Vietnam Lawn & Garden Industry

An Expert's View about Garden Equipment in Vietnam

Posted on: 30 Mar 2010

Vietnam is known for the quality and workmanship of its handicraft products. It has a reputation for exporting lawn and garden items that are unique, durable and competitively priced. The more than 2,000 craft villages in the country offer a wide range of garden ornaments, planters, outdoor furniture and landscape supplies. Exported models feature traditional and contemporary designs that reflect Vietnam’s various cultural influences.


Aside from the craftsmanship and wide range of styles available, the suppliers’ acceptance of mixed orders and low MOQ have helped Vietnam become one of Asia’s major supply hubs for handicrafts.


The global financial downturn, however, has resulted in weaker sales. In fact, the $35 million worth of porcelain and ceramics, and $200 million worth of wooden products exported in January 2009 reflect a drop of 17 and 29 percent compared to the same period in 2008. Year-on-year growth for these two sectors in 2008 has also been modest at 1.82 and 18 percent, respectively.


The decline in consumer demand led to low overseas sales for many suppliers. This has forced most companies to cut manufacturing costs by streamlining production and reducing their workforce.


To boost competitiveness, makers are releasing new designs, striving to bring down quotes, and targeting new export markets.


The following are some of the keytrends we see in Vietnam’s lawn and garden industry:

• Exports are expected to grow, albeit moderately in the next 12 months, with suppliers anticipating the economic slowdown to continue.

• Many companies will keep current price levels. Intensifying competition in the industry has made Vietnam suppliers cautious of raising product quotes.

• The majority of Vietnam-made lawn and garden products are shipped to Europe and the US. Despite the dropin consumer demand in these areas,most suppliers will continue to targetthese regions.

• Companies will focus R&D efforts on simple and traditional designs that can appeal to more buyers. Trendy styles will be limited since these tend to be seasonal in demand.

• To reduce production costs, some pottery makers are considering shifting to bigger and faster-heating kilns that can bake more items. These types of furnaces, however, are more expensive than coal or wood-powered versions.



The above is extracted from the Executive Summary of China Sourcing Report: Vietnam - Lawn & Garden


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Posted: 30 March 2010