International Companies Ramp Up Investments in Vietnam's Furniture Market
Vietnam’s furniture market is attracting foreign firms due to its favorable business environment, including lower tariffs, easy trading, efficient logistics, and abundant manufacturing materials. According to market research company Mordor Intelligence, Vietnam is emerging as a promising hub for furniture manufacturing.
Central Retail, a retail corporation from Thailand, has recently launched its subsidiary, Come Home, in Ho Chi Minh City, aiming to tap into Vietnam’s flourishing interior decor market. With an estimated revenue of $1.25 billion in 2022, the domestic market is projected to surpass $1.4 billion in 2023, with an expected annual growth rate of nearly 10% from 2023 to 2027.
Denmark’s JYSK is another player making strategic moves in Vietnam, offering Scandinavian-style furniture and home decor products. They opened a new center in Hanoi, expanding their presence in the country since 2015.
Prominent furniture brands, ranging from mid-range to high-end, are also gaining traction in Vietnam. Hoa Phat Furniture JSC, a subsidiary of Hoa Phat Group, recently underwent a brand repositioning initiative, unveiling a new identity as The One Furniture.
According to a report by Mordor Intelligence, the Vietnam furniture market is expected to grow from $1.4 billion in 2023 to $1.82 billion by 2028, with a compound annual growth rate (CAGR) of 5.33% during that period. The export volume of Vietnamese-made furniture is also rising, with exports reaching over 120 countries, including major markets like the U.S., the U.K., Canada, Australia, and Japan.
Statista forecasts that the revenue in Vietnam’s furniture market will reach $1.34 billion in 2023, with a CAGR of 9.06% from 2023 to 2028.
Despite global economic challenges, Vietnam’s interior decor market continues to experience strong demand, driven by a growing preference for modern aesthetics and personalized home environments. With its attractive market conditions and export potential, Vietnam is becoming an increasingly appealing destination for foreign investment in the furniture industry.