An Overall Guide to Sourcing Furniture from Vietnam
Vietnam, a country blessed with rich natural resources, has gained significant attention over the past few years, particularly in the realm of furniture manufacturing. This Southeast Asian nation is emerging as a robust hub for sourcing furniture, with a broad array of wood types and an array of styles to choose from. This comprehensive guide aims to provide insights into sourcing furniture from Vietnam, with a focus on the types of wood, import duties, and potential challenges. It also introduces Liha, a leading furniture sourcing company in Vietnam, boasting an elite network of furniture manufacturers.
Why is Vietnam an Attractive Destination for Furniture Sourcing?
Vietnam's furniture industry has been on the rise for several years, thanks to its versatile sourcing market, abundant natural resources, and competitive labor costs. With its entry to the WTO in 2007, the country has seen exponential growth in this sector, making it one of the largest furniture exporters worldwide.
In 2021, Vietnam became the 4th largest furniture exporting country in the world, and ranked the 2nd in Asia.
Multinational companies such as IKEA, Scancom, and small-to-medium-sized manufacturers like Wendelbo from Denmark have set up their production bases in Vietnam. Factors contributing to this growth include competitive labor costs, strategic bilateral trade agreements, and a well-educated workforce. The Vietnamese government has also put in place vocational education and training programs to equip the workforce with the necessary skills.
Since 2008, all of Wendelbo’s work comes from their Vietnamese production facilities. Image: Saigoneer.com
Vietnam is also home to a large number of FSC-certified suppliers, ensuring the legal and sustainable sourcing of wood. This, combined with the country's robust supply chain and a broad sourcing market, makes it an attractive destination for furniture sourcing.
Popular Wood Types in Vietnam
Vietnam is a tropical country with a hot and humid climate, which supports the growth of various hardwood species. The types of wood used in Vietnam for furniture manufacturing differ significantly from those in Europe, Russia, and the US. Here are some of the commonly used wood types in the Vietnamese furniture industry.
Acacia
Acacia is one of the most commonly used woods in Vietnamese furniture manufacturing. Known for its durability, light modern color, and solid look, Acacia is a popular choice among suppliers. The wood grows rapidly in Vietnam's climate, resulting in a low-cost and abundant supply. Its high density and resistance to heat and moisture make it ideal for outdoor furniture and kitchen sinks.
Rubberwood
Rubberwood is another prevalent wood type in Vietnam. Environmentally friendly and easy to engrave, paint, and nail, Rubberwood is used by a significant number of Vietnamese furniture manufacturers. The wood is also resistant to shrinkage, offering fewer issues with warping. However, it has a lower resistance to mold and termites, which is a limiting factor.
Plywood
Vietnamese furniture manufacturers also demonstrate expertise in the production of plywood, Medium Density Fiberboard (MDF), High-Density Fiberboard (HDF) veneers, and particle boards. These materials offer a modern look and a lightweight alternative to natural wood, making them popular among customers.
Bamboo
Although technically a grass, bamboo is increasingly used in furniture production. Its fast growth rate, low water absorption properties, high stability, and resistance to scratches make it a popular and sustainable alternative to traditional wood.
Wood Types Difficult to Source in Vietnam
While Vietnam offers a vast array of wood types, sourcing certain types of wood from this country can be challenging. These include oak, beechwood, pine, teak, eucalyptus, walnut, ash, and ironwood.
These wood types are not readily available in Vietnam and often have to be imported from European countries and the US.
Understanding Import Duties for Furniture from Vietnam
When planning to import furniture from Vietnam, the first step is to understand the Harmonized System (HS) Code for the type of furniture you wish to source. Additionally, it's crucial to check if your country and Vietnam have signed a Free Trade Agreement (FTAs).
Import Duties to the EU
The EU-Vietnam Free Trade Agreement (EVFTA) has significantly reduced tariffs for furniture imports from Vietnam to the EU. Currently, a majority of wooden products from Vietnam enjoy a preferential tax rate of 0% when imported to the EU.
Import Duties to the US
Although Vietnam and the US do not have a free trade agreement, they do have a bilateral trade agreement that allows importers to enjoy lower tariffs compared to China. For instance, wooden dining tables from Vietnam to the US (HS code 9403.40.90) are exempted from import tariffs.
Vietnam's impressive growth in the furniture industry, coupled with its versatile sourcing market and attractive import duties, make it a lucrative destination for sourcing furniture. Whether you're looking for indoor or outdoor furniture, Vietnam offers a broad range of options to suit your needs.
However, it's crucial to work with a reliable sourcing company to navigate the complexities of international trade. Liha, a leading furniture sourcing company in Vietnam, can provide invaluable assistance in this regard, helping you connect with the best furniture manufacturers in the country. Our manufacturing network boasts 8 factories (4 in Hung Yen and 4 in Binh Duong), 5 warehouses located in Hanoi, Haiphong, Nghe An, Da Nang, and Ho Chi Minh to accommodate the increasing logistics demand for offshore markets, and a 1,500 member workforce. With a team of experienced sourcing specialists, Liha offers all-encompassing furniture procurement services, from design, material sourcing, and production to warehousing.
Liha’s operation network:
Our manufacturing network boasts 8 factories (4 in Hung Yen and 4 in Binh Duong), 5 warehouses located in Hanoi, Haiphong, Nghe An, Da Nang, and Ho Chi Minh.
Book a consultancy session with us now
If you're considering sourcing furniture from Vietnam, don't hesitate to reach out to us via the contact form for more information. We offer a comprehensive range of services to help you navigate the Vietnamese furniture market with ease.
