With many strengths in forestry development and favorable policies, the export of wood and wood products of Vietnam in general, and the export of wooden furniture, in particular, has achieved much success in the international market. In particular, Vietnam is also in the top 10 in the world in terms of manufacturing wood products and furniture and is the second largest exporter in the Asia-Pacific region.
In addition, Vietnam is the largest wooden furniture supply market for the United States - the largest wooden furniture import market globally. According to statistics from the US International Trade Commission, US imports of wooden furniture in the 10 months of 2022 reached $21.8 billion. Vietnam is the largest supply market for wooden furniture in the US, with a share of 36.4%.
In 2022, the export value of wood and wood products reach $16 billion, up 8.1% compared to 2021. In which, wooden furniture is always the main export item accounting for a high proportion, the export value of this item in 2022 is $9.96 billion.
The potential of Vietnam's furniture market
According to the Vietnam Timber and Forest Product Association, the demand for furniture products in the domestic market has increased sharply in recent years.
For manufacturing enterprises, developing the domestic market can be considered a useful solution to help diversify output and reduce risks when dependent on exports. Especially in the current situation when many factories have had to significantly reduce their capacity or close because most export markets face great difficulties due to wars, epidemics, and inflation.
Therefore, at present, a number of wood furniture manufacturers have made drastic changes to exploit the potential of the domestic market.
In this article, Vietdata will review some highlights in the financial statements of a number of wooden furniture manufacturers in Vietnam.
Wanek Furniture
Wanek Furniture Limited Liability Company (Wanek Furniture) was established in 2008. Wenek Furniture is one of the key companies in the world's largest furniture manufacturing supply chain with a distribution network to more than 123 countries.
In 2021, Wanek Furniture brought in about VND13.6 trillion in revenue and more than VND170 billion in profit after tax. Although this is the level of revenue that can be said to be the leading in the furniture manufacturing industry, the business situation of this business in recent years has been quite volatile.
Specifically, in 2020, Wanek Furniture's revenue reach VND15 trillion (up 130 times compared to 2019 revenue). But by 2021, the revenue of this enterprise only reach more than VND13.6 trillion.
Profit after tax of this furniture "tycoon" also continuously decreased from about VND1.9 trillion in 2019 to about VND170 billion in 2021.
Nitori Vietnam
Nitori Furniture Vietnam EPE is a member of NITORI Co., Ltd. in the field of furniture factory, established in 2003 with 100% investment capital from Japan. Nitori has 2 factories in operation in Hanoi Industrial Park and Ba Ria Vung Tau.
In recent years, Nitori Vietnam's revenue has continuously achieved a positive growth rate. Especially in 2021, Nitori Vietnam's revenue increased by 57% compared to 2020. Accordingly, its revenue reached nearly VND7 trillion and brought in nearly VND490 billion in profit after tax.
Glory Oceanic (Vietnam)
Glory Oceanic (Vietnam) Co., Ltd. belongs to Yangchen Wood Industry (Furniture) Group China. Glory Oceanic (Vietnam) Co., Ltd. was first established in June 2019 and is located in Binh Duong province, Vietnam, which is considered a favorable location for production and export thanks to the advantages of dense population, abundant labor resources
According to data from the report, it can be seen that the revenue of this furniture manufacturing business has increased continuously in the recent period. Specifically, revenue in 2021 reached nearly VND3.4 trillion, up 43% compared to the previous year.
Despite the growth in revenue, the profit after tax of Glory Oceanic (Vietnam) has been continuously negative since 2019.
An Cuong Wood
An Cuong Wood Joint Stock Company is a manufacturer providing materials, solutions, and furniture made from industrial wood in Vietnam and the region since 1994. Currently a manufacturer and exporter for many famous furniture brands in Japan, Southeast Asia, America, and Europe.
In 2021, the Group continued to focus on the main activity of manufacturing and trading materials, solutions, and furniture made of industrial wood with a clear shift in increasing the proportion of revenue.
Closing 2021 full of fluctuations, the Group's revenue reached about VND3.3 trillion, down 12% compared to 2020. However, thanks to proactively cutting costs and focusing on orders with good profit margins. The group's profit after tax reached about VND451 billion, down only 8% compared to 2020.
Shing Mark Vina
Shing Mark Vina Co., Ltd. is one of the companies specializing in the production and processing of interior decoration products, panels, and wooden and steel household appliances from officially imported wood materials and legal timber sources.
