This paper reports findings of surveys into small-scale sawmilling and timber processing in Phu Tho Province and the Tam Dao National Park buffer zone in northern Vietnam. The objective of these surveys was to examine the extent to which small sawmills and timber processors utilise farm-grown timber, so as to explore the prospects for expansion of farm-grown timber markets. The operational scope, supply chain and value chain of the industry are reported. Resource availability and current and future perspectives are discussed. Timber prices were found to vary greatly between species and study areas. Species most in demand by enterprises are Artocarpus heterophyllus, Melia azedarach, Manglietia conifera, Acacia spp., Chukrasia tabularis and Erythrophloeum fordii. Small-scale sawmilling and timber processing activities fit well with rural communities in Vietnam and have potential for further development if current constraints can be overcome. Further tree planting is needed to meet the presently unsatisfied timber demand and to create income and employment. Information from sawmillers and timber processors suggests the types of species that farmers should be considering for their plantings.