In June, Nha Xinh's over 3,000 cubic meters of furniture display welcomed visitors at Antonia Phu My Hung, Tan Phu ward, Ho Chi Minh City (TP HCM). Besides showcasing new collections, the venue offered interactive experiences such as bedroom decoration guides, gift wrapping, and children's activities to attract customers.

Part of AKA Furniture, this chain operates 6 stores in TP HCM and Hanoi, owning brands like Nha Xinh, BoConcept, Bellavita Luxury, and Calligaris. They are currently upgrading another facility on Vo Nguyen Giap street in TP HCM, expected to open this month.

Nguyen Chanh Phuong, Vice Chairman of AKA Furniture, noted that the domestic market "is recovering well and becoming increasingly competitive." According to him, consumer demand is returning through a series of real estate projects, tourist resorts, and apartment complexes.

In particular, infrastructure investments connecting with the former Binh Duong and Ba Ria - Vung Tau provinces will boost the real estate markets in satellite areas. "By rule, construction comes first, followed by furniture. This represents significant room for growth for the wood industry in the coming period," said Mr. Phuong, who is also Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (Hawa).

Beyond Nha Xinh, foreign furniture and home appliance chains are also expanding their presence. In June, Muji (Japan) opened its 19th store in Da Nang. Similarly, the JYSK (Denmark) chain will open its 12th store in Thanh Hoa this month.

The wood processing industry comprises approximately 6,000 enterprises, with 45% having export capabilities. In the first nine months of 2026, wood and wood product export turnover was estimated at nearly 13.43 billion USD, a 7.3% increase compared to the same period in 2025. While export conditions are favorable, the domestic market is also becoming increasingly attractive, driven by substantial capital flowing into infrastructure and urbanization.

In TP HCM, opportunities span various types and segments. The government has assigned the locality to develop 181,257 social housing units and rental homes during the 2026-2030 period. Next year, a series of transit-oriented development (TOD) urban development plans are expected to be approved.

Pham Quang Nhat, Director of the Investment and Trade Promotion Center of Ho Chi Minh City (ITPC), assessed that the locality is entering a new development phase with expanding urban spaces and increasingly strong inter-regional connections.

"This is an opportunity for the architecture, furniture, and construction industries to capitalize on the wave of urbanization and the demand for innovating and developing urban living spaces, thereby building a solid foundation for long-term growth," he stated.

Across the country, numerous post-merger urban plans and a series of connecting infrastructure projects are also underway. "The domestic wood furniture market still has significant room for development, driven by urbanization and the increasing demand for living spaces," commented Nguyen Van Dien, Deputy Director of the Department of Forestry and Forest Protection.

Market research firm Ken Research predicts that Vietnam's furniture market size will grow from 9.76 billion USD in 2025 to 14.87 billion USD by 2031, with an annual growth rate of 7.26%, higher than the 6.27% rate during the 2020-2025 period. This growth is supported by demand for urban housing, hotels, and offices. Mid-range home furniture and project-based contract furniture are the two segments with the largest profit potential.

According to Nguyen Quoc Khanh, Chairman of the Vietnam Wood and Forest Products Association (VIFOREST), for many years, the wood furniture industry thrived on exports, but now the domestic market is also crucial, serving over 100 million people.

"These include families building homes, young people forming new lifestyles, and cities, hotels, offices, restaurants, schools, hospitals, and many living spaces being created daily," he stated at the Vietnam International Furniture & Building Exhibition (VIBE 2026), held in TP HCM last week.

A display space at Nha Xinh Antonia Phu My Hung. Photo courtesy of the company

While opportunities are abundant, much work remains. According to Mr. Khanh, returning to the domestic market presents the challenge of connecting all stakeholders: from raw material suppliers, manufacturers, construction material companies, designers, architects, and retail systems. The goal is to form an ecosystem that allows consumers easy access to quality goods that suit their tastes and budgets.

"Products must understand the climate, housing area, family culture, daily habits, and purchasing power of Vietnamese people. Only then can we build truly strong furniture brands," he emphasized.

Some businesses have begun investing to conquer the domestic market. At VIBE 2026, which gathered over 300 businesses and 700 booths, organizers noted innovations in materials and products targeting the domestic market, centered around four pillars: smart, stylish, sustainable, and identity-driven.

For example, many brands are innovatively conveying cultural stories into modern interior spaces. Go Minh Long launched 132 artistic laminate designs featuring real metal coating on wood. Similarly, artisans from the Tuong Binh Hiep lacquerware village combine traditional techniques with modern wood materials to create contemporary sculptural works.

With 65% of its revenue from the domestic market, Go An Cuong recently built an additional MDF factory with a capacity of 450,000 cubic meters, applying green technology. Le Duc Nghia, Chairman of the Board of Directors, stated that this direction is driven by consumer interest in environmental protection. "Customers are increasingly meticulous, visiting showrooms to see, finalize designs, and check product origins, from quality to green standards and supplier reputation," he added.

To ensure the sustainable development of the wood furniture industry, Nguyen Van Dien, Deputy Director of the Department of Forestry and Forest Protection, emphasized the need to strengthen links between forest growers and processing enterprises. Simultaneously, he advocated for encouraging the development of large timber forests, using legally sourced wood, promoting deep processing, and expanding the domestic market.

Vien Thong