2020 is also a quite successful year for this foreign enterprise when the revenue is about VND3 trillion, up 10 times compared to 2019, and profit after tax also increased 2 times compared to 2019.
Le Hoang Minh Co., Ltd
Le Hoang Minh Co., Ltd is one of the companies specializing in manufacturing and exporting all kinds of wooden furniture, as well as processing to order. The company mainly produces products like living room furniture, kitchen furniture, dining room furniture, bedroom furniture, wooden doors, and stairs flooring,...
According to the data from the report, it can be seen that the revenue of this business has increased continuously, and notably, in 2020, the revenue of this business reached the milestone of VND2 trillion, an increase of 4.3 times compared to 2019. By 2021, this enterprise's revenue increase slightly by 7% compared to 2020.
Kaiser 1 (Vietnam)
Kaiser 1 (Vietnam) Wood Industry Co., Ltd., was established in 2004. Kaiser 1 is a leading furniture manufacturing company, with 100% foreign investment, mainly producing bedroom furniture and other items.
In the past few years, the revenue of this business has been quite volatile and almost flat at nearly VND2 trillion. Accordingly, the revenue of this business in 2019 reached nearly VND2.3 trillion and decreased to about VND2.1 trillion in the following two years.
In 2020, Kaiser 1 (Vietnam) brought in nearly VND120 billion in after-tax profit, an increase of nearly 50% compared to 2019 and then reduced to about VND75 billion in 2021.
Woodsland
Woodsland Joint Stock Company was established in 2002, is currently one of the largest furniture manufacturers in Vietnam. Wooden products manufactured by Woodsland have been present in most of the US, Canadian, Europe, Russian, and Japanese markets. Woodsland is also a potential wood supplier, always strictly complying with quality standards and satisfying a demanding market like the EU.
Over 20 years of operation, Woodsland has gradually affirmed its position in the domestic market as well as the international market. Accompanying that development is the continuous growth in revenue in recent years. Specifically, the revenue of this business reached nearly VND1.8 trillion, 3 times higher than in 2019.
However, Woodsland is also not immune to the impact of the Covid-19 pandemic when profit after tax has continuously grown negative in 2020 and 2021.
Truong Thanh
Truong Thanh Furniture Corporation was established in 2000. The company's main business is manufacturing and trading wood products. The company's main products are divided into 4 product groups: wooden furniture, outdoor furniture, wooden flooring, and other products such as S4S sawn timber, and small wooden details.
After a loss of more than VND1 trillion in 2019, by 2020 the Group's revenue has started to grow again and become profitable. Accordingly, the Group's revenue in 2020 reached more than VND1.2 trillion, an increase of 1.7 times compared to 2019, and brought in more than VND18 billion in profit after tax. This has helped TTF shares to avoid mandatory delisting.
The One
The One Furniture Trading And Manufacturing JSC was established on November 1, 1995, formerly known as Hoa Phat Furniture Joint Stock Company. With a history of nearly 30 years of establishment and development, The One Furniture has affirmed its position as the leading furniture supplier and manufacturer in Vietnam. 2022 is an important milestone, marking the transformation of Hoa Phat furniture brand into The One furniture.
In the context of the covid-19 pandemic, people's demand has dropped sharply, The One Furniture is also inevitably affected when revenue slows down in 2021, reaching about VND1.5 trillion (down 8% compared to 2020).
In 2019, this brand brought a profit after tax of up to VND310 billion. However, by 2020 and 2021, this company's profit dropped to VND150 billion.
Over the past time, although the world has had to deal with complicated developments of the Covid-19 epidemic, Vietnam's furniture industry still has an impressive growth rate. Vietnam has now become one of the world's leading countries in exporting wooden furniture with markets spanning over 140 countries and territories.
However, under the impact of inflation, supply chain disruptions, epidemics, etc., purchasing power in many markets around the world began to decline. The US and EU are the main consumption markets for Vietnam's wooden furniture, but high inflation makes consumers in these markets save money, in which wooden furniture is one of the non-essential aspects, so the demand dropped sharply… Therefore, in order to maintain growth momentum, wood industry enterprises need to be proactive and make more efforts to eliminate potential and existing difficult factors.
Source: Vietdata's 2022 Wood Industry Report
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