Earlier this year, Nha Xinh upgraded its showroom in Phu My Hung, Ho Chi Minh City. The new space, which opened in March, emphasizes comfort, convenience, and versatility to help customers visualize and select products.

The furniture chain has 6 stores in Ho Chi Minh City and Hanoi, selling products primarily designed and manufactured at the AA Tay Ninh factory. The factory supplies both the retail stores and high-end hotels and international resorts.

Nguyen Quoc Khanh, chairman of AA Corporation, which owns Nha Xinh, said the chain could see 15-20% growth this year. "We are focusing heavily on the domestic market and increasingly want to expand," he said.

Vietnam’s wood processing industry comprises around 6,000 businesses, with 45% capable of exporting, according to Nguyen Chanh Phuong, vice chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA). In the first eight months of the year, wood and wood product exports reached 11.1 billion USD, a 6.3% increase compared to the same period in 2024.

Despite this favorable situation, experts believe that focusing on the domestic market is a promising direction given the unpredictable nature of global trade. "Besides exports, the Vietnamese furniture industry has a great opportunity to grow strongly in the domestic market," said Phung Quoc Man, chairman of HAWA.

Citing industry estimates, Khanh said Vietnam's furniture market is worth approximately 15 billion USD. "The market is growing at an average of 5-10% annually, thanks to urbanization and rising living standards," he said.

This year, the recovering real estate sector is providing additional momentum. According to Avison Young Vietnam’s Q2 report, the apartment market in Hanoi, Da Nang, and Ho Chi Minh City continues to rebound. The hotel and resort segment is also seeing an influx of new supply.

HAWA chairman Phung Quoc Man added that the merger of administrative units, especially in the expanded Ho Chi Minh City, has created greater development space, driving urbanization and demand for both public and residential construction. "This means the construction, design, and especially the furniture industries have a significant opportunity to grow and meet increasing domestic demand," he said.

Not only Nha Xinh, but other domestic brands like Go Minh Long are also seizing this opportunity. This month, they opened an 800 m2 showroom in Royal City, Hanoi. International furniture, homeware, and utility chains are also expanding their presence. In March, JYSK (Denmark) opened its 7th store in Hanoi, bringing its total in Vietnam to 13. Two Japanese brands, Nitori and Muji, now have 5 and 17 stores, respectively.

A corner of Nha Xinh's showroom in Phu My Hung, Ho Chi Minh City. Photo provided by the company

A corner of Nha Xinh's showroom in Phu My Hung, Ho Chi Minh City. Photo provided by the company

At the VIBE 2025 exhibition, which focuses on connecting businesses in architecture, interior design, and construction within the domestic market, the number of participating businesses increased by 60% compared to 2024, with 550 booths. "This shows the renewed dynamism and positive signals of the domestic market," said a representative of the organizing committee.

However, conquering the domestic market requires overcoming certain obstacles. Competition is fierce in terms of design and price due to the influx of goods from ASEAN, China, and other countries. In the first eight months of the year, wood and wood product imports reached over 2.1 billion USD, up 10% compared to the same period in 2024, according to the Customs Department.

Distribution channels remain relatively traditional and fragