USD in wood exports. This is part of Vietnam’s broader goal of achieving 20 billion USD in wood exports from 2021 to 2030. Pham Anh Tuan, Chairman of the Binh Dinh People's Committee, announced that the province will hold monthly dialogue sessions with businesses to address challenges and support sustainable development. The province is focused on public investment, boosting domestic consumption, and increasing wood exports, aiming to reach 1.5 billion USD in wood exports in 2025./.