Vietnam trade group tells US Dept. of Commerce that 150 Vietnamese wood processors rely on US demand, legal plantation acacia, and imported species; group notes US cannot meet 20% of its domestic wood demand, urges bilateral approach to solution

May 5, 2025 (Targeted News Service) –

By Jaymar B. Talang

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com

WASHINGTON , May 4 -- The Forest Products Association of Binh Dinh (FPA Binh Dinh), representing over 150 wood processing companies in Vietnam , has submitted comments to the U.S. Department of Commerce , expressing concerns about the Section 232 national security investigation into timber and lumber imports. In a letter to Commerce Secretary Howard William Lutnick , FPA Binh Dinh Chairman Nguyen Sy Hoe outlined the organization's views, emphasizing the importance of the U.S. market to its members.

The letter details the significant demand for timber and lumber in the United States , citing its large economy and status as the world's largest consumer of wood. The FPA Binh Dinh acknowledges the substantial contribution of the U.S. forest products industry to the national GDP and employment, but also points out that domestic production does not fully meet demand. According to the letter, " The United States is the world's leading consumer of wood, accounting for about 20% of global wood production."

The association highlights the role of foreign supply chains in bridging this gap, with Canada being the largest supplier, providing "approximately 80-90% of softwood lumber imported into the United States ." The letter also notes increased exports from Europe and other suppliers like Chile , Brazil , and New Zealand .

A key concern raised by FPA Binh Dinh is the potential impact of U.S. trade policies on its members. The letter emphasizes that its member companies "mainly produce garden and outdoor wood products" for export to the U.S. market. These companies utilize both legal, sustainably managed plantation timber from Vietnam and imported wood.

Nguyen Sy Hoe stresses the importance of these exports to the local economy, stating that plantation acacia wood is "very important to our people, especially helping to reduce poverty for people in mountainous and rural areas." He also explains that the use of imported wood species from the U.S. , Canada , and Europe leads to higher product prices, making it "difficult to compete in the international markets."

The letter addresses the issue of foreign government subsidies and unfair trade practices, acknowledging their potential impact on U.S. industry competitiveness. However, it also argues that many countries compete due to "lower labor costs, or an abundant human resource that is always ready to do the heavy, low-income jobs in the wood industry."

Regarding the feasibility of increasing domestic timber and lumber capacity in the U.S. , the FPA Binh Dinh believes it is possible but faces challenges such as logging restrictions, labor shortages, and market volatility. The letter states that " U.S. forests are capable of meeting all of their needs, but factors such as mill capacity, logging restrictions, and labor shortages prevent complete self-sufficiency."

The FPA Binh Dinh expresses concern about the impact of current U.S. trade policies, particularly tariffs, which have led to "higher costs for consumers and industries that rely on these materials." The letter points to the recent decline in home builder confidence as evidence of these concerns.

In conclusion, Nguyen Sy Hoe urges a balanced approach, stating, "The FPA Binh Dinh would prefer a bilateral approach, with the two governments working with each other in addressing the problems." The association expresses its willingness to collaborate with both U.S. companies and the U.S. government "for mutual understanding and collaboration between the two sides."

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Read full text of the public communication here: https://downloads.regulations.gov/BIS-2025-0011-0040/attachment_1.pdf

View Regulations.gov posting on April 10, 2025 , and docket information here: https://www.regulations.gov/comment/BIS-2025-0011-0040

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com