FDI enterprises continue to be key growth driver of wood industry

Foreign direct investment (FDI) enterprises continue to playing important role as one of key growth drivers of the wood industry of Vietnam, according to a report on FDI engagement in Vietnam's wood industry in 2024 released recently by Forest Trends and the Vietnam Timber and Forest Products Association (VIFOREST).

Among over 4,200 businesses directly exporting wood and wood products, FDI enterprises accounted for 777 or 18.5 per cent of the total.

Vietnam earned $15.89 billion from exports of wood and wood products in 2024, up 20.1% year-on-year.

Of the figure, FDI enterprises contributed 48.3% or $7.67 billion.

Last year, the number of new FDI projects in the industry increased by 7% year-on-year, with registered investment capital surging more than 73% against 2023.

Out of 61 new projects invested in by 16 countries and territories, 25 were from China with registered investment capital of $185.3 million, accounting for 41% and 35.7% of the totals, respectively. These projects focused on wood processing, including products such as beds, cabinets, tables, chairs, and sofas.