You’ve heard of Vietnam, are aware of the nation’s flourishing Vietnam furniture market, and have been informed that their prices are reasonable. It’s possible that you’re even from the US, and you feel pressured to help China out. This is the question we’ll attempt to answer in this article, along with a step-by-step process and some incredibly useful advice for importers. Let’s move directly from theory to practice. You should be able to find out 5 Ways To Sourcing Furniture From Vietnam after reading this 10-minute article and be aware of where to look. Due to Q-Furniture’s local presence in Vietnam, we are happy to share five tips as we jump right into the more useful portion of our article.
Furniture Sourcing And Trading
With a focus on four key markets—the United States, England, Australia, and the Netherlands — Q-Furniture is a company that specializes in manufacturing, trading, and exporting concrete and wood furniture from Vietnam. After 11 years of formation and growth, we are able to provide importers, retailers, and trading companies from all over the world with a broad range of solutions of consistently high quality at reasonable prices. We assist you in following up on orders, managing daily sales activities and product development, checking and monitoring sample results, conducting in-process and final inspections, and ensuring the timely delivery of high-quality goods.
Some products are available at Q-Furniture such as
- Concrete Furniture
- Concrete Decorations
- Concrete Basins
- Concrete Planters
- Concrete & Wood Furniture Collection
We will make great strides with innovations and creation and establish ourselves as a leader in the production, distribution, and export of concrete furniture products thanks to our wealth of experience and highly qualified and enthusiastic team members. Q-Furniture will assist you in developing a long-term business and sustainable value when you choose to import goods from furniture from Vietnam
The Furniture Industry In Vietnam
When compared to the top producers in the world, the Vietnamese furniture industry has long proven to be a successful endeavor. Vietnam currently ranks second among Asian countries in terms of furniture exports. China, Germany, Poland, Italy, and Vietnam are the top sourcing furniture from Vietnam and are ranked in the top four and fifth-ranked furniture producers in the world, respectively.
The US-China trade wars have disrupted the supply chain and driven many interested investors away from China, which has benefited Vietnam greatly. Due to the tariff crisis, this has since been accelerated over the last two years. Furniture exports from Vietnam have increased at a rate of more than 18% compound annual growth rate (CAGR) in recent years.
The furniture industry in Vietnam is extremely diverse, ranging from small shops to fine custom-made wood furniture from Vietnam. Furniture is produced in Vietnam by companies like Dewberry, Man Wah, Minh Duong Furniture Corp, and Ashley Furniture, a multinational corporation that designs and sells ready-to-assemble furniture, wood appliances, and home-based wood fixtures.
Nearly 450 of Vietnam’s approximately 2300 furniture exporters—which number is still growing—invest in FDIC (FDI). All of these account for about 45% of Vietnam’s total furniture exports to other countries. The majority of Vietnam’s industry participants are globally dormant furniture manufacturers. Additionally, as ICT, technological advancements, and inventions continue to grow, many middle-sized businesses are expanding their market presence by securing new contracts in the Vietnam furniture sector and tapping into the burgeoning and promising markets in the US and Europe.
Vietnam’s Wood And Furniture Market
For the wood industry alone, the export turnover of wood and wooden furniture products in the first 5 months of 2022 reached US$ 7.15 billion—an increase of 6.9% over the same period in 2021. Forecast and export activityExports of wood and wood products in the first half of 2022 could achieve a growth rate of nearly 8%.
According to the Vietnam Wood and Forest Products Association, the export trend of wood and wood products is focusing on high-value-added items such as wooden sofa frames, living room, and dining room furniture, bedroom furniture, etc. These are all strong industries in Vietnam.
Furniture Can Be Sourced In Vietnam
As previously mentioned, thanks to abundant forest resources, furniture manufacturers in Vietnam are able to produce a wide variety of furniture, including wood furniture.
- Superior & Luxurious:
Most people look for a relaxing and aesthetically pleasing environment to enjoy with their loved ones after a long day. Customers choose high-end and luxurious furniture because it is frequently carefully planned and made by expert teams in terms of quality, durability, appearance, and comfort. Customers who place a high value on quality of life can be drawn in by carrying high-end lifestyle furniture made in Vietnam.
