Vietnam is now becoming one of the brightest star in the wood-based furniture production and exports for the world. VietnamÕs wood processing industry, after a development and improvement stage, has built a strong foundation of production capacity, innovation in technology and machines, gradually improving business administration, learning about product standards, improving design, and flexibly producing according to customer requirements. With strong government support and progress in environmental legislation, the industry is ready to go further. By September 2019, Vietnam has over 5,500 enterprises, 340 villages producing and trading wood and forest products. Among those, 2,372 enterprises export timber, wooden products & non-timber forest products.
Key Market Trends
Bedroom Furniture is Driving the Market
Bedroom furniture includes bed, bedside table, chest of drawers, wall-mounted shelves, kids beds, and many more. A key driver fuelling the growth of the market is the rising standard of living, which is leading to the increased introduction of premium products. With an increase in disposable income, the consumers' spending capacity and their expenditure on luxury goods and services are increasing. Economic growth and rising individual household incomes coupled with the increasing number of independent dwellings have driven consumers to spend on premium bedroom furnishing products. As rooms are getting smaller, consumers are increasingly looking for furniture that is compact and easily movable to allow for efficient use of the available space. Thus, the demand for bedroom furniture is expected to significantly rise during the forecast period.
Export of Wood Products is Driving the Market
Wood products of Vietnam have developed strongly, achieved impressive growth. Vietnam is currently the world's leading exporter of wood products. The wooden products sector has now become a key exporter of the Vietnamese economy. The United States is a top export market for Vietnamese wood products and has contributed to the success of VietnamÕs exports in the first 10 months of 2019. Another important export market of Vietnamese wood and wood furniture is China. Vietnam is one of the biggest suppliers of wood and wooden furniture in the Chinese market, together with Italy and Poland. VietnamÕs wood businesses have recently made strong and effective changes in technologies and governance to ensure they are competitive within global market trends. The continuous development of technology combined with new trade deals will boost demand for Vietnamese wood and furniture industry. Furniture exports are oriented particularly towards North America and Europe whereas most fuelwood exports are destined mainly for Japan and South Korea.
The report covers major international players operating in the Vietnam Furniture Market. In terms of market share, some of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
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Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.