Traditionally, Vietnam has been a producer of outdoor furniture; but of late, the country is rapidly moving towards the production of indoor furniture.
There is already a long list of products which dealers and retailers prefer importing from Vietnam. Here we review the Furniture Industry in Vietnam and explain why you should consider Vietnam as the destination to source Indoor Furniture.
WHY PREFER VIETNAM OVER CHINA?
Vietnam, which is a major exporter of electrical equipment, footwear and machinery, is also the second largest furniture producer in Asia after China.
The country’s furniture industry is supported by the Vietnamese Government Wooden Product Export policy, influencing the industry to deviate from the simpler, less skilled outdoor products to the more skilled indoor furniture products.
On the other hand, recent changes in Chinese Government policies are directed towards the development of high-technology industries. Thus the focus seems to shift away from labour intensive industries such as furniture manufacturing.
THE ADVANTAGE OF VIETNAM OVER OTHER COUNTRIES?
Around half the world furniture production comes from low-income countries. This Asian nation qualifying as one such, implies that there is a significant potential in furniture sourcing from Vietnam. The country also has access to legal sustainable wood, such as rubber wood and cajuput wood.
When it comes to production costs, Vietnam scores over its neighbors Thailand and Malaysia, which are relatively more expensive markets. Meanwhile, Indonesia still has some political issues.
High income countries, such as Germany, USA, UK, Canada and Italy only account for 45% of global furniture production. At the same time, Southern European Countries and Canada have
witnessed sharp declines in furniture production since the beginning of the economic crisis.