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VIETNAM SOURCING REPORT : WOODEN & WICKER FURNITURE

VIETNAM SOURCING REPORT : WOODEN & WICKER FURNITURE [ 17 - Jan - 2013 ]

Revitalized demand from traditional markets and growing popularity in new overseas destinations are pushing the wooden and wicker furniture industry to become one of Vietnam's most important export sectors.

Revenue in recent years has shown remarkable development that the country has become the largest furniture producer in Southeast Asia and one of the five biggest worldwide.

The gradual recovery of the US economy is the principal factor affecting the industry's expansion. In addition, the Asia-Pacific region is increasingly replacing the EU as the sector's secondary market.

This report focuses on the main types of wooden and wicker furniture from the Vietnam - living room, bedroom, dining & kitchen and garden & outdoor pieces.

Key Findings :

1. The majority of featured suppliers forecast export prices of wooden and wicker furniture to increase within the next six months due to surging raw material expenditure. A considerable minority will keep quotes unchanged to ensure competitiveness in attracting new customers from emerging markets.

2. Foreign revenue over the coming six months is widely projected to increase as a result of more intensive marketing efforts. Many suppliers also intend to capture greater buyer interest by revitalizing their product designs.

3. Most companies expect releases in the next 12 months to mainly feature styles with elaborate intricate embellishments to address the growing demand for such pieces. Emphasis on basic furniture will also remain important as a significant volume of orders are done on OEM basis.

4. The inadequate domestic supply of wood is the most critical challenge facing the industry. Suppliers are compelled to import raw materials, raising production costs. In addition, stringent policies enforced by key overseas markets on wooden products causing additional burden to furniture manufacturers.

5. There are several sourcing centers throughout the country. The most important ones are located in the Red River Delta, South Central Coast and Southeast regions. A number of factors provide these areas distinct advantages in the production of furniture.

DUBLIN - ( BUSINESS WIRE)