- Cheap & on a budget
Real estate agencies estimate that households typically spend between 10 and 20 percent of the price of their home on interior decorating, including furniture shopping. Therefore, affordable, economical, and practical furniture is increasingly valued as the top criterion by price-conscious home buyers and retail customers. You’ll be able to sell customers who are most concerned about price-consciousness high-quality, reasonably priced products by sourcing furniture made in Vietnam.
Wood Used To Make Vietnamese Furniture
The most popular types of wood used in Vietnam are tropical hardwoods. These woods have a dense core that manages heat and moisture very well, making them ideal for mid-range furniture. The wood in Vietnam has naturally evolved to withstand the country’s hot and humid climate.
It is a tropical hardwood that can be found in Vietnam and other tropical and subtropical areas of the world. Due to its durability and attractiveness, which includes a solid, strong appearance and light color, acacia is well-liked for a variety of reasons. It can grow quickly and you can plant a new tree as soon as one is cut down, making it one of the fastest growing woods and one of the most sustainably grown.
Its rapid growth makes it possible to produce it at a low cost in large quantities. Due to its density and use of many more expensive types of wood, acacia is frequently regarded as one of the best value woods.
Another common type of wood in Vietnam is known as rubberwood, which is regarded as one of the most useful and sustainable types of wood. Rubberwood, as its name implies, is derived from the same trees that yield latex and rubber, and it is only harvested after the tree has finished producing its intended amount of rubber. Medium-density tropical hardwood with a light color is rubberwood.
This can be stained to any color you like, from light to dark, thanks to its light color. Rubberwood and oak wood are so similar that rubberwood is frequently sold under the oak label. Although their density and colors are quite similar, rubberwood tends to have a straighter grain than oak, which is more circular.
Thin boards of wood are stacked on top of one another and joined with glue or resin to create plywoods. This results in a board that varies greatly in strength and quality depending on the type of wood used, the thickness of the sheets, and the number of times it is stacked.
Bamboo is one of the most sustainable materials to work with, which is why it is becoming more and more popular to use it to make furniture and other wooden goods. Bamboo can regrow after being cut down because it is grass, not a tree. Although bamboo behaves differently from most woods and can be made into boards, you frequently need to find a factory that specializes in working with bamboo. The most typical uses for it are as flooring and handicrafts.
Types of Wood Are Difficult To Find in Vietnam
When used to create furniture products with high durability, great aesthetic value, and distinctive scent, some precious and rare woods are compared to gold. However, overexploitation has rendered these woods all but extinct.
- Ngoc Am has the scientific name Cupressus funebris, which belongs to group 1A in the list of rare plants. This is a fragrant, coniferous woody plant that is classified by botanists in the eucalyptus family. Jade am wood is quite hard, smooth wood grain, brilliant yellow color, pleasant aroma, long-lasting fragrance. With high durability and aesthetics, jade wood is processed into interior products and is popular with many people.
- Frankincense: is known as the “wood of the gods”. Agarwood is listed in the list of group one of the rare and precious woods of Vietnam. It is a natural, rustic, sacred, and noble scent. Thanks to its special aroma, frankincense is used to make essential oils and perfumes.
- Skimmed wood: It has extremely high durability, soaked in mud, in water for many years still does not absorb water or rot, does not lose its scent, is put in the sun, and does not crack. When used for sculpture, sapwood has a beautiful color, good impact resistance, scratch resistance, and veins like flowing clouds, most of them have black veins.
Import Duties for Furniture from Vietnam
According to current regulations, furniture made of wood is not on the list of goods banned from import into Vietnam. Therefore, individuals and businesses can import this type of good. However, to know whether imported goods are subject to import tax, you first need to determine the HS code of the goods.
For goods under HS code 9403 when imported to Vietnam, they will have to pay import tax and value-added tax. The specific tax rates are as follows:
- Value-added tax (VAT) is 10%.
- The preferential import tax rate is 25%.
