Business Trends Abroad
China Sees Decline In Sawn Wood Imports
China – According to the latest data available from China Customs, from January to September 2025 China’s sawn wood imports declined 12 percent to 18.34 million cubic meters valued at US$4.776 billion, down 11 percent over the same period of 2024.
The recent tariff friction between China and the United States has had a significant impact on manufacturers. Fluctuations in the timber supply chain have led to a significant reduction in sawn wood imports and pushed up input costs has intensified the operating pressure on enterprises.
Russia was the largest supplier of China’s sawn wood imports with around 48 percent of China’s sawn wood being imported from Russia from January to September 2025. China’s sawn wood imports from Russia totaled 8.728 million cubic meters, down eight percent over the same period of 2024.
Thailand was the second largest supplier of sawn wood imports and 18 percent of China’s sawn wood were imported from Thailand from January to September 2025. China’s sawn wood imports from Thailand totaled 3.244 million cubic meters, down 15 percent over the same period of 2024.
Imports of sawn wood from the two major supply countries have dropped significantly leading to a larger decline in China’s overall sawn wood imports.
In addition, China’s sawn wood imports from Canada, Belarus, USA, Gabon, Finland and Sweden fell sharply in the first three quarters of 2025.
In contrast, China’s sawn wood imports from the Philippines and Vietnam rose 20 percent and 91 percent respectively from January to September 2025.
Vietnam’s Wood And Wood Products Exports Rise Despite Mixed Market Signals
Vietnam – According to the Vietnam Customs Office, exports of wood and wood products (W&WP) from Vietnam reached US$1.55 billion in November 2025, up five percent compared to November 2024, according to the latest data available. Wood product (WP) exports accounted for US$1.06 billion, representing a three percent year-on-year increase.
In the first 11 months of 2025, Vietnam’s W&WP exports totaled US$15.6 billion, up six percent compared to the same period in 2024. Of this amount, WP exports generated US$10.67 billion, an increase of five percent year on year.
Vietnam’s W&WP imports in November 2025 amounted to 483,200 cubic meters, valued at US$154.6 million. This represented a decline of three percent in volume and 2.5 percent in value compared to October 2025. Compared to November 2024, however, imports rose by three percent in both volume and value. Over the first 11 months of 2025, imports accumulated to 6.12 million cubic meters, worth US$1.94 billion, up 21 percent in volume and 18 percent in value year on year.
Vietnam’s exports of non-timber forest products (NTFPs) in October 2025 reached US$74.59 million, up 12 percent compared to September 2025 and 22 percent compared to October 2024. In the first 10 months of 2025, NTFP exports generated US$715.18 million, an increase of nine percent over the same period in 2024.
Exports of wood and wood products from Vietnam to the United States in November 2025 totaled US$819 million, down one percent compared to November 2024. In the first 11 months of 2025, W&WP exports to the U.S. expected to reach US$8.6 billion, up almost six percent compared to the same period in 2024.
Exports of bedroom and dining room furniture from Vietnam in November 2025 earned US$202 million, down 15 percent year on year. Over the first 11 months of 2025, exports of living room and dining room furniture are estimated at US$2.3 billion, a decline of five percent compared to the same period in 2024.
According to preliminary statistics, Vietnam’s imports of wood and wood products in November 2025 expected to reach US$290.0 million, up 17 percent compared to October 2025 and 26 percent higher than in November 2024. In the first 11 months of 2025, imports of wood products were estimated to have increased significantly, reflecting strong demand from Vietnam’s domestic wood-processing industry.
Emerging Momentum In Europe’s Construction Sector
Europe – According to published reports, Europe’s construction market stabilized, showing early signs of renewed momentum emerging in several key economies. Recovery is being supported by pent-up residential demand and rising infrastructure investment, while the medium-term outlook for the sector has turned cautiously positive, according to a new report by Bain & Company.
These findings are based on Bain’s Building Blocks Construction Indicator, which tracks activity and sentiment across European construction markets. While a full rebound is not yet assured, the report suggests that the worst phase of the downturn has passed in much of the region.
