08:37 | 27/11/2018 Trade
(VEN) - The Vietnamese furniture market forecasts a 25 percent growth in domestic sales to reach US$4 billion in the next few years.
At a meeting to discuss orientations and measures for fast and sustainable development of Vietnam’s wood processing industry and forestry exports, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said Vietnamese furniture has been gradually taking over the domestic market.
According to the latest data compiled by the Ministry of Agriculture and Rural Development, domestic consumption of furniture averaged about US$31 per person in 2017, equivalent to around US$2.8 billion overall. With the population growing and a burgeoning middle class, sales could reach US$4 billion.
Deputy Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), Huynh Van Hanh said the real estate sector (accounting for 40 percent of furniture consumption) is recovering, resulting in increasing demand or home furniture.
Vu Tien Thap, CEO of D’Furni, a furniture wholesaler, said domestic furniture sales are estimated currently at nearly US$3 billion. However, the domestic furniture market has only a handful of major players, such as Hoa Phat, but its sales amount to about VND2 trillion (about $100 million), leaving vast room for further development in this market.
Architect Nguyen Hoang Manh from the Mia Design Studio said that Vietnamese consumers keep buying and changing furniture as they become increasingly discerning and precise in their tastes, providing further potential for the furniture market. While Vietnamese businesses have invested in machinery, equipment and technologies to diversify their products, they have not honed in on consumer tastes.
To support businesses, HAWA has organized trade promotion activities for the domestic furniture market. In the past eight years, HAWA has organized the Vietnam International Furniture & Home Accessories Fair (VIFA) in order to link the Vietnamese furniture industry to the global market. Through its efforts, HAWA has successfully provided a venue for both buyers and sellers to forge valuable connections. The coming VIFA will be held in Ho Chi Minh City between Nov. 16 and 19 with the participation of many big names such as Scansia Pacific, Duc Loi, Nguyen Thanh, Royal Furniture, Square Home, Woac and Furniture Maker.
HAWA Chairman Nguyen Quoc Khanh said the domestic market needs large distributors, which Vietnam currently