In recent years, the Vietnamese people have become increasingly interested in buying imported goods from overseas (particularly Australia). This is because of the rising cost of imported goods in Australia and the increasing popularity of local products (especially “made in Vietnam” products). As a consequence, Vietnam has emerged as a major exporter of household furnishings and home accessories. As of mid-2021, there was an estimated average import bill per inhabitant of Vietnamese households of approximately US$out+Uy+sum depending on the overall consumption level. This bill of goods, which includes both residential furniture and non-residential furniture, is expected to increase in coming years due to growing demand, tighter access to finance and preferential pricing by international retailers. This essay will examine some of the key factors contributing to the recent growth of Vietnamese export-orientation.
Furniture industry opportunities in Vietnam are immense and can lead to significant profitability and a decisive competitive advantage if companies manage to harness the potential of this global furniture market. Many different types of industries in western and mid-western countries are looking to purchase furniture from Vietnam and other Asia-Pacific countries (most commonly China but also Indonesia, Malaysia, Thailand, and the Philippines). In the past few years, Australia has started to import furniture from Vietnam. The primary reasons for this are: (a) Vietnamese quality is considered to be better than any other available at home; (b) Australia has access to both cheap labor and a large rural base which would allow Australia to attain its current export performance level;, and (c) Vietnamese manufacturers tend to have lower overheads than their counterparts in Australia or the Asian markets.
To date, there is no significant evidence that Australian exporters are benefiting directly from purchasing furniture from Vietnam, and many Australian companies have already moved operations there to tap into the massive local market. As such, it appears that from a business perspective, there is nothing to gain by buying furniture from Vietnam or any of the other Asian countries, unless you are prepared to undertake the necessary research and sourcing to find reputable and reliable suppliers and manufacturers. However, with less than 20% of the Australian market currently comprised of small and medium enterprises (SMEs), this small proportion of potential customers would be worth taking into consideration. In any case, the potential for growth in Vietnam and Asian countries like Australia is huge, and this current focus on quality manufacturing will likely continue to grow.