VIETNAM IS A MAJOR MANUFACTURING HUB FOR MY FURNITURE BUSINESS
“When it comes to wood-based products, Vietnam is by far the best country to manufacture in.”
In addition to being a beautiful country that’s rich in culture, traditions and cuisine, Vietnam is a top producer of wood-based furniture and interior products. As such, Ideoli has established key relationships within the country to help us create exceptional products for our clients.
Being a hands-on company, Ideoli’s team makes trips to Vietnam to check in on our manufacturing there, and we’re always amazed at the quality of local craftsmanship.
“When it comes to wood-based products, Vietnam is by far the best country to manufacture in,” says Ideoli’s CEO George Stroumboulis. “The quality is unbelievable, the responsiveness and the ability to take custom designs and to implement them with what the client is looking for has been an easy process for us.”
Vietnam is such a great market to manufacture in because of a combination of factors including a skilled labor force with manufacturing know-how and access to several quality wood products from around the region.
“Vietnam has built an expertise over the last 20 to 25 years and has become maybe the most competitive producer in the wood industry,” says Thomas, an Ideoli partner.
Vietnam is a perfect place for Ideoli’s production needs, and we’re fortunate to have found such great partners that can help us create products of the highest standards.
We look forward to taking more trips to Vietnam to create even more amazing products for our clients. And stay tuned for more content giving you a first-hand look at our production runs in Vietnam.
On site at our production facility in Ho Chi Minh City.
WHY AMERICAN COMPANIES SHOULD CONSIDER VIETNAM AS A MANUFACTURING BASE
There are several reasons why an American company might consider manufacturing its products in Vietnam:
Cost Efficiency: Vietnam offers lower labor and production costs compared to many other countries. This cost advantage can be particularly attractive for companies seeking to reduce manufacturing expenses and increase profit margins.
Skilled Workforce: Vietnam has a large and growing pool of skilled workers, especially in industries such as textiles, electronics, and manufacturing. The country has invested in vocational training programs, resulting in a skilled workforce that can meet the demands of various industries.
Strategic Location: Vietnam's location in Southeast Asia provides access to emerging markets in the region. By manufacturing in Vietnam, American companies can establish a production base that enables them to tap into the growing consumer markets of ASEAN countries and take advantage of regional trade agreements.
Favorable Business Environment: Vietnam has implemented economic reforms to encourage foreign investment and facilitate business operations. The government has taken steps to improve infrastructure, simplify administrative procedures, and enhance legal frameworks, making it easier for companies to establish and operate manufacturing facilities.
Increasingly Stable Economy: Vietnam has experienced steady economic growth over the years, with a stable macroeconomic environment. This stability provides a favorable business climate and reduces the risk associated with manufacturing operations.
Free Trade Agreements: Vietnam has signed several free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA). These agreements provide companies with preferential access to international markets, making Vietnam an attractive manufacturing base for export-oriented businesses.
Established Manufacturing Infrastructure: Vietnam has a well-developed manufacturing infrastructure, with industrial parks and zones equipped with necessary facilities and utilities. This infrastructure supports efficient production processes and enables companies to establish manufacturing operations more easily.
Supportive Government Policies: The Vietnamese government has implemented policies to attract foreign investment and support manufacturing industries. These policies include tax incentives, preferential treatment for certain sectors, and initiatives to promote research and development.
It's important for companies to conduct thorough market research, assess the specific needs and requirements of their industry, and evaluate the potential benefits and challenges before making any decisions about manufacturing in Vietnam. Factors such as product complexity, supply chain logistics, and market demand should be carefully considered to determine if manufacturing in Vietnam aligns with the company's overall strategy and objectives.
