Vietnam home decor report highlights suppliers’ struggle to keep prices competitive
Online report features vases, figurines, planters and other home accents, plus a listing of 100 export suppliers across Vietnam.
The online report offers import buyers a listing of 100 export suppliers and profiles vases, figurines, planters and other home accents. It also features an overview of the industry, new product features, price guides and export data. A PDF of the report is available to download for free online.
Rising costs put pressure on product prices
Home decor makers in Vietnam are facing difficult times ahead as the ongoing trade tension between China and the US may have consumers putting off purchases of non-essential items.
Consequently, suppliers are wary of raising prices despite increasing production costs because they may lose orders or fail to attract new buyers. Current minimum wages in Vietnam’s various provinces are more than 6 percent higher than they were in 2017. For 2019, the proposal is to raise monthly rates by 5 to 6 percent.
An increase in the minimum wage pushes up social security contributions and other related expenses. Several companies, usually those with midsize or large operations, have invested in machinery to mechanize more steps and thereby cut labor costs and production lead times.
Makers are also leveraging domestic access to key raw materials to reduce expenses and keep prices stable. “Vietnam’s home decor sector has the advantage of being able to source natural materials such as bamboo, rattan, wood and clay locally,” said Ly Nguyen, export consultant of the Hinrich Foundation. “Most products in these materials are handmade, making each unique, and can be customized to client specifications.”
Suppliers and products
Established in 2013, Lac Viet Handicraft Export Co. Ltd in Da Nang exports various home accents, including vases, decorative bowls, photo frames and wall art. The company also offers handcrafted houseware and giftware.
Ngoc Dong Ha Nam Co. Ltd, which was founded in 1988, manufactures home furnishings from bamboo, rattan and other natural materials. Its headquarters and factory are in Ha Nam province.
Anchi Co. Ltd in Hung Yen province specializes garden planters and furniture made of fiberstone and other composite materials. The company was established in 2002.
The report further shows:
– Customs does not specifically track home decor as a separate category, but exports of basketwork, wickerwork, statuettes and other ornaments in 2016 amounted to $269.1 million, according to the latest figures in the DESA/UNSD, United Nations Comtrade database.
– Data from Vietnam’s General Department of Customs show that the country shipped abroad $8.4 billion worth of bamboo, rattan, ceramic and wooden products in 2017.
– Amid increases of 5 to 10 percent in raw material costs, suppliers intend to keep prices at current levels in the next six months to attract new clients and encourage more orders.
Vietnam Sourcing: Home decor is one of a series of online Sourcing Reports covering emerging Asia supply markets. A full version of the report can be viewed here.
Other related Sourcing Reports available available on the New Sourcing Markets website are: Home textiles, India; Home furnishings, Laos; and Home & garden decor, Philippines. The site also offers sourcing reports on other products and suppliers from India, Indonesia, the Philippines, Vietnam, Cambodia and Laos.Download the report