Recent interest rate cuts by the European Central Bank are expected to support the recovery, as lower borrowing costs encourage private households to invest in refurbishments and stimulate capital spending by commercial and industrial players. At the same time, years of unmet demand for new housing are beginning to translate into fresh residential construction activity.
Public infrastructure investment is also providing support, with spending picking up following the conclusion of several European election cycles, the report said.
Bain noted that construction activity in markets such as the Netherlands and the Nordic countries has already reached a turning point, with the UK likely to follow. However, the recovery is expected to remain more subdued in France and Germany, where growth is projected to return only during the course of next year. Italy stands out as an exception, with construction activity forecast to decline further as government incentive schemes are phased out.
In the non-residential segment, office construction is expected to lead growth in selected markets and prime locations, despite the continued shift towards remote and hybrid working. Overall, Bain forecasts modest positive growth in this segment between 2025 and 2028.
Residential construction is set to become one of the main growth drivers for the European construction sector through to 2028, underpinned by structural housing shortages, particularly in social housing, and gradually stabilizing economic conditions.
Bain cautioned, however, that the emerging recovery remains vulnerable to renewed economic uncertainty, which could disrupt investment and delay a broader rebound across the sector.
Japan Housing Starts Fall To Record Low
Japan – Japan’s housing starts edged up slightly in October, according to the latest data available, compared with the previous month, offering only limited relief after months of decline. On a cumulative basis, however, the number of housing starts from January to October fell to a historically low level.
According to the latest data, the unexpected monthly increase in October is seen as a modest technical rebound rather than a sign of a sustained recovery. The overall trend in Japan’s residential construction sector remains firmly negative, with housing starts consistently weakening throughout the year.
The prolonged downturn reflects subdued demand for new homes, demographic pressures linked to Japan’s ageing and shrinking population, and a cautious investment environment. Rising construction costs and uncertainty over the broader economic outlook have also weighed on developers’ activity.
Despite the slight uptick in October, the sharp contraction over the first 10 months of the year underscores the depth of the slowdown in Japan’s housing market, setting a negative record in cumulative terms and pointing to continued weakness heading into the final months of the year.
Stakeholders Welcome Agreement On EUDR In Brussels
European Union – Representatives of European Union (EU) Member States, the European Parliament and the European Commission have agreed in Brussels on a further one-year postponement of the EU Regulation on deforestation-free products (EUDR), alongside planned simplifications to its implementation. The German Forest Owners’ Association (AGDW), which represents forest owners and family-run agricultural and forestry businesses, has welcomed the agreement, describing it as a necessary step to limit additional administrative burdens on forest owners.
The agreement was reached during trilogue negotiations. The co-legislators decided to postpone the application of the EUDR until December 30, 2026 and to introduce substantive adjustments to the regulation. According to AGDW, these changes are expected to reduce information and reporting requirements for micro and small enterprises and to ease administrative pressure along the supply chain. The European Commission is also expected to review the administrative costs associated with the regulation by April 30, 2026, with the option of proposing further simplifications.
AGDW President Prof. Andreas Bitter said the combination of postponement, reduced reporting obligations and continued review of the regulation provides the necessary scope for practical implementation. He added that further simplifications remain under discussion, including the possible waiver of individual reporting obligations for micro and small enterprises and a shift towards one-time reporting requirements for medium-sized companies.
Max von Elverfeldt, Chairman of the Family Farms and Forestry Association, said the agreement helps to avoid regulatory excesses. He stressed that EU Member States such as Germany do not face deforestation issues but instead protect and preserve forests through active forest management. In his view, the agreement partly reflects these realities.
The Council of the EU and the European Parliament must now formally approve the outcome of the trilogue negotiations. According to AGDW, this would provide legal certainty for land users before the end of the year. Bitter and Elverfeldt said they will closely monitor the implementation of the agreement to ensure that burdens on land users in Germany are kept to a minimum.
Finland’s Forest Industry Weakened By Global Uncertainties As Production And Exports Fall
Finland – Finland’s forest industry continued to face a difficult operating environment in the third quarter of 2025, according to the most recent data available, as global economic uncertainty, geopolitical tensions and disruptions to international trade weighed heavily on consumer confidence and demand. Market conditions remained subdued across all major product groups, affecting both the chemical forest industry and the wood products sector.
