Report Overview

Vietnam Furniture Market - Industry Trends & Forecast Report, 2029

Vietnam furniture market size was estimated at USD 1.402 billion in 2022. During the forecast period between 2023 and 2029, the size of Vietnam furniture market is projected to grow at a CAGR of 4.54% reaching a value of USD 1.83 billion by 2029. Major growth drivers for the Vietnam furniture market include rising construction of houses & apartments and rapid urbanization. Notably, Vietnam has solidified its reputation as a premier furniture manufacturing hub, underscored by its pivot towards exports. Spanning across 120 countries, its export reach encompasses key markets, such as the United States, United Kingdom, Canada, Australia, and Japan. The versatility of Vietnamese furniture, particularly wooden pieces, strikes a chord with discerning consumers. The potential for growth in both indoor and outdoor segments of the local furniture industry is set to increase. Capitalizing on unique production advantages, Vietnam's furniture industry is strategically positioned to enhance its global market presence, demonstrating remarkable potential for sustained growth. Also, within the ever-evolving landscape of the Vietnamese furniture industry, a dynamic trajectory has emerged that positions the nation as a formidable contender among global producers. This ascent to prominence is highlighted by Vietnam's fifth-ranking worldwide and second-ranking in Asia within the industry. Parallel to esteemed peers like China, Germany, Poland, and Italy, Vietnam's prowess as a vital furniture exporter becomes evident. This growth trend is closely tied to the complicated interactions between the US and China regarding trade. As a result, investors are now looking more at the Vietnamese market. The significant change, triggered by the complexities of tariffs, has resulted in a remarkable 18% CAGR for furniture exports. In this scenario, the industry features a lively community of 2300 furniture exporters, with a notable 450 engaging in Foreign Direct Investment (FDI). Leveraging technological progress has driven Vietnam's rise in the worldwide furniture manufacturing landscape, exemplified by Wanek Furniture's move from China to Vietnam, showcasing the tangible proof of this upward trend

Vietnam Furniture Market – Overview

The Vietnam furniture market pertains to the production, consumption, and export of furniture products within the country's boundaries. This market encompasses various categories of furniture, from indoor to outdoor, made of different materials, and catering to diverse consumer preferences. It plays a pivotal role in the economy, contributing significantly to trade and employment. The Handicraft and Wood Industry Association of Ho Chi Minh City (Hawa) reported that Vietnam's furniture consumption reached approximately USD 4 billion in 2018, with exports achieving a record USD 8.9 billion, a 15.6% increase from the previous year. Foreign companies accounted for 44% of timber and product exports, while domestic enterprises comprised 55%. Wood product exports from furniture factories contributed 47% to the overall wood industry export value, growing at an annual rate of 10%. The furniture industry's robust growth has driven substantial gains in key markets, signifying opportunities for both local and foreign enterprises. This underscores the sector's strong development and potential for domestic expansion.

Vietnam Furniture Market

Growth Drivers

Increasing Disposable Income of Consumers

As consumers in Vietnam experience an increase in disposable income, their purchasing capacity for non-essential goods like furniture expands. This newfound financial flexibility allows them to invest in upgrading their living spaces with better quality and more diverse furniture options. As a result, the demand for home furnishings, office setups, and hospitality furniture experiences an upswing. This consumer-driven trend not only propels the domestic furniture industry but also positions Vietnam as an attractive market for furniture manufacturers and retailers, fostering growth and innovation within the sector.

Restraints

High Penetration of Unorganized Sector

The prevalence of a substantial unorganized sector in the Vietnam furniture market poses challenges due to factors like inconsistent quality, lack of standardized practices, and limited consumer trust. This fragmentation can hinder market growth by creating an environment where consumers might be uncertain about the products they're purchasing. Additionally, the unorganized sector might struggle to keep up with evolving consumer preferences and international standards, thereby restraining the overall development and competitiveness of the organized furniture market.

Impact of COVID-19 on Vietnam Furniture Market

COVID-19 pandemic adversely affected the Vietnam furniture market. Supply chain disruptions, decreased manufacturing capabilities, and reduced consumer spending posed challenges. Physical store closures led to a shift towards online shopping, altering consumer habits. Moreover, global economic uncertainty affected export demand. Despite initial setbacks, the industry displayed resilience by adapting to remote work trends, embracing e-commerce, and implementing safety measures. The pandemic underscored the importance of agility, innovation, and diversified distribution channels for post-pandemic recovery, accelerating the industry's digital transformation.

Vietnam Furniture Market

Segmental Coverage

Vietnam Furniture Market – By Material

By material, the Vietnam furniture market is divided into Wood, Metal, and Plastic segments. The wood segment holds the highest share in the Vietnam furniture market by material during the forecast period. It aligns with cultural preferences and craftsmanship, showcasing durability and aesthetic appeal. Abundant forest resources in Vietnam make wood production cost-effective. Local artisans' expertise in crafting intricate pieces contributes to its popularity. Additionally, wood's sustainable and eco-friendly image resonates with modern consumer values, further boosting its prominence in the market.

