Vietnam major furniture exporter, but imported interior products dominate domestic market: official

Imported high-end interior products from European countries continue to dominate the Vietnamese market even though Vietnam is one of the world's largest furniture exporters, says Bui Quang Hung, deputy director of the Vietnam Trade Promotion Agency.

Hung was speaking Wednesday at the opening ceremony of the Vietnam Interior & Build Expo 2024 (Vibe Expo) in Ho Chi Minh City.

He highlighted the high demand that exists in Vietnam, which has a population of approximately 100 million and is undergoing rapid urbanization. Vietnam sees around 70-80 million square meters of new housing built annually, he noted.

Therefore, demand for interior products in the domestic market has grown rapidly, especially for living room sofas, dining tables and chairs, which have experienced substantial growth in recent years. Demand for similar products at hotels, office buildings and rental spaces has also been growing.

Meanwhile, according to the Centre for Industrial Studies (CSIL), between 2003 and 2023, Vietnam rose from being the 13th to to the 6th largest furniture manufacturer in the world, based on market value.

In the first eight months of 2024, despite global economic and political challenges, Vietnam's macroeconomy has remained stable. Production, imports and exports have grown positively, inflation is under control, and monetary and fiscal policies have been managed flexibly in line with market dynamics. Exchange rates and interest rates remain stable, and the labor market has recovered well, ensuring a balance between labor supply and demand.

During this period, Vietnam’s wood and wood products export turnover reached $10.24 billion, a 20.6% increase compared to the same period last year. The construction sector has also shown significant growth compared to 2023, Hung said.

However, despite increasing scale of production and growing demand in the domestic market, many Vietnamese interior businesses remain focused on exports, while local need has not yet been fully met. Imported high-end interior products from European countries continue to dominate the Vietnamese market.

In light of these challenges and opportunities, the Ministry of Industry and Trade, to which the Vietnam Trade Promotion Agency belongs, is working closely with other ministries, local authorities, industry associations and businesses to implement Directive No. 29/CT-TTg, dated August 27, 2024, on stimulating domestic consumption and supporting production, business, and market development, he said.

This included supporting businesses in participating in major domestic and international trade fairs and exhibitions and enhancing the competitiveness of small and medium-sized enterprises, especially against imported products.

These efforts also aimed to align with the global trend towards green and sustainable production and consumption, he added.

Tran Hoang Quan, director of the HCMC Department of Construction, said that in the current global economic and political climate, with the construction and interior export markets showing signs of recovery, growth has remained slow. However, the domestic real estate and construction sectors were showing promising signs of recovery.

VIBE 2024 will take place until October 5 with many activities including product exhibitions, seminars and workshops. The organizers are supporting enterprises in digitizing their exhibition spaces and participating in free online exhibitions 365 days a year at the HOPEFAIRS.COM platform, increasing their access to customers across borders.