Market Trends of Vietnam Home Furniture Industry
Rise in 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. Modular kitchen trends also lead 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
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.
Vietnam offers competitive labor costs compared to many other countries, including traditional manufacturing hubs like China. This cost advantage has attracted foreign investment and encouraged the establishment of furniture manufacturing facilities in Vietnam. Lower production costs enable Vietnamese manufacturers to offer competitive prices in the international market, making their products attractive to buyers worldwide. Vietnam has actively pursued and entered into various trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA). These agreements have reduced trade barriers and provided Vietnamese furniture exporters with preferential access to key markets, including the United States, Canada, Japan, and the European Union. The improved market access has stimulated furniture exports and created opportunities for market expansion.
