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Vietnam's furniture market is developing, creating opportunities for many businesses to move into the domestic market.

Despite being greatly affected by the Covid pandemic as well as restrictions on import and export, Vietnam's domestic furniture market has been developing quite stably in recent years. Furniture products, especially products made from wood, are achieving quite good growth in the domestic marke


Vietnam's export wood market is currently facing challenges in terms of output. As a result, many businesses have shifted their focus towards the domestic market. The demand for furniture products in Vietnam is on the rise, providing opportunities for businesses to tap into the domestic market. 


Both foreign and domestic businesses are now competing for a share of the domestic wooden furniture market, especially with the difficulties in the export market. By targeting the domestic market, businesses can maintain their operations and also promote their export products to local consumers. 


However, the cost of input materials for furniture production has significantly increased in the period of 2020-2022. This poses a major challenge for furniture businesses, as although they may be achieving good business results, their after-tax profits are not substantial.


MOHO


The MoHo furniture brand, which is a part of Savimex, was officially launched in 2020. Savimex is a specialized unit that manufactures, processes, and exports wooden furniture, household wooden products, and modern and classic interior wooden furniture. Savimex products are exported to highly demanding countries such as the US, Japan, and Korea. The MoHo brand was established with the purpose of serving the domestic market. 


The revenue of the company that owns the MoHo brand is expected to decrease by approximately 9.7% in 2022, reaching 911 billion VND. On the other hand, MoHo's profit after tax is expected to increase significantly in 2022, with a projected revenue of 59 billion VND.


THE ONE (Hoa Phat)


The One Furniture Company, formerly known as Hoa Phat Furniture Joint Stock Company, was established in 1995. On January 5, 2022, Hoa Phat was officially renamed The One. The One is a leading company in researching and producing furniture that caters to the specific needs and physical standards of Vietnamese people. 


The company specializes in 6 main furniture industries: Office, Construction, School, Healthcare, Household, and Family. The One prides itself on being the most modern furniture production line in Vietnam, equipped with advanced technology such as plating and powder coating lines, CNC machines, cutting machines, punching machines, pipe bending machines, and sawing machines. The company also utilizes automation and machine systems for processing and producing wooden furniture. 


Despite the current challenges in exporting, The One remains focused on the domestic market and has not been significantly impacted in terms of revenue. In 2022, The One recorded a revenue of 1,461 billion VND, which is equivalent to the same period last year. However, the company's profit after tax has decreased by more than half compared to previous years, reaching only 76.7 billion VND in 2022.


Revenue of some furniture brands
Revenue of some furniture brands

NITORI


Nitori Vietnam Export Processing Enterprise (Nitori Furniture Vietnam EPE) is a member of the Japanese Nitori Group and specializes in wooden furniture production. It was established in 2003 with 100% investment capital from Japan. In 2005, the enterprise began construction of its first factory in Vietnam and started production. Currently, Nitori has two production factories located in Hanoi and Vung Tau. 


The company's business and production performance in the period of 2020-2022 has been quite positive, with continuous growth in revenue. By 2022, Nitori is projected to achieve a revenue of 7,660 billion VND, representing a 9.5% increase from the previous year. Although the company's profit after tax decreased in 2021, it is expected to recover to its original level in 2022, with a projected amount of over 612 billion VND.


Millennium Furniture


Millennium Furniture is a key company in the supply chain of the world's leading American Furniture Manufacturing Group, with a distribution network spanning 123 countries. In Vietnam, the group experienced significant growth and expansion in Binh Duong and Quang Ngai at the end of 2019. All of the group's products are exported to the US market upon completion. 


In 2021, Millennium Furniture's revenue saw a dramatic increase, doubling from the previous year to reach 5,801 billion VND. However, this number is expected to decrease slightly to 4,913 billion VND in 2022. The after-tax profit of the business is projected to only increase in 2021, but by 2022, it will return to its original level or potentially even lower.


ROCHDALE SPEARS


The Rochdale Spears Company was established in 2003 as an internationally focused business, serving some of the biggest names in the luxury furniture market. It is a highly successful group of companies that designs, manufactures, and distributes designer home furnishings and decorative accessories through high-end distributors and retailers in the United States. Currently, the company has three production factories in Vietnam. While Rochdale Spears' revenue has been growing year by year, it has not been a significant increase. 


In 2022, the net revenue is expected to reach 2,997 billion VND. However, despite the growth in revenue, the after-tax profit for Rochdale Spears has not seen the same success. In 2021, the business suffered a loss of over 87 billion VND. Although there was no further loss in 2022, the company still has not been able to return to its original profit level.


KAISER 


Kaiser 1


Kaiser 1 Wood Industry Company Limited (Vietnam) was established in 2004 and is a leading furniture manufacturing company with 100% Taiwanese investment capital. The company primarily produces bedroom furniture and other types of items. Kaiser's factory is located in My Phuoc 1 industrial park, Binh Duong, covering an area of more than 30 hectares. 


In 2022, Kaiser's financial performance has shown stability, with both revenue and profits experiencing significant growth. The company recorded a revenue of 2,570 billion in 2022, an 18.2% increase from the previous year. Additionally, the profit after tax has doubled compared to 2021, reaching 174 billion VND. 


Kaiser 2


In 2012, Kaiser 2 Co., Ltd. was established and expanded production in Vietnam. While Kaiser 2's sales may not be equal to Kaiser 1's, they have shown continuous growth from 2020 to 2022. In 2022, Kaiser 2 is expected to reach a revenue of VND 1,824 billion, with a profit after tax of 148 billion VND.