However, if goods are imported from countries that have signed a Free Trade Agreement with Vietnam and meet the conditions, they can receive a preferential import tax.
Import duties to the US
Your personal exemption allows you to purchase up to $1,600 worth of goods duty-free if they come from an IP. If the goods are from a CBI or Andean country, they can be purchased duty-free for up to $800. Any additional sum of goods, up to $1,000, will be subject to a flat rate (3%), of duty.
Import duties to the EU
According to the EVFTA Agreement, Vietnam commits to eliminating import taxes for 48.5% of tariff lines, equivalent to 64.5% of EU export turnover, as soon as the agreement comes into effect. Then, after 7 years, 91.8% of tariff lines, equivalent to 97.1% of export turnover from the EU, were eliminated from import tax by Vietnam. After 10 years, this level of elimination is 98.3% of tariff lines and 99.8% of EU export turnover, respectively. For about 1.7% of the remaining tariff lines in the EU, we apply the import tax elimination roadmap for more than 10 years or apply TRQ according to WTO commitments.
5 Ways To Sourcing Furniture From Vietnam
This is the question we’ll attempt to answer in this article, along with a step-by-step process and some incredibly useful advice for importers. Let’s move directly from theory to practice. You should find sourcing furniture from Vietnam after reading this 10-minute article and be aware of where to look. We are happy to begin our article’s more practical section with 5 tips.
1. Sourcing websites
Some websites are dedicated to Vietnam and its furniture industry, much like Alibaba is in China.
However, the selection and caliber of sourcing websites for Vietnam are still very lacking. Information is frequently sparse and difficult to read. The top Vietnamese supplier directory is still Alibaba.com (even though Alibaba is based in China). This could alter in the future, and we intend to quickly update this article to reflect any changes.
A list of websites for sourcing furniture from Vietnam is provided below.
- Alibaba: Alibaba’s Vietnamese portal, just for Vietnamese vendors.
- VietAz: Practical and simple-to-read platform with images, cost details, and a wide range of furniture producers.
- Vtown: Supposed to be a database of Japanese businesses operating in Vietnam as manufacturers. But it continues to keep a very good database of Vietnamese and other foreign manufacturers (including furniture manufacturers).
- Vietnamese Made: Not of a high caliber. Numerous suppliers from China or Europe also post.
Once more, the promotion aspect of the Vietnam market is still not fully developed, and the “tradeshows” scene is no exception. It’s a fantastic opportunity, though. It makes it more difficult for your rivals to source furniture from Vietnam and makes it simpler for you to stand out from the crowd.
Please see the list of intriguing trade shows for the furniture industry below.
3. HAWA Association
Another excellent tip we can give is to join the HAWA (Handicraft and Wood Industry Association of Ho Chi Minh City) association.
In 1991, HAWA was founded as a nonprofit organization and volunteer association. Currently, this association has more than 400 factories, manufacturers, and companies with production lines in Vietnam. Typically, the largest and most serious Vietnam furniture manufacturers are among its members.
4. Chamber of commerce
Vietnam is home to a number of international chambers of commerce (and often in Ho-Chi-Minh). Some of them are very active and can connect you with organizations, vendors, or even factories.
Contacting your country’s chamber of commerce is undoubtedly the first piece of advice. To be honest, though, response times are frequently slow (if there are any responses at all), and some chambers of commerce outright refuse to connect importers/buyers and factories.
The second, and perhaps more unexpected, piece of advice is to get in touch with the chambers of commerce, but this time for nations that have significant manufacturing operations in Vietnam. In fact, a large number of factories in the furniture industry are run by foreigners, with funding coming from Taiwan, Korea, Japan, Singapore, and China. A current list of factories in Vietnam with management or funding from these nations is typically kept by the respective chambers of commerce.
These chambers of commerce are typically happy and eager to connect you with their members. And if it’s your first time working with Vietnam, dealing with a foreign-owned factory might be less intimidating. The chambers of commerce of nations with significant manufacturing operations in Vietnam:
- Vietnam: Vietnam Chamber of Commerce and Industry
- Korea: Korea Chamber of Business in Vietnam
- Taiwan: The Council of Taiwanese Chambers of Commerce in Vietnam
- Japan: Japan Business Association in Vietnam
- Singapore: Singapore Business Group HCMC Chapter
5. Ring the bell
Particularly in the furniture industry, factories are frequently enormous and situated in sizable Industrial parks.
