Foreign enterprises are actively expanding their presence in Vietnam’s burgeoning furniture market. The country’s advantageous trade conditions, abundant material resources, and substantial growth potential have captured the attention of global players seeking to invest in the furniture manufacturing industry.
Market research firm Mordor Intelligence highlights that Vietnam has become a promising hub for furniture manufacturing, attributed to lower tariffs, a convenient trading environment, efficient logistics services, and a diverse range of materials for furniture production.
Central Retail, a prominent retail corporation from Thailand, has introduced its subsidiary brand “Come Home” as part of a new furniture business initiative in Ho Chi Minh City. This strategic move is aligned with the company’s substantial $1-billion investment strategy, which targets the thriving interior decor market in Vietnam.
Projected revenue figures for the domestic market illustrate its robust growth trajectory. In 2022, the market generated approximately $1.25 billion in revenue, a figure anticipated to exceed $1.4 billion in 2023. Forecasts also predict an annual growth rate of nearly 10% within the 2023-2027 timeframe.
Despite global economic challenges and declining purchasing power, Vietnam’s interior decor market continues to experience robust demand. This surge can be attributed to the increasing popularity of modern aesthetics and personalized home environments.
Denmark’s JYSK, recognized for its diverse range of Scandinavian-style furniture and home decor offerings, has made strategic strides in the Vietnamese market. With a collection of over 1,000 products including furniture, bedding, lighting, and outdoor essentials, JYSK has been introducing the essence of Nordic living to Vietnamese consumers since 2015. Notably, the company recently inaugurated a new center in Hanoi in late June.
Prominent furniture brands, spanning mid-range to high-end segments, have established their presence in Vietnam. Hoa Phat Furniture JSC, a subsidiary of Hoa Phat Group, undertook a strategic brand repositioning initiative in early 2022. Under its new identity “The One Furniture,” the company introduced a refreshed slogan and visual identity, marking nearly three decades of growth.
Market analysis by India-based Mordor Intelligence forecasts substantial growth in the Vietnamese furniture market. The market size is projected to escalate from $1.4 billion in 2023 to $1.82 billion by 2028, reflecting a compound annual growth rate (CAGR) of 5.33% during the period from 2023 to 2028. The report underlines the steady growth of Vietnam’s furniture market in recent years, with Vietnamese-made furniture exports surging and poised to surpass those of numerous global economies.
Vietnam’s furniture exports reach over 120 countries, including key markets such as the United States, the United Kingdom, Canada, Australia, and Japan. Statista forecasts that the Vietnamese furniture market revenue will reach $1.34 billion in 2023, with a projected CAGR of 9.06% in the period from 2023 to 2028.
As foreign firms expand their investments and contribute to the sector’s growth, Vietnam’s furniture market continues to shine on the global stage.