Furniture producers rebound on growing local demand

Furniture makers whose exports have been hit by the global economic crisis are now relying on growing local demand fed by growth in the residential property market.

Tran Thi Men, director of furniture maker Khang Gia Ltd. Co., moved her company’s shop to her home in Ho Chi Minh City’s Binh Thanh District last month.

She said that as well as cutting expenses, the move enabled the firm to tap the growing business at new residential zones nearby in District 2.

“We shifted our business to the domestic market as our export orders had been dropping since September last year,” she said, adding it had become too expensive for her company to rent its showroom on District 1’s Nguyen Thi Minh Khai Street.

Men also said the company had eliminated nearly all advertising costs.

“Now we just send leaflets to new residential zones only,” she said.

The cost cutting has enabled Khang Gia to raise its competitiveness with prices 15-20 percent cheaper than before, Men said.

Chu Van Son, director of furniture maker Son Thanh, also said his firm’s exports had slowed down since the second quarter of last year.

To counter the slump, the company was focusing more on domestic distributors in HCMC, Binh Duong and Dong Nai provinces, Son said.

Vietnam’s wooden product export turnover in the first half has been estimated at more than US$1.1 billion, a year-on-year decrease of 16.9 percent, Vietnam Television’s InfoTV said in a report on its website Tuesday.

Demand from its two main markets – the US and EU – dropped sharply due to the global economic recession, the financial network said.

Nguyen Thanh Tung, owner of the Noi That Re (Low-price Furniture) shop, also said it was time for furniture makers to foray into the domestic market.

He said his own business was thriving on growing local demand for high-end furniture.

Hoang Van Cuong, owner of furniture maker Hoang Anh, said new residential zones in fast growing areas like districts 7 and 2 would push furniture demand sky-high.

“New interior design shops open on the Huynh Tan Phat Street (in District 7) every two month,” said a shop owner in District 7.

Vietnamese furniture products are displayed at an exhibition in Ho Chi Minh City

thanhnien, tbktsg

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