Hanoi Wood Expo and Hanoi Furniture Fittings & Upholstery Expo

Logo of Hanoi Wood Expo

Pablo Publishing & Exhibition has launched two new wood and woodworking exhibitions in Hanoi, Vietnam — a domestic furniture market largely underserved, but holds much potential for players to tap into during the current economic downturn. 

From 29 May-1 Jun 2024, both Hanoi Wood Expo and Hanoi Furniture Fittings & Upholstery Expo will be held at the National Exhibition Construction Center (NECC) in Hanoi. While Hanoi Wood Expo specialises in machinery, tools and solutions for the woodworking segment, Hanoi Furniture Fittings & Upholstery Expo features more of furniture hardware, component parts and textiles.

Visitors can expect raw materials for woodworking; surface treatment and finishing solutions; Industry 4.0 solutions for the efficient furniture production; fittings such as kitchen and office furniture hardware and decorative profiles; upholstery products including fabrics, leathers, and springs; and more.

Furniture market in Hanoi

Hanoi

The furniture market in Hanoi has been witnessing strong growth in recent years, with an average growth rate of 10-12% per annum. In 2023, the bed, wardrobe, table and chair manufacturing industry in Hanoi has a growth rate of 7.7%. More specifically, in Q4 2023, the bed, wardrobe, table chair manufacturing sector grew by 17.7% over the same period in 2022.

Hanoi continues to focus on directing and urging investors and construction units to increase resources and speed up the construction progress of key works and projects. All these show how prosperous the Hanoi furniture industry is, and how it contributes to the local economy.

2023 was forecasted to grow about 11.5% compared to the year before, reaching a value of about 150,000bn Vietnamese dong (US$6.09bn). This growth is mainly driven by increased demand for new housing, as well as people’s need to improve living space. With a population of 100 million people and a rapid urbanisation rate, Hanoi is estimated to have 70-80 million square metres of housing built each year, leading to increased demand for interior and exterior wood products.

In 2024, the furniture industry in Hanoi is forecast to continue to grow at a stable pace, especially since the people’s demand for new housing and improved living space will continue to increase. Along with the strong participation of foreign businesses, the domestic furniture market is also witnessing a return of pure furniture exporters, since the export market is facing difficulties.

For example, Kettle Interiors Asia, a Vietnamese furniture manufacturing company based in Binh Duong, returned to the domestic market to partly overcome the sharp decline in export orders. Cao Van Dong, general director of the company, said that when participating in the domestic market, the company does not open brick-and-mortar stores but only does business through e-commerce, taking advantage of the store to display export products at the factory in the province — which does not cost much. On the contrary, thanks to accessing the domestic market of nearly 100 million people, the company managed to maintain jobs for more than 400 workers.

Businesses have been implementing many solutions such as changing models, expanding markets, innovating technology to adapt to the current market situation in the US and EU, where export orders are falling.

“Returning to the domestic market is one of the useful solutions to help wood processing enterprises diversify their output, expand new business opportunities, increase revenue, and reduce the risk of dependence on exports. Promoting the synergy between the potential domestic market and the continuous growth of exports,” said Do Xuan Lap, chairman of the Vietnam Timber and Forest Products Association (VIFOREST).

Overall, for 2024, development investment capital in the region is estimated to increase by 9.3% compared to the previous year, of which investment capital from the state budget managed by the locality increased by 11.5%. Attracting FDI reached more than US$2.9bn, an increase of 70.5% over the previous year, making it one of the top five localities in the country in attracting FDI.

To help furniture manufacturing businesses in Hanoi, Vietnam has implemented support policies in 2023. In particular, the application of preferential tax rates for imported materials for production wooden furniture will help reduce production costs and increase competitiveness for domestic businesses.

In 2023, banks in Hanoi city have successfully implemented the 2% interest rate support programme for commercial loans for enterprises, cooperatives, and business households facing difficulties. To date, accumulated disbursement revenue is 45.1tn Vietnamese dong, outstanding loans are nearly 15tn dong, and the amount of interest rate support is 193bn dong.

Curious to know more? Read on in the March/April issue of Panels & Furniture Asia.