According to a recent report from the Center for Industrial Studies (CSIL), Vietnam secured sixth place in the world’s furniture production rankings last year, climbing from 13th place in 2014. China, the US, Italy, Germany, and India still hold the top five positions, with China and the US maintaining their leading roles for over a decade.
CSIL, a research and consulting organization based in Milan, Italy, shared this information during the “Wood and Furniture Forum” at Hawa Expo 2024 in Ho Chi Minh City.
Giovana Castellina, a senior partner at the Center for Industrial Studies, acknowledged Vietnam’s substantial growth in the furniture industry over the past decade.
Initially recognized for outdoor furniture, Vietnam has expanded into interior furniture production, with 25% of its products being upholstered furniture, contributing to 10% of the upholstered furniture output in the Asia-Pacific region.
Exports play a crucial role in Vietnam’s success, constituting 93% of total production, according to Giovana. The Department of Forestry reports that furniture accounts for 82.9% ($8.4 billion) of the country’s wood and wood product exports. Businesses are experiencing high demand, with order books full until at least April or May, as reported by the Handicrafts and Wood Industry Association of HCMC.
However, Giovana cautioned about a potentially subdued global furniture market in the current year, anticipating a rebound in 2025. She acknowledged the difficulty in forecasting, considering ongoing geopolitical conflicts.
CSIL pointed out long-term challenges for Vietnam’s furniture industry, including a narrow customer base, limited design capabilities, and trade fraud. To navigate these challenges, the suggestion is to diversify exports beyond the U.S., which currently accounts for more than 50% of Vietnam’s exports.
Giovana emphasized that developing a strong brand and unique designs early on is crucial for raising prices and accessing high-end customers. Additionally, industry players need to stay ahead of global regulatory changes, such as the Carbon Border Adjustment Mechanism, which will take effect in 2027.
Nguyen Liem, chairman of the Binh Duong Furniture Association, highlighted the ongoing battle against trade fraud. Collaborating with local authorities, customs, tax agencies, and economic security agencies, the industry is actively working to combat issues like fake origin labeling, particularly in Binh Duong, which contributes over 40% to the country’s wood and wood product exports.
In 2021, a research from Furniture Today revealed that Vietnam shipped over $7.4 billion in furniture to the United States in 2020, up 31% from the $5.7 billion in 2019. The figure shows Vietnam has just overtaken China as the US’ leading exporter. The East Asian country shipped $7.33 billion to the US in the same 12-month period, down 25% from 2019