Vietnam Furniture Market – By Application

Based on application, the Vietnam furniture market is segmented as Home Furniture, Office Furniture, and Hospitality Furniture segments. The home furniture segment dominates the Vietnam furniture market by application due to the essential role that home furnishings play in people's lives. With increasing urbanization, more individuals are investing in comfortable and aesthetically pleasing living spaces. Also, the rising trend of remote work and spending more time at home due to the pandemic has driven demand for home office setups and improved living environments. As a result, the home furniture segment experiences high demand and holds the highest market share, reflecting the significance of creating inviting and functional home spaces.

Vietnam Furniture Market – By Distribution Channel

Based on distribution channel, the Vietnam furniture market is divided into Supermarkets & Hypermarkets, Specialty Stores, and Online segments. The specialty stores segment holds the highest market share by distribution channel due to its focused and tailored approach. Specialty stores cater exclusively to furniture, offering a wide range of options and expertise that attract consumers seeking specific styles, quality, or design elements. This dedicated focus and personalized service enhance the overall shopping experience. Customers value the in-depth knowledge and assistance provided by these stores, fostering trust and loyalty. As a result, the specialty stores segment garners a significant share as consumers prioritize a curated selection, expert advice, and a comprehensive understanding of furniture offerings, aligning with their preferences and requirements.

Competitive Landscape

Major players operating in the Vietnam furniture market include Godrej and Boyce Manufacturing Company Limited, Nilkamal Limited, Featherlite Office Systems Pvt Ltd, IKEA Private Limited, Durian Industries Limited, Forte Furniture Products Private Limited, and Haworth Pvt Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - Danish furniture brand JYSK recently expanded to Hanoi, Vietnam. Alongside JYSK, other foreign furniture brands are entering the Vietnamese market. Thailand's Central Retail introduced "Come Home," a furniture business initiative, in Ho Chi Minh City. The move aligns with a 1-billion-USD investment strategy, focusing on Vietnam's growing interior decor market, as reported by Vietnam Plus.

Scope of the Report

By Material

• Wood

• Metal

• Plastic

By Application

• Home Furniture

• Office Furniture

• Hospitality Furniture

By Distribution Channel

• Supermarkets & Hypermarkets

• Specialty Stores

• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Furniture Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Expanding Online Sales of Furniture
         2. Increasing Disposable Income of Consumers
      2. Restraints
         1. High penetration of unorganized sector
      3.  Opportunities
         1. Advancements in technology
      4. Challenges
         1. Impact on supply chain due to COVID-19
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Vietnam Furniture Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Material
         1. Wood
         2. Metal
         3. Plastic
         4. Others
      2. By Application
         1. Home Furniture
         2. Office Furniture
         3. Hospitality Furniture
         4. Others
      3. By Distribution Channel
         1. Supermarkets & Hypermarkets
         2. Specialty Stores
         3. Online
         4. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Furniture Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Vietnam Furniture Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Godrej and Boyce Manufacturing Company Limited
   2. Nilkamal Limited
   3. Featherlite Office Systems Pvt. Ltd
   4. IKEA Private Limited
   5. Durian Industries Limited
   6. Forte Furniture Products Private Limited
   7. Haworth Pvt Ltd
   8. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.       Qualitative Research
      1.   Primary & Secondary Research
   2.       Quantitative Research
   3.       Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
   4.       Breakdown of Primary Research Respondents, By Region
   5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Vietnam Furniture Segmentation                 

Figure 2       Vietnam Furniture Market Value Chain Analysis                

Figure 3       Company Market Share Analysis, 2022         

Figure 4       Vietnam Furniture Market Size, By Value (USD Million), 2019–2029              

Figure 5       Vietnam Furniture Market Share, By Material, By Value, 2019–2029              

Figure 6       Vietnam Furniture Market Share, By Application, By Value, 2019–2029         

Figure 7       Vietnam Furniture Market Share, By Distribution Channel, By Value, 2019–2029                  

List of Tables

Table 1        Vietnam Furniture Market Size, By Value (USD Million), 2019–2029     

Table 2        Vietnam Furniture Market Size, By Material, By Value, 2019–2029       

Table 3        Vietnam Furniture Market Size, By Application, By Value, 2019–2029  

Table 4        Vietnam Furniture Market Size, By Distribution Channel, By Value, 2019–2029

Table 5        Godrej and Boyce Manufacturing Company Limited Company Overview

Table 6        Godrej and Boyce Manufacturing Company Limited Financial Overview

Table 7        Nilkamal Limited Company Overview

Table 8        Nilkamal Limited Financial Overview

Table 9        Featherlite Office Systems Pvt Ltd Company Overview

Table 10      Featherlite Office Systems Pvt Ltd Financial Overview

Table 11      IKEA Private Limited Company Overview

Table 12      IKEA Private Limited Financial Overview

Table 13      Durian Industries Limited Company Overview

Table 14      Durian Industries Limited Financial Overview

Table 15      Forte Furniture Products Private Limited Company Overview

Table 16      Forte Furniture Products Private Limited Financial Overview

Table 17      Haworth Pvt Ltd Company Overview

Table 18      Haworth Pvt Ltd Financial Overview