Vietnam — The New Destination for Upholstery and Furniture Manufacturing

Introduction

HO CHI MINH CITY, Vietnam — one of the main areas of growth and opportunities for furniture manufacturers here is the upholstery industry. According to the latest research by CSIL Furniture Industry in March 2017, Vietnam is among the most dynamic countries regarding furniture manufacturing growth in the world. Upholstery manufacture in Vietnam has been continually improving since the dawn of the country when people started to sew their furnishings. In the present day, this Southeast Asian country has become one of the top upholstery manufacturing markets in the world, and there are many reasons for this phenomenon.

A Deeply-rooted Tradition

One of the reasons why Vietnam is such a popular manufacturing destination is the high level of skilled labor available. The country has a long history of textile production, so there is a strong tradition of sewing and handcrafting. Furniture factories in Vietnam can draw on the experience of the previous furniture manufacturers, who have been in the business for many generations. Due to a large population of experienced craftsmen who are well-versed in upholstery techniques, suppliers can produce high-quality furniture quickly and effectively.

Low Cost

Another key advantage of the Vietnamese export products is the inexpensive labor and raw materials. With over 90 million residents and a robust economic development over recent years (Gross domestic product will likely grow as much as 7% this year, beating the government’s 6%-6.5% target, Nguyen Thi Huong, head of Vietnam’s General Statistics Office stated), Vietnam is a rapidly growing manufacturer and exporter of furniture and home decorations. With a large pool of skilled workers and abundant natural resources, the cost of raw materials and labor is low compared to other countries in the region. The opportunity for cost saving lures many international retailers to choose furniture wholesalers in Vietnam over their regional competitors. Many multinational furniture companies such as Theodore Alexander, Jonathan Charles, Mitchell Gold & Bob Williams, and Ashley Furniture manufacture their products in Vietnam.

Uncompromised Quality

Vietnam has a longstanding reputation for producing high-end furniture products. In the last 20 years, the country has seen an enormous expansion in the furniture industry, making it one of the biggest upholstery and furniture exporters globally. In 2020, Vietnam replaced China as the largest exporter of furniture to the U.S, which now receives more than three-fourths of the total Vietnamese furniture exports.

Recent demand metrics for Vietnamese craftsmanship say it all. According to a recent study from George Mason University, seat and furniture exports in seats contributed to over 90% of Vietnamese total furniture exports every year from 2009 – 2019. These numbers were trending upward for ten consecutive years, showing stable growth and strong market demand. Upholstered and non-upholstered seats make up most of the exports, along with wooden, office, kitchen, and bedroom furniture.

Carefully Hand Crafting an Abercrombie Chair Frame (Source: Allingham)

Favorable Economic Conditions

Vietnam is the largest exporter of furniture in Southeast Asia, the second largest furniture exporter in the Asia-Pacific region behind China, and the fifth largest exporter in the world. Vietnam has become an attractive destination for furniture sourcing and the favored manufacturing hub for South East Asia, attracting regional and international investments. In one of the most dramatic changes in recent history in furniture import, Vietnam has surpassed China as the largest exporter of finished goods to the U.S. market. With an output value of $7.5 million per month, it is considered one of the three largest American furniture manufacturers in Vietnam. Although upholstery is still one of the largest categories that China produces, parts of the production are shifting into Vietnam because of the U.S-China trade war tariffs imposed on nearly all types of household furniture, including upholstered seats.

Conclusion

The Vietnamese furniture industry has attracted an array of factories and companies producing various types of furniture products. Thanks to a natural abundance of natural resources, low cost of living, and a large pool of skilled workers, the country has become one of the largest manufacturing and exporting destinations of furniture and upholstery globally.

If you are looking for a reliable manufacturing partner in Vietnam, Allingham Home is here to help. From receiving exclusivity in your part of the world to helping you test the waters with a low minimum on a new range, our team is ready to assist you through each stage of the production process. Please contact us today.

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