Foreign firms expand investment into Vietnamese furniture market

Lower tariffs, easy trading environment, convenient logistic services, and a wide range of materials for manufacturing furniture make Vietnam a promising hub of furniture manufacturing, according to market research company Mordor Intelligence.

Tan Vu Terminal in Hai Phong City. Photo by VnExpress/Giang Huy

Thailand’s retail corporation Central Retail has launched its subsidiary Come Home brand – a new furniture business initiative, in Ho Chi Minh City.

Come Home is set to play a role as a highlight in the company’s $1-billion investment strategy, targeting Vietnam’s thriving interior decor market.

According to Central Retail, the domestic market’s revenue in 2022 amounted to approximately $1.25 billion. The figure is projected to surpass $1.4 billion in 2023.

It expects an estimated annual growth rate of nearly 10% for the 2023-2027 period.

Amid the backdrop of global economic depression and waning purchasing power, Vietnam’s interior decor market is continuing to witness strong demand, which is propelled by an upswing in modern aesthetics and personalised home environments.

Other players in the furniture industry are making strategic moves in the Vietnamese market.

Denmark’s JYSK, a modern retail space offering a wide range of Scandinavian-style furniture and home decor products, opened a new centre in Hanoi in late June.

With over 1,000 products to offer, including furniture, bedding, lighting, and outdoor essentials, the JYSK has been bringing the essence of Nordic living closer to Vietnamese consumers since 2015.

Trang Le, a marketing consultant from HCMC, revealed a list of prominent furniture brands, ranging from mid-range to high-end.

Capping off nearly three decades of growth, Hoa Phat Furniture JSC, a subsidiary of steelmaker Hoa Phat Group, embarked on a strategic brand repositioning initiative at the beginning of 2022.

Under its new moniker, The One Furniture, the company unveiled an invigorated slogan and a fresh visual identity.

According to a recent report of India-based Mordor Intelligence, the Vietnam furniture market size is expected to grow from $1.4 billion in 2023 to $1.82 billion by 2028, at a compound annual growth rate (CAGR) of 5.33% during the 2023-2028 period.

Mordor Intelligence said the market for furniture in Vietnam has been steadily growing in recent years. The export volume for Vietnamese-made furniture has been rising and is expected to surpass many economies across the globe.

Furniture from Vietnam is exported to over 120 countries, including main markets such as the U.S., the U.K., Canada, Australia, and Japan.

According to Statista, revenue in the Vietnamese furniture market is forecast to hit $1.34 billion in 2023, with a CAGR of 9.06% in the 2023 – 2028 period.

Source: VNA

VIET NAM INTERNATIONAL SOURCING 2024, SECC - Ho Chi Minh City, June 06 - 08
Register Now