SHING MARK VINA


Shing Mark Vina is a Taiwanese furniture group with facilities spanning several countries, including Hong Kong, the United States, Vietnam, and China. In 2005, the company entered the Vietnamese market with a project covering over 100 hectares in Trang Bom. While the majority of Shing Mark Vina's products are exported globally, some are also distributed in the domestic market. 


The company's revenue has been declining in the period of 2020-2022, with a projected revenue of only 2,459 billion VND in 2022. In 2021, the company's profit after tax is expected to sharply decrease, with a sudden drop from positive to negative, amounting to over 33 billion VND. Although there is some improvement in the profit level in 2022, the company is still projected to suffer a loss of over 6 billion VND.


Profit after tax of some furniture brands
Profit after tax of some furniture brands

SCANCOM


ScanCom, founded in 1995, is a leading enterprise in the global outdoor furniture manufacturing industry. The company is committed to providing sustainable products that protect the environment. ScanCom's headquarters are located in Korsor, Denmark, while its main production facility in Vietnam is situated in Ho Chi Minh City. In October 2018, ScanCom's new modern factory in Long Giang industrial park, Tien Giang province, was officially put into operation. 


However, despite these advancements, ScanCom's revenue in Vietnam is expected to decrease by approximately 14.1% in 2022 compared to 2021, reaching 2,051 billion VND. In 2021, the company suffered a loss of VND 165 billion. However, in 2022, ScanCom has made significant improvements, reducing its loss to just over 1 billion VND.


RK RESOURCES 


RK Resources owns 100% Malaysian capital. Production activities at RK Resources are operated from 6 factories in Malaysia, Vietnam and Thailand with a total area of up to 75 hectares. Currently, RK Resources has made great strides to become one of the largest manufacturers and exporters of rubber wood furniture in Malaysia and Vietnam.


RK Resources' business situation in 2022 will see a slight decline. The company's revenue was recorded at 1,970 billion VND, 436 billion VND less than in 2021. Profit after tax reached 133 billion VND, down 10.2% compared to the previous year.


Hoang Minh Furniture


Le Hoang Minh Co., Ltd. was established in 2001. The company specializes in manufacturing and exporting wooden interior products: living room, bedroom, dining room and some products according to customer requirements. The company's products are mainly exported to European, Australian and American markets. In addition, Hoang Minh Furniture also provides the cabinet market with product lines: doors, flooring, kitchen cabinets, stairs.


Hoang Minh Furniture's revenue in the period 2020-2022 does not fluctuate too much, only in the range of 1,900 billion to 2,300 billion. Despite revenue of trillions, this company's after-tax profit is only a few hundred to 1 billion VND. In 2022, this business will also suffer a loss of more than 3 billion VND.


AA Tay Ninh


AA Architecture Construction Joint Stock Company was founded in 1993 in Ho Chi Minh City with the aim of becoming a leading interior contractor and furniture manufacturer for high-end hotel projects. In addition to operating in Vietnam, AA Tay Ninh has 13 subsidiaries in 7 countries (Myanmar, Cambodia, Bhutan, Japan, USA, Singapore, Thailand) and exports furniture products to over 40 countries worldwide. 


The company's revenue has grown significantly from a few billion VND in 2020 to 1,907 billion VND in 2022. After experiencing a loss of over 67 billion VND in 2020, AA Tay Ninh has returned to profitability in just 2 years. However, in 2022, the company recorded a net loss of 47.7 billion VND.


GREAT VECA


Great Veca Vietnam Co., Ltd. was founded in 2002 in Song May Industrial Park, Dong Nai Province. This company is fully owned by Taiwanese investors and specializes in manufacturing and exporting wood and interior decoration products. Great Veca has experienced significant growth in both revenue and profits. 


In 2022, the company's revenue reached VND 1,724 billion, a 26.8% increase from the previous year. Additionally, the company's profit after tax saw a substantial increase, reaching VND 70 billion, a 54.2% increase from 2021.


GRAND WOOD


Grand Wood was established in August 2015 in Binh Duong. It is a company with 100% investment from Taiwan, operating in the production of wooden furniture with over 2000 employees. The company specializes in exporting to European countries. 


In 2022, Grand Wood's net revenue reached 1,699 billion VND, an increase of 18.7% compared to 2021. Despite the high revenue, the company's after-tax profit remains negative. However, there is a bright spot for Grand Wood's profit as this loss is gradually decreasing from several billion to only 3 billion VND in 2022.


DANH UU


Danh Uu Co., Ltd. was established in 2015 with investment capital from Taiwan. As of now, the company has been operating for over 8 years in the field of manufacturing wooden beds, cabinets, tables, and chairs. The main export markets for Danh Uu are the UK and the US. 


The business and production situation of Danh Uu during the period of 2020-2022 has not seen much fluctuation, with revenue consistently ranging from 1,600-1,700 billion VND. However, the after-tax profit of Danh Uu has continuously decreased, with the company facing a loss of over 6 billion VND in 2022. 


The domestic market still has a large capacity, and the furniture industry in Vietnam continues to develop strongly, creating opportunities for businesses to shift their focus to the domestic market. Combining the potential of the domestic market with furniture exports will help businesses overcome their difficulties in finding outlets and open up new business opportunities.


Source: Vietdata's furniture industry report in 2023

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