A report from the Italian Economic and Industrial Research Center (CSIL) shows that Vietnam's furniture production in 2023 will rank sixth in the world.
A representative of CSIL said at the HawaExpo 2024 International Furniture Export Expo in Ho Chi Minh City that Vietnam's ranking has risen from 13th in 2014 to 6th, with "the growth is shocking." The top five exporting countries are China, the United States, Italy, Germany and India. For the past decade or so, China and the United States have been the top two.
CSIL senior partner Giovana Castellina said Vietnam's furniture industry has grown faster than any other country in the past 10 years.
"Initially, outdoor furniture was mainly produced here (Vietnam), but now its indoor furniture production has also developed strongly. 25% of the products produced in the country are upholstered furniture, accounting for 10% of the Asia-Pacific region's upholstered furniture production. Exports are this The driving force behind the growth, accounting for 93% of total production."
Statistics from the Ministry of Agriculture and Rural Development of Vietnam show that the export volume of Vietnam's wood and furniture industry reached US$14.39 billion last year, a year-on-year decrease of 15.8%. This year, the industry aims to reach $15 billion in exports.
In the first two months of 2024, Vietnam's timber and wooden furniture exports were US$2.4 billion, a year-on-year increase of nearly 44%. According to the Ho Chi Minh City Handicraft and Wood Industry Association, orders from companies are full until at least April and May.
Tran Quang Bao, director of the Forestry Department of the Ministry of Agriculture and Rural Development of Vietnam, said that even during the COVID-19 epidemic, exports of wood and wooden furniture have maintained double-digit growth. He is also confident about exports in 2024.
But Castellina expects geopolitical tensions, conflicts and supply chain disruptions to affect the furniture industry's growth in 2024, with furniture exports expected to be flat from 2023 and rebound in 2025.
She suggested that Vietnamese companies diversify their markets rather than a single market to reduce risks, noting that since three-quarters of Vietnamese furniture is exported to the U.S. market, exports will drop sharply when demand in the U.S. market decreases.