Philippine, Vietnam & Indonesia Indoor & Outside Industry

An Expert's View about Sourcing in Thailand

Posted on: 5 Apr 2010

Southeast Asia is one of the key production hubs of wooden furniture, with experienced manufacturers spread across Indonesia, Vietnam, Malaysia,Thailand and the Philippines. In fact,these countries are among the major furniture makers in the world, with Vietnam, Malaysia and Thailand among the top 10 exporters to the US.


Pieces made in Southeast Asia are known for their intricate handwovenand handcarved patterns, and innovative designs that reflect the region’s diverse culture. Indonesia, Vietnam and the Philippines share several material and design characteristics, but are also known for their individual strengths.


The Philippines is recognized as one of the front runners in terms of furniture design, while Vietnam has gained a reputation for the quality craftsmanship and service of its suppliers. Indonesia makers are known for their garden and wooden furniture.


Aside from the design and material innovations, the reasonable prices, the abundant supply of raw materials and the low minimum order requirements have helped Southeast Asia’s furniture industry to experience substantial growth in recent years. In 2007, Indonesia, Vietnam and the Philippines shipped $1.96 billion worth of wooden furniture, an increase of 33 percent over the previous year.


The following are some of the keytrends we see in the region’s indoor and outdoor furniture industry:

• Exports in the line are anticipated to increase marginally in early to mid 2009, with the economic downturn expected to reduce demand for furniture. Some suppliers, however,are still optimistic of achieving sales revenue growth. The global housing slowdown has also prompted many companies to focus on the domestic market, including the hospitality and tourism industry.

• Suppliers will target new export markets as they cut down their relianceon US sales. Emerging economies in Europe and Asia will be the focus of many companies.

• Many suppliers will keep product prices the same as raw material costsdrop due to weakening international demand.

• A number of companies will continue to address the growing demand for sustainable forest use by sourcing wood from FSC-certified or governmentand commercial plantations. Makers are also experimenting with new materials to differentiate themselves from competitors. For example, shells, cornhusks, leaves, vines and coconut husks are combined with metal, resinand wood.

• The influx of foreign investment will continue as companies transfer some or all of their production to Southeast Asia. These makers are capitalizing on the abundant supply of raw materials and the lower labor cost in the region.



The above is extracted from the Executive Summary of China Sourcing Report: Philippine, Vietnam & Indonesia - Indoor & Outdoor Industry


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Posted: 05 April 2010

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