1. Furniture Industry
- Vietnam & Global Market Outlook
Equatorial Hotel – Ho Chi Minh City
28 March 2013
DAM HUY BINH
Business Development Director
Dun & Bradstreet Vietnam

2. AGENDA
• Vietnam Timber and Furniture Industry
• Global Furniture Market Outlook
• US: Opportunities & Challenges for Vietnam Wood Furniture Exporters
• Solutions For Development of Vietnam Furniture Export
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3. Vietnam Timber & Furniture Industry
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4. VIETNAM TIMBER AND FURNITURE SUMMARY
• Processing & Manufacturing:
o 2,500 domestic invested enterprises and 400 FDI enterprises
o 1.796 enterprises in South East Area, Dong Nai (827), Bình
Dương (762), Ho Chi Minh (207)
• Employment contribution: 300,000 persons
• Global export coverage : Over 100 countries
• Export (90%); home consumption (10%)
• Material for manufacturing and export: Over 80% import from overseas
Source: MOIT, GSO
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5. VIETNAM IMPORT OF TIMBER
Timber Import Value in the past 5 years Key Import Markets
USD Million USD Million
1,600 1,500
285
300
1,400 1,362 250
1,200 200 196
1,098 1,147 200
1,000
905 150
800 89 86
100 62 50
600 50 31 28 26
400 -
200
-
2008 2009 2010 2011 2012
Source: MOIT
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6. VIETNAM EXPORT VALUE OF TIMBER AND
FURNITURE IN THE PAST 5 YEARS
USD Million
4,670
5,000
3,955
4,000 3,436
2,829
2,598
3,000
2,000
1,000
0
2008 2009 2010 2011 2012
Source: MOIT
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7. VIETNAM EXPORT OF TIMBER AND FURNITURE
2012
Export turnover: US$4.67 Billion - 19% YOY
Ranking in Worldwide Furniture Export: 6th in the world, 2nd in SEA
Vietnam Key Export Market 2012
Other United
Korea
Countries, States of
South,
13% America,
5%
39%
EU,
14%
Japan,
14%
Source: MOIT China, 7
15%

8. KEY CHALLENGES
• Product design competitiveness :
o Weaker than China , Taiwan, Malaysia and Thailand
o Monotonous, not diversified, so much dependent on foreign designs
• Global competitiveness: have not appropriate plans and strategies of sales &
marketing for world market penetration
• Skilled manpower:
o Lack of trained work force
o Lack of professional designers for creating products of own styles
o Lack of well trained and experienced marketing team thus losing profitable sales
opportunities.
• Uncontrolled production costs due to unsustainable energy price (electricity, coal,…) ,
increase of minimum wage
• Requirement for certificate of origin for legal timber as US LACET Act, EU FLEGT
regulations from markets of high responsibility in society and environment
Source : MOIT, GSO, CSIL
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9. GLOBAL FURNITURE MARKET OUTLOOK
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10. GLOBAL FURNITURE INDUSTRY
World Furniture
• China, Poland, Vietnam, Malaysia
Production
World Major Export • China, Italy, Germany, Poland, Vietnam, US, Canada,
Countries Malaysia, Mexico
World Major Imports
• US, Germany, France, Japan, UK, Canada
Countries
• EU, Norway, Switzerland, Iceland, North America: 46%
World Consumption • Asia Pacific: 44%
Source: WTO, CSIL (Centre
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for Industrial Studies)

11. GLOBAL FURNITURE INDUSTRY
Common furniture products: Wood and metal household, office, and institutional furniture;
mattresses; wood kitchen cabinets; commercial showcases and
shelving
USD Million
Hong
Italy Kong
2012 sales revenue gained Samson Holding 423.44
from Global Furniture
Brands Natuzzi 629.79
US
La-Z-Boy 1,231.68
US
Temper-Pedic 1,402.90
US
Herman Miller 1,724.10
US rlands Japan US
HNI 2,004.00
Okamura Corporation 2,283.29
Nethe
Hunter Douglas 2,573.00
Steelcase 2,749.50
US
Leggett & Platt 3,720.80
Swed
en
IKEA 27,500.00
0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 11
30,000.00

12. PRODUCT DESIGN TRENDS BY MAJOR MARKETS
Market Design Trend
Current Global Designs
• Europe : Classic Designs
Movement
• Green, Sustainable &
Healthy Designs (People • USA & Australia : Contemporary Designs
& Nature)
• Multi Function • Middle East : in between COMBI CD& CTD
• Multi / Alternative
Materials
• East Asia : Modern Designs (Including
Korea, Japan, modular system)
Taiwan & India
Source: WTO, CSIL (Centre
12
for Industrial Studies)

