According to US media reports, orders for Vietnam's furniture manufacturing industry fell to the lowest level in 13 months in October, and the shutdown period for the Lunar New Year may be extended.
Some U.S. furniture importers said supply factories would be closed for the holiday, which began on Jan. 22. Exactly when it will end is uncertain, but some businesses think it could be longer than a month.
"Our main supply factories will be closed for about 10 days, which is certainly manageable for our operations," said Hana Hajar, vice president of operations and supply chain at furniture importer BDI.
"But we are concerned about other sub-suppliers who are expected to be out for longer," he continued. “We are following the situation very closely with the help of intermediaries. As of now, with some forward planning, we don’t expect any major delays. We expect mid-Q2 2023 The new bedroom series will arrive as promised."
Martin Furniture sources from multiple Vietnamese factories, making supply even less predictable.
“We work with a dozen different factories, each with different circumstances,” says Pat Hayes, vice president of brand imports. "I'm currently doing a rundown of the timelines they've come up with for factory closures. It looks like the big factories will be closed for two weeks, and the others are probably closed for the first week of January-February. It depends on how many orders they receive by December. .”
The vice president is not very worried. He believes that as long as the company plans well, it should not have much impact.
"There's really no impact on us because we're in close communication with the factory on their production plans. We've been looking at their shutdown plans and we've increased our orders to prepare for that period of time."
Several other importers said they had heard about the extended shutdown but were not confident enough to make forecasts. The consensus seems to be that the shutdown will be extended, though it's not too sure how long.
Some Vietnamese media issued ominous warnings about the uncertainty of the order. According to VnExpress, factories are preparing for the worst as orders from the US and Europe plummet. One factory has already laid off more than 1,100 workers.
The S&P Global Vietnam Manufacturing Index, which measures Vietnam's manufacturing output, recorded its lowest value in 13 months in October, meaning manufacturing orders fell to the lowest level.
"While signs of a return to growth in new orders and the waning impact of the COVID-19 pandemic mean manufacturers expect output to remain elevated over the coming year, concerns remain over weakening demand and consumption Investor confidence in the market also fell to its lowest point in a year."