Furniture makers in Indonesia said to be moving to Vietnam

Several foreign-owned furniture companies have relocated from Indonesia to Vietnam to take advantage of the more attractive business environment at the beginning of this year.

Abdul Sobur, Deputy Chairman of the Indonesian Furniture and Handicraft Industry Association, said Indonesia’s competitiveness is falling as production costs rise. It is only natural that companies would seek the most favourable locations.

He estimated that around 20,000 jobs are at risk if all foreign furniture manufacturers decide to leave Indonesia.

Vietnam’s furniture exports were just over US$7 Bn last year, more than four times that of Indonesia’s.

Source: ITTO/ Image: Furniture manufacturing in Vietnam