Market Trends of Vietnam Home Furniture Industry
This section covers the major market trends shaping the Vietnam Home Furniture Market according to our research experts:
Kitchen Furniture Segment
The kitchen furniture segment includes fitted kitchen units and other wooden furniture. The kitchen furniture segment is driven by increasing urbanization and remodeling of residential kitchens. Kitchen furniture and fixtures are gaining momentum in terms of investments, with consistent growth in the hotel industry, which thrives on the rise in travel and tourism.
Modular kitchen trends are also leading to higher investments in kitchen furniture in the Vietnamese home furniture market. Hoi An, in North Vietnam, is famous for offering kitchen and sophisticated hand-made kitchenware products made of bamboo or coconuts such as plate mats, wine holders, coconut bowls, and porcelain spoons.
Rise in Furniture Exports From Vietnam
Timber and furniture have become the sixth-largest export category in Vietnam, accounting for 6% of the world market share. According to the Ministry of Industry and Trade’s Import and Export Department of Vietnam, in 2020, starting seven months, the value of the wood industry rose to around USD 6.1 billion, and the majority came from the export of wooden furniture, which accounted for USD 4.4 billion(72%), up 8.5 % Y-o-Y. In June 2020, products were exported to the United States (up by 43.1 % to USD 590.9 million), China (15.6 % to USD 88.3 million), Canada (19.5 % to USD 18.8 million), and Australia (28.8 % to USD 15.3 million). The United States was the top market for Vietnam’s wood and wood product.
The industry’s strong export growth is attributed to Vietnam’s existing free trade agreements (FTAs) and ongoing trade negotiations, which provide opportunities for manufacturers of furniture and other wooden products to enhance competitiveness and boost sales.
The main challenge for the manufacturers of furniture and other wooden products is the shortage of raw materials amid the closure of natural forests and the other measures being implemented by various countries to protect their timber resources.
