Vietnam Furniture Sourcing – Why You Should Consider it

Vietnam has traditionally been a country that has produced outdoor Furniture; however, it is rapidly moving to become a producer country of Indoor furniture.

This article is a review of the Furniture Industry in Vietnam and explains why you should consider Vietnam as a country to source Indoor Furniture

Vietnam Furniture Industry Review

USA Export Market

2011 figures show that the USA is the biggest importer of furniture, accounting for 18.8%

Vietnam’s major producers of indoor factories are now not accepting any new orders for products. And have been forced to turn down large orders with short delivery times from US partners.

As a result, other Vietnamese factories are rapidly gearing up to meet the excess demand from the US.

The reason for the increased US demand is twofold.

1. The excess stock held in the US in 2011 and 2012 is now exhausted, and as a result, there is a demand to replenish these stocks.

2. The improving health in the US economy –   In 2013, Sales rose 15% compared to 2012. And 2014 appears to be outshining 2013.

This will mean that there will be a far wider selection of manufacturers in Vietnam for you to choose from.

European Export Market

The province of Binh Dinh, which has traditionally produced Outdoor furniture for the European market, has, in recent years, experienced a sharp decline in orders.

The reasons for the decline in outdoor export orders are because:

1. European market demand has shifted from outdoor furniture to indoor furniture.

2. European consumer’s now preferred low to mid-priced items from planted forests as opposed to high-end products made from rare woods.

This has resulted in Vietnam furniture factories switching their focus from outdoor furniture to indoor furniture. Figures show that export turnover for Outdoor furniture in 2012 was $176million, down 18.6% from 2011, while export turnover for Indoor furniture in 2012 was $ 10 million up 7.3% from 2011.

Why choose Vietnam instead of China?

Vietnam is the second biggest furniture producer in Asia behind China.

Vietnamese Government Wooden Product Export policy focuses on developing its furniture industry so it can produce Indoor furniture. This is causing the industry to move from simpler, less skilled outdoor products to more skilled indoor furniture products.

There has been a change in Chinese Government policy with a focus on developing high-technology industries; this is at the expense of labour-intensive industries such as furniture manufacturing.

Why Choose Vietnam instead of other countries?

With world furniture production coming from low-income countries such as Vietnam, there is significant potential in the country’s furniture industry.

Vietnam has access to legally sustainable wood. The two kinds of wood legal in Vietnam are rubber wood and cajuput wood.

Vietnam has other advantages when compared to its close neighbours. Thailand and Malaysia have higher costs, whilst Indonesia still has some political issues.

High-income countries only account for 45% of global furniture production. These countries include Germany, the USA, the UK, Canada and Italy. However, since the beginning of the economic crisis, Southern European Countries and Canada have seen sharp declines in furniture production.

You can now find Vietnam Furniture Products on Goodada.

You can now search for Furniture Products and Sellers from Vietnam through the Vietnamese Furniture Association BIFA.

Goodada’s Vietnam Quality Control Inspections will allow you to have any Seller and/ or Product independently inspected. To learn more, please visit our Vietnam Furniture Inspection Services page.

Goodada’s partners offer excellent Freight Insurance Coverage for Vietnam. Please visit our Freight Insurance page