Asia supplies more than 70% of imported wooden furniture, which last year totaled $23.3 billion, according to US International Trade Commission (USIT) data, a 9% increase over 2016. However, manufacturing origins are shifting within the continent. China continues to dominate, while Vietnam is on the rise. Malaysia, Indonesia and India continue to be part of the mix.

According to Furniture & Furnishing Export International, China exported $52.7 billion worth of furniture globally last year, while Vietnam exported $6.7 billion. But the US accounted for more than half Vietnam’s exports, while less than one-third of China’s.

Labor costs are certainly a big factor in giving Vietnam a competitive advantage, although not nearly as much as a decade ago. A furniture factory worker in Vietnam these days gets about $300 a month, while a Chinese worker makes about $450 a month. Ten years ago, a Chinese factory employee made about $300 a month, while his or her counterpart in Vietnam made only about $100 a month.

Today, Vietnam began by making bedroom furniture for the American market, its factories now construct as well furniture for the dining room, entertainment centers and home offices. China, by contrast, now supplies the US primarily with sofas and other upholstered and leather goods, along with steel and glass-related furniture.

Besides, Malaysian factories, for their part, continue to produce extremely low-end bedroom and dining room sets, while Chinese manufacturers in Indonesia have moved upmarket supplying affluent customers with hardwood furniture.

The US is by far the world’s biggest importer of furniture, accounting for about one-third of the world’s import totals.

(Source:ajot.com)