13. GLOBAL: FURNITURE MERCHANT
WHOLESALERS – 174,193 COMPANIES
Size by revenue break Global Merchant Wholesalers
1,000M - 10,000M 7
500M - 1,000M 11
50M - 500M 375
10M – 50M 2,144
5M - 10M 2,505
1M - 5M 14,260
<1M 68,399
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Source: D&B Hoovers 13
No. of companies

14. GLOBAL: FURNITURE RETAILERS – 307,623
COMPANIES
Size by revenue break Global Retail Trade Companies
1,000M - 10,000M 20
500M - 1,000M 27
50M - 500M 259
10M – 50M 1,050
5M - 10M 1,479
1M - 5M 19,096
<1M 123,263
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
Source: D&B Hoovers No. of companies 14

15. US FUNITURE MARKET
OPPORTUNITIES AND
CHALLENGES
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16. US FURNITURE INDUSTRY – 2012 REVENUE OF
MORE THAN USD 60 BILLION
Institutional
furniture
(used in
schools,
hospitals, Office
and… furniture,
Household
30%
furniture,
60%
Household Consumption
Blinds and
Mattresses , shades , Major Product Consumption
15% 10% Wood
kitchen
cabinet,
35%
Non-
upholstered
furniture,
20%
Upholstered
furniture, 16
Source: D&B Hoovers
20%

17. US FURNITURE INDUSTRY
• Country Risk - Household and office furniture sales depend on the health of the US
economy
• Design Trend — Focus more on Design, Quality.
o Office Furniture: More flexible to support changing work styles and greater
numbers of wires and cables for computer equipment accommodation
o Household Furniture: for more multipurpose rooms, with distinctions between
kitchens, living, and dining rooms disappearing.
• Large installation of Inventory Control Systems to:
o to track and age merchandise and monitor product availability
o to fill customer orders on time
o to decrease inventory costs at maximum
Will require vendors of good production assemblies, finance in good condition,
time-delivery committed transportation services for on time product delivery
• Finance Trend – More long term credit requirement to Sellers due to smoothing
uneven cash flow from US buyers
Source: D&B Hoovers 17

18. US - OPPORTUNITIES FOR VIETNAM FURNITURE
EXPORTERS
USD million
1,000M – 10,000M 2
US consumer spending
500M – 1,000M 7
on furniture and bedding
forecast to grow 4.3% in 50M - 500M 56
2013
10M - 50M 271
5M - 10M 361
US Furniture Merchant Wholesalers – 1M - 5M 4,560
16,537 companies
USD million < 1M 40,406
50M - 500M 15
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
US Furniture Retailers –
10M– 50M 240
52,957 companies
5M - 10M 323
1M - 5M 1,598
13,264
<1M
Source: D&B Hoovers 18
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

19. POTENTIAL MARKETS FOR 2013 EXPORT
Traditional Markets:
• US (Increase homebuilding index in 50 years)
• Japan (Rebuilding after tsunami)
• Singapore
• Australia
Emerging Markets:
• Middle East: Saudi Arabia, UAE, Bahrain
• Africa: Egypt, Algeria, Morocco, South Africa
• Russia, Kazakhstan Chile
Source: CSIL, World Furniture, MTIB , D&B Hoovers 19

20. SOLUTIONS FOR DEVELOPMENT OF VIETNAM
FURNITURE EXPORT
• Upgrade trained and skilled work force; esp., design team
• Always monitor, update and establish plan to meet with consumer behaviors,
preferences, designs, financial and legal developments in targeted markets;
• Build global supply management system to avoid hidden supply disruption;
• Aggressively penetrate global markets, actively approach various customers:
o Direct buyers
o Independent retailers
o Hypermarkets
o Contract manufacturing
o Hotels and resorts, public projects
 Always be proactive in your business development plan, minimize
your dependence on few of your key customers
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21. SAMPLE OF A GOOD SALES LEADS FOR
VIETNAM FURNITURE EXPORTERS
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22. SAMPLE OF A GOOD SALES LEADS FOR
VIETNAM FURNITURE EXPORTERS– KEY PEOPLE
CONTACTS
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23. HOW TO GET YOUR BUSINESS INDENTIFIED
GLOBALLY
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24. You need more than information…
Thank you
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