Vietnam is considered to be one of the region's most attractive markets for foreign investors with a steadily increasing GDP and booming foreign direct investment, a pattern which is forecasted to remain stable in the upcoming years. Nominal GDP in 2016 is estimated to reach €189.4 billion, recording a y-o-y growth rate of 6.2%. The country's GDP is forecasted to attain €295.4 billion in 2020.
With a forecasted annual growth rate of 9.5% to 2020, the home décor and furniture industry in Vietnam will be growing at a rapid rate to meet with the increasing demand for furnishing. Household expenditure on home décor, furniture and services is estimated to reach €16 billion in 2020. As the upcoming free trade agreements (FTAs) between Vietnam and partners such as the EU, the U.S. and ASEAN nations come into effect in the future, the demand for home décor and furniture exports will increase as the movement of goods across the border for Vietnam and its partners becomes easier. Moreover, Vietnam's market and environment are becoming more attractive for foreign investors as more international brands are looking to relocate their manufacturing plants to Vietnam to reap the benefits that come with the FTAs, or looking to expand their business in Vietnam as the import taxes on home décor and furniture goods will be lifted.
The country's recent move to middle income level (GDP per capita is estimated to reach nearly €2,000 in 2016 and is forecasted to accelerate to over €2,800 in 2020) along with rising demand for real estate are pulling along the demand for home décor and furniture market. Vietnamese consumers are shifting towards high-quality, western style furniture at an affordable price. As a result, there have been new foreign invested brands that aim to meet the demand of this new trend like UMA, a joint-venture between Sweden and Vietnam.
This report will look at the potential for growth of Vietnam's home décor and furniture industry in the next 5 years. It will also dive into the impact of the EU-Vietnam Free Trade Agreement (EVFTA) on the industry.
What is in the report
CHAPTER 1: VIET NAM OVERVIEW
- Vietnam's Economy
- Structure of consumption expenditures
CHAPTER 2: OVERVIEW OF THE HOME DÉCOR AND FURNITURE INDUSTRY
- Household Expenditure on Home Décor and Furniture Products
- Home Décor and Furniture Imports
- Home Décor and Furniture Export
- Key growth drivers
CHAPTER 3: COMPETITIVE LANDSCAPE
- Case Study: Truong Thanh Furniture Corporation
- Case Study: UMA
CHAPTER 4: CLIENT AND DISTRIBUTION
- Price Structure
- Profile of customers
- Distribution Channels
CHAPTER 5: REGULATORY AND LEGAL FRAMEWORK
- Regulatory and Legal Framework of Home Décor and Furniture Industry
- Forms of Market Entry
- Impact of the EVFTA on Vietnam's Home Décor and Furniture Industry
- Other FTAs that May Affect Trading Activities of European Countries