The weak economic outlook, combined with sluggish global demand, continued to pressure the pulp and board markets, while the ongoing downturn in construction weighed on sawn timber and plywood producers. After a stronger first half of the year, forest industry production in Finland began to contract as companies adjusted output to align with market conditions.
Production volumes decreased across all major product categories. Paper production reached 0.7 million tons in the third quarter, a decline of 3.1 percent compared to the same period in 2024. Board production dropped sharply by 18.2 percent to 0.8 million tons. Pulp output totaled 1.6 million tons, down 13.7 percent year-on-year. Sawn timber production also weakened, falling 3.9 percent from the previous year to 2.5 million cubic meters.
The downturn in production was reflected in export performance. According to Finnish Customs, the value of forest industry exports totaled EUR 3.0 billion in the third quarter, with the pulp and paper industry accounting for EUR 2.1 billion and wood products, including furniture, EUR 0.8 billion. Overall, export value declined by 7.5 percent year-on-year, driven mainly by lower pulp and paperboard exports.
Maarit Lindström, Chief Economist of the Finnish Forest Industries Federation, noted that global uncertainty—intensified by the recent U.S. tariff escalation—was visible across the sector in the third quarter. “Production of paper, board and pulp also contracted at the European level. The sector is going through challenging times, but we received some encouraging news last week from the EU policy front. The EU’s new bioeconomy strategy is promising, heading in the right direction, and shows stronger recognition of renewable, biodegradable and recyclable materials as drivers of European competitiveness and sustainable growth,” Lindström said.
Despite difficult market conditions, the industry remains cautiously optimistic that strengthening policy support for bio-based materials may help lay the groundwork for improved competitiveness and future recovery.
German Furniture Associations Call For Stronger Measures To Boost Housing Construction
Germany – The German furniture industry is urging the government to introduce stronger measures to revive housing construction. Although the number of housing permits has been increasing since the beginning of 2025, the number of completed buildings continues to decline, said Leo Lübke, President of the Association of the German Furniture Industry (VDM), at a joint general meeting of VDM and the Associations of the German Upholstered and Home Furniture Industry in Frankfurt, according to the Verband der Deutschen Möbelindustrie (VDM). Current forecasts indicate that the downward trend in housing completions will not reverse until 2027.
Lübke stated that faster and simpler approval procedures alone are insufficient to increase housing output. He called for more attractive and consolidated subsidy programs, along with temporary reductions in real estate transfer tax, additional special depreciation options for new construction, and subordinated loans for private homeowners. The decline in housing construction, combined with weak consumer demand and U.S. customs policy, remains one of the main challenges for the German furniture sector, Lübke said.
EU institutions reached an agreement to revise and postpone the implementation of the EU Deforestation Regulation (EUDR) until the end of 2026. The proof-of-origin requirements for raw materials such as wood will apply only to the first placer on the market, and reference number transfers will stop after the first downstream processor. According to Managing Director Jan Kurth, the amendments align with the demands of the entire wood and furniture supply chain and will reduce bureaucracy for all subsequent processors.
The members also discussed initiatives to promote exports. In 2026, a German joint stand will appear for the fifth consecutive time at the U.S. kitchen trade fair KBIS. A third joint presence is scheduled for the Clerkenwell Design Week in London. Preparations are underway for collective stands at the Index/Hotel Show in Dubai and the China Kitchen Fair CBD in Guangzhou, as well as a first business delegation trip to Chicago and New York.
Guest speaker Philipp Trompeter from Dr. Wieselhuber & Partner explained possible uses of artificial intelligence (AI) in the furniture industry. AI applications include realistic product visualization, trend analysis, optimization of receivables management and workforce planning, and identification of material cost-saving opportunities. Trompeter emphasized that high data quality is essential for successful AI projects.
Holger Siebert, Vice Chairman of the Caravaning Industry Association, reported on joint marketing activities of member companies. He said that various campaigns, including television advertising, have significantly improved the public image of the sector in recent years.
