VietNamNet Bridge - With stable growth rate of 8 percent per year in the last few years, the domestic wooden furniture market is a magnet for foreign brands.

The wooden furniture market grows by 8 percent per annum

$4 billion market

Nearly 20 Vietnamese woodwork exporters attended Vifa Home 2018 recently, a woodwork and interior decoration trade fair. Well-known names included Scansia Pacific, Duc Loi, Nguyen Thanh, Royal Furniture, Square Home and Woac.

Huynh Van Hanh, deputy chair of HAWA (Handicraft and Wood Industry Association of HCMC), said that Vietnamese manufacturers, after many years of struggling to conquer foreign markets, have returned to the home market.

The stable growth rate of 8 percent of the wooden furniture market is attractive to manufacturers. Market revenue was $3.2 billion in 2017 and is expected to reach $4 billion this year.

The high growth of the construction sector, which buys 40 percent of total woodwork output, will keep the wooden furniture market hot. 

In recent years, the government has been choosing more domestic suppliers for public procurement projects.

Great opportunities for the woodwork industry are foreseeable in the global ‘live green’ movement. Scientists point out that using wood instead of cement, steel and plastics is a good environmental solution.

Great opportunities for the woodwork industry are foreseeable in the global ‘live green’ movement. Scientists point out that using wood instead of cement, steel and plastics is a good environmental solution.

A Nielsen survey found that more than 80 percent of Vietnamese are willing to pay more to buy products that have a positive impact on environment and society. 

Eighty percent of consumers show fear of long-term ill effects that artificial materials may have on human health, while 79 percent of people are willing to pay more money to avoid products which contain unwanted materials.

Hanh cited a report from the customs agencies as showing that Vietnam imports about $70 million worth of woodworks each year. 

Vietnamese manufacturers still dominate the home market. However, analysts say that foreign brands have been eyeing the local market.

Inter Ikea Holding, which manages the Ikea brand, last year stated South America and Southeast Asia are its targeted markets. In Southeast Asia, it plans to come to Vietnam and the Philippines after it sets up shops in Malaysia and Thailand.

An analyst said that European brands are optimistic about Vietnam’s market, encouraged by the prediction that the demand for high-end products is on the rise, thanks to the improved incomes of Vietnamese.

Most recently, a trade promotion program was organized by the Italian Commercial Affair Division in HCMC with the participation of seven well-known brands Badari Lighting, Cantori, Diemme Cucine, Formitalia, Officina Luce, Sicis and Versace Home.

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