December 31, 2022
Manufacturing -
A Comprehensive Look at the Vietnam Furniture Industry | OneLink Holdings
The workforce has been steadily growing and wages are rising, meaning that furniture manufacturing in this region could be poised for growth. Here’s what you need to know about the industry today…
The furniture industry in Vietnam is seeing an increase in exports and is becoming a major player on the global stage. This is due to the many advantages that Vietnam offers manufacturers and suppliers, such as access to quality materials, competitive labour costs, and an extensive network of shipping routes. In this blog post, we’ll take a comprehensive look at the Vietnam furniture industry including its current state, trends, and opportunities for growth.
State of the Industry
The Vietnamese furniture industry has grown significantly over the past decade. In 2021, Vietnam’s wood and furniture exports increased by up to 20% when compared to the previous year (2020). Vietnam has since grown to be the second-biggest exporter of furniture globally. Furniture is exported from Vietnam to more than 120 countries, with the main markets being the U.S, U.K, Canada, Australia and Japan. Over half a million Vietnamese are employed by over 5600 furniture manufacturing companies that produce furniture for domestic use and export.
The key driver fuelling growth is the rising standard of living, leading to the increased introduction of premium products. This growth can also be attributed to several other factors such as improving infrastructure, better access to materials and equipment, and improved technology adoption. Additionally, government initiatives such as free trade agreements have also helped spur growth in the industry.
Key Market Production
Vietnamese furniture manufacturers specialise in both indoor, outdoor and custom-made furniture production. Currently, the indoor furniture manufacturing dominates the export market, with 70% of manufacturers producing indoor furniture.
Manufacturers mainly use wood for production, but other materials can also be used such as plastic, aluminium and steel. With no shortage of sustainable wood supplies in Vietnam, it is near impossible to not find an FSC-Certified supplier that meets all legal requirements. The most common wood to be used in Vietnam manufacturing is Rubberwood and Acacia, due to the durability and ability to handle heat and moisture. The key indoor furniture Vietnamese manufacturers can produce include:
- Beds
- Armchairs
- Tv cabinets
- Couches
- Office desks
- Kitchen benches, tables and chairs
- Chairs
Outdoor furniture such as sunbeds, tables, chairs and hammocks are also manufactured.
Trends & Opportunities
The furniture industry in Vietnam is becoming increasingly competitive. As a result, Vietnamese manufacturers are looking for ways to differentiate themselves from their competitors through innovative design and high-quality products. Additionally, they are focusing on developing international markets by increasing their presence at international trade shows and establishing distribution networks abroad.
In addition to new product development, manufacturers are also looking for ways to improve production processes by investing in automation technology and modernized equipment. This will not only reduce costs but also help them keep up with demand from customers around the world who are increasingly looking for faster delivery times and higher quality products. Finally, there is an increasing focus on environmental sustainability within the industry as more companies invest in eco-friendly practices such as energy efficiency initiatives and waste management programs.
Top Furniture Manufacturing Companies
With a large amount of furniture manufacturing companies in Vietnam, we have identified 5 that rank highly in the market in terms of quality and cost.
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Minh Duong Furniture Corp Located outside of Ho Chi Minh City in the province of Binh Duong, this company specialises in the production of indoor furniture, including living room furniture, dining sets, bedroom fittings and custom-made furniture.
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Tien Phu Interior Co Also located outside Ho Chi Minh City in the province of Đồng Nai, Tien Phu specialises in the production of couches and mattresses. They offer manufacturing in several styles and materials such as leather, felt and fabric.
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Dewberry Located in the Bình Dương province, outside of Ho Chi Minh City, Dewberry has two factories with over 800 employees. They offer over 30 furniture collections, which are created by home interior stylists based in Normandy, France.
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Woodnet Located in District 2 in Ho Chi Minh City, Woodnet, as the name suggests, specialises in wood furniture for the bedroom, dining room, living room and bathroom. They feature more than 130 collections, using carefully selected solid timbers and veneers.
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Excel Dekor Excel Dekor is another company that specialises in wooden furniture for living rooms, dining rooms, bedrooms and outdoor. They design, manufacture and export to both international markets and the domestic market.
Written By
OneLink Holdings team
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