Vietnam Ceramic & Porcelain Industry

An Expert's View about Porcelain and Ceramic in Vietnam

Posted on: 5 Apr 2010

Vietnam’s strong capability in terms of design and artistic quality has enabled it to become a major supply hub of ceramic and porcelain products. Models from the country blend traditional craftsmanship with contemporary influences.


The industry is supported by several craft villages located in different provinces. Through skilled artisans, these communities lend their styling expertise, which has been handed down across generations.


Readily available raw materials are another key benefit of sourcing from Vietnam. Several regions provide various types of clay, helping diversifythe range of designs even more.


Most suppliers featured in this report ship the bulk of their output to overseas destinations. The EU and the US are the major markets, taking up more than two-thirds of total exports.


Ceramics dominate as the top product line accounting for more than 60 percent of total output. This segment is divided almost equally between crafts, and table and cookware. Porcelain items make up almost two fifths of total turnout.


The majority of ceramic and porcelain suppliers in Vietnam are small, locally owned enterprises. Most have more than a decade of experience, with a few having been in business for at least 30 years. Traditional production methods are still being used, although a growing number of companies are shifting to modern equipment.


The village of Bat Trang in the city of Hanoi is considered as the chief supply center for high-quality products, which boast superior design and construction. Other important sourcing centers are the provinces of Hai Duong, Bac Giang, Quang Ninh and Binh Duong, all of which specialize in a particular finish or manufacturing technique.


Exports fell dramatically in 2009 due to the global economic crisis. Because of this, the industry is expecting to register its first contraction in five years.


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

• Suppliers are forecasting a better business climate in 2010, in anticipation of renewed demand as vital markets recover from the slump. As such, more than half of makers interviewed for this report are confident of registering double-digit export growth.

• Prices are expected to increase over the next six months in response to surging production costs. Almost 90 percent of featured suppliers will be pushing up quotes. Of this number, half will be raising prices by as much as 5 percent.

• Manufacturers consider intense price competition from other countries, especially China, Turkey and Portugal, as the most critical challenge affecting the industry.

• Design diversity, the line’s key strength, will continue to be emphasized. About half of interviewed suppliers have indicated focusing on models that feature colorful styles and intricate motifs. Almost a quarter will release multifunction items that serve both as table and cookware.



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


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Posted: 05 April 2010

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