In light of this, our final piece of advice is to simply visit one of these industrial parks and ring the factory doorbell to tour their showroom. The words “woods” or “furniture” are frequently written on the front gate of factories that produce furniture. If you call one factory, someone might direct you to another factory in the same industrial park if you’re looking for a specific type of furniture.
You might lose the entire afternoon if it’s a total mess. Please accept our sincere apologies! Additionally, it might be one of your most fruitful afternoons because you might run into your future business partner in Vietnam and deal with him directly, without using any intermediaries or agents!
In Vietnam, Ho-Chi-Minh City typically has the largest furniture industrial parks. Even though this is by no means a complete list, we can already mention:
- Nam Tan Uyen Industrial Park
Surely one of the biggest industrial parks for furniture factories, with dozens of them.
Located around 2 hours away from Ho-Chi-Minh.
- Bien Hoa Industrial Zone 1 and 2
- Thuan Dao Industrial Park
- VSIP Binh Duong
Q&A Furniture In Vietnam: Factories, Manufacturers, And Sourcing
In this article, we answer the questions about factories, manufacturers, and sourcing manufacturing in Vietnam and why it has become one of Asia’s most important manufacturing hubs.
1. Do different brands of Vietnamese furniture have similar wood qualities?
Different brands will produce products with varying qualities due to different manufacturing techniques. The strength and hardiness of the wood, however, will be largely consistent across all brands because the woods used are the same by Vietnam furniture manufacturers.
2. Will the limitations on the use of natural resources influence the standard of Vietnamese wood furniture?
Furniture from Vietnam may become less available as a result of this, but the supply will only be reduced to a level that is more sustainable. Although the price may increase, the quality will not.
3. Why is Vietnam’s furniture industry so large?
Vietnam’s easy access to sustainable legal wood has encouraged businesses and factories to relocate there in order to benefit from it, creating many wood furniture from Vietnam. This implies that furniture can become more affordable and available to all homeowners and business owners.
4. What kind of wood is grown in Vietnam?
Rubber wood and tropical hardwoods are the two main types of wood grown in Vietnam for commercial purposes. Rubber wood is marketed as being environmentally friendly because it uses plantation trees that have already served a useful purpose. Rubber wood is a light-colored, medium-density wood. On the other hand, tropical hardwoods are tough and adapted to withstand hot, humid climates, making them ideal for most homes due to their hardiness.
5. Is Vietnamese native furniture superior to imported furniture?
The main advantage of ordering from Vietnam furniture manufacturers is having the ability to have furniture custom-made, and local furniture suppliers can match and rival the quality standards of larger corporations. The cost of purchasing furniture that is made to order can be higher.
6. Is there a difference in quality between Western and Vietnamese furniture?
Western businesses frequently regulate quality, so the same standards apply to all businesses. Since many businesses use softer, less durable wood to produce more furniture at a lower cost, the wood used can make the biggest difference in quality.
Market Growth Of The Furniture Industry In Vietnam
Vietnam is a significant base for furniture exports and has become a popular location to establish furniture factories. Vietnam now exports furniture to over 120 nations, with the United States, the United Kingdom, Canada, Australia, and Japan being the primary markets. Furniture from Vietnam is also shipped to China. A wide variety of furniture products are used by Vietnamese consumers, with wood furniture from Vietnam being the most popular. The indoor and outdoor Vietnam furniture market still thriving and is predicted to continue doing so in the years to come. In terms of the potential to increase its global market share, Vietnam’s furniture industry market has production advantages over other significant furniture exporters in the world.
The strength of Vietnam’s existing Free Trade Agreements (FTAs) and the ongoing trade negotiations are related to the country’s growth in furniture exports. These elements present fantastic opportunities for ardent producers of furniture and related wooden accessories who are always looking to sharpen their competitive edge and boost profits.