Many offshore Chinese furniture companies said that they are directing orders back to China following the extension of Vietnam’s lockdown to the end of September 2021.
At the end of 2020, Vietnam surpassed China as the largest overseas supplier of veneer and plywood to the US, and Vietnam surpassed China as the largest furniture exporter to the US in May 2021.
But the COVID-19 pandemic ravaged Vietnam in mid-2021 and the government ordered factories to shutdown, resulting in a sharp drop in output. These factory closures have forced Chinese investors in Vietnam to put expansion plans on hold.
Due to the spread of the pandemic, Thailand, Vietnam, Malaysia and Indonesia have suffered renewed outbreaks. Most countries have declared a lockdown, resulting in the suspension of production in many factories and the return of orders from ASEAN countries to China.
Source: ITTO
