NZ-Viet Nam Deal Expands Timber Trade, Recognizes Radiata Pine Standards

In a move that signals deepening trade ties and growing export potential, New Zealand and Viet Nam have signed a new Cooperation Arrangement that will enhance market access for New Zealand’s forestry sector. The agreement, announced by Forestry and Trade Minister Todd McClay, aims to significantly increase timber exports and reduce technical trade barriers, particularly in the construction sector.

Opening the Door for New Zealand Timber in Asia

A key highlight of the agreement is the official recognition of New Zealand’s radiata pine under Viet Nam’s evolving timber construction standards. This recognition is expected to increase the demand for New Zealand timber products in the Vietnamese market, particularly in the construction and furniture manufacturing sectors, both of which are rapidly expanding.

“Viet Nam’s economy has more than doubled in the past decade and is expected to see some of the fastest global income growth over the next,” said Minister McClay. “That means more construction, more demand for sustainable products—and more opportunity for New Zealand timber.”

Currently, New Zealand exports $48 million worth of sawn timber to Viet Nam annually, but this new arrangement is poised to scale that figure dramatically.

Strengthening a $2.68 Billion Trade Relationship

The agreement comes within the context of an already strong $2.68 billion two-way trade relationship between New Zealand and Viet Nam. By aligning technical standards and eliminating market entry challenges, the new arrangement enhances both countries' ability to capitalize on existing trade agreements, including the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).

“This will grow our $2.68 billion two-way trade and significantly bolster the $48 million worth of sawn timber we currently export into Viet Nam,” McClay said.

The partnership also reinforces New Zealand’s ongoing efforts to add value to raw materials, by prioritizing the export of processed wood products over unprocessed logs. This approach supports domestic processing industries and creates more jobs within New Zealand, while meeting rising demand in international markets for sustainable, high-quality construction materials.

Supporting Sustainability and Market Growth

Viet Nam is a major global hub for timber processing and furniture manufacturing. By ensuring New Zealand’s radiata pine meets local timber standards, the cooperation arrangement offers a dual benefit: expanding market access for exporters and supporting Viet Nam’s construction sector with environmentally sustainable materials.

“This agreement adds value to New Zealand wood products and offers opportunities in addition to exporting logs,” McClay noted. “It boosts our export potential and helps double our exports by value in 10 years.”

As countries around the world move to decarbonize and promote environmentally responsible sourcing, radiata pine—grown under New Zealand’s strict environmental and sustainability practices—represents a desirable product in the global market.

Looking to the Future

This new agreement demonstrates the Government’s commitment to expanding New Zealand’s export base and building resilience in key sectors like forestry. It also represents a proactive approach to trade diplomacy, focusing on breaking down technical barriers and building long-term partnerships in growth regions like Southeast Asia.

With Viet Nam’s construction sector set to expand significantly over the next decade, the timing of this arrangement could not be more strategic. The recognition of New Zealand’s timber standards means New Zealand is now well-positioned to become a key supplier in Viet Nam’s infrastructure development journey.