Vietnam’s suppliers of indoor & outdoor furniture are expecting robust export sales to climb up in 2011 by utilizing their easy access to sustainable forests while keeping prices unchanged.
This is according to the Vietnam Sourcing Report: Indoor & Outdoor Furniture, produced by the non-profit Kearny Alliance with the support of Global Sources.
The Report, which covers more than 100 best-sellers of living room and bedroom furniture, and kitchen and garden sets, reveals that most of the suppliers anticipate overseas sales to grow by at least 10 percent in the coming months. Among 35 companies interviewed for the Report, fifty percent of them plan to keep export quote the same to reach their sales target set.
“Vietnam wooden and bamboo furniture suppliers enjoy notable advantages of various eco-friendly materials such as wood, bamboo, seagrass, fern and water hyacinth obtained from forests and plantations throughout the country to gain more competitiveness against China-based manufacturers,” said Khiem Vu, manager of The Kearny Alliance’s Export Assistance Program.
“Our report survey shows the sector tends to focus on releasing more low-end and midrange lines, which depict time-proof designs of rattan, bamboo and inexpensive types of wood or mix of them. While 50 percent of the featured suppliers are keeping the prices the same, the rest will raise them within 5 percent to attract more orders.”
Survey results outline target export markets, product and price trends, and capacity
In addition to industry overview and prices forecasts, the Report offers survey results from featured suppliers. High-level results show:
• 45 percent will target the Asia-Pacific market; 35 percent will focus the US;
• 45 percent plan to develop models with more decorative elements and designs;
• 75 percent expect to increase sales by 10 percent; and
• 45 percent consider the rising cost of labor as the most critical concern facing the industry, which result in price hike.
Total featured suppliers can produce up to 422,000 pieces a month. Product prices range from $4 for a simply-designed dining or kitchen item up to more than $200 for a high-scale bedroom set.
Report presents local trade associations that help facilitate buyer sourcing
“Buyers will see in the Report details of three prestigious trade organizations and handicraft associations that facilitate business interaction between local suppliers and overseas buyers,” Khiem said.
One featured organization, the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), has more than 359 export-oriented supplier members. HAWA’s chairman, Nguyen Chien Thang, said: “Our 350 export-oriented supplier members, some of who are featured in this Report, manufacture a variety of products, ranging from indoor and outdoor furniture to construction supplies. Buyers can find our members in the Vietnam International Furniture & Home Accessories trade show every March.
“We are ready to assist buyers select appropriate suppliers that match their budgetary and logistic requirements. We can also facilitate factory tours to verify manufacturing capabilities.”
Sourcing Reports for Vietnam, India, Cambodia, the Philippines and Indonesia
The Vietnam Sourcing Report: Indoor & Outdoor Furniture is one of a series of emerging market Sourcing Reports.
Other Sourcing Reports available online are:
• Basketware, Building Materials, Bamboo & Rattanware, Wooden & Bamboo Furniture, Kitchenware, Bags, Baby & Children’s Toys & Garments, Footwear, Ceramic & Porcelain, Garments, Home Decor, Fashion Accessories, Lawn & Garden, Lacquerware and Indoor & Outdoor Furniture
• Ceramics, Craft & Promotional Gifts, Glass & Metal Tableware, Fashion Accessories and Garments
• Fashion Bags; Silk Fashion Accessories
• Christmas Decorations, Home & Garden Decor, Fashion Jewelry, and Indoor & Outdoor Furniture
• Silver Jewelry, Rattan Furniture, Leather Products, Home Décor, Indoor & Outdoor Furniture and Footwear
• Indoor & Outdoor Furniture
About The Kearny Alliance
The Kearny Alliance (kearnyalliance.org), a US nonprofit 501© (3) foundation, partners with other international organizations to further its mission of ‘Aid through Trade’, to advance international development and poverty alleviation through trade-related business, education, training and applied research.
Key programmatic areas include:
• Livelihood development at the grassroots level: Through the social enterprise Export Service Centre in Indonesia and Cambodia, the Kearny Alliance assists small producers who do not have the capacity to export direct to participate in the global economy. It estimates that in 2009 it created more than 3,800 jobs.
• Job creation for small & medium producers: Through the Developing Country Export Assistance Program, the Kearny Alliance connects smaller exporters in developing Asia with buyers worldwide. Surveys of beneficiaries show that suppliers have received $772,000 in export orders, and they expect more than $5,500, 000 to develop in the next 12 months.
• Education & skills development: The Kearny Alliance offers stipend support for students from Myanmar, Cambodia, Vietnam and mainland China to study in Hong Kong and the US. The dozens of Kearny Alliance Scholars receive internships and on-the-job training in export-related companies and organizations in 10 countries.
• Trade policy research: One major initiative is The Future of US China Trade .Com, an online center for data, analysis, and insightful discussion on U.S. - China trade offering Forum Discussions, News & Analysis, Facts & Figures, Discussion Outcomes, Book reviews and Meet the Experts. This was developed from The Kearny Alliance – Arizona State University forums on China, trade and the world economic order high-level series of interlinked meetings – held in Phoenix and Beijing which explored potential solutions to issues and challenges of mutual benefit to China-US trade relations.