This article highlights some of the key differences between furniture manufacturers in Vietnam and China. With global trade growth is slowing down in recent years, Vietnam is becoming a more attractive option for new furniture manufacturers. Many international companies have set up operations in Vietnam, as the country’s economic development has reached a new level. Over the past decade, real estate prices in Vietnam have risen dramatically, making it the hottest potential investment prospect on the Asian mainland.
This research provides an up-to-the-minute and detailed analysis of the furniture industry in Vietnam and its prospects; through detailed charts, graphs, geometrical illustrations, and other statistical information processed by hand from leading industry experts and top furniture manufacturers.
A comparison of furniture factory production costs in Vietnam against those in China reveals a remarkable price difference, which can be explained primarily by the difference in manufacturing efficiency and scale. While labor cost in Vietnam is much lower than in China, average productivity is much higher. The nature of the products produced in Vietnam, especially lower-end products like bed frames and cheap furniture items, has made them very popular among the global furniture market.
In comparison to China, Vietnam’s proximity to US and European markets, its proximity to world-class infrastructure, including ports and railway lines, and lower labor costs have all helped make it a desirable destination for international manufacturing.
In this respect, it is not a completely accurate to compare the furniture industry in Vietnam with that of China. Although China is currently the world’s largest furniture producer, its rapid development has left many domestic furniture manufacturers behind. Vietnam on the other hand has been catching up with the other modernizing countries, especially with regards to its low-cost structure.
This has attracted many high-quality manufacturers to Vietnam, who are able to realize lower production cost by utilizing their own resources and increasing the volume of production. As a consequence, Vietnamese furniture manufacturers have more profitability as compared to the cost of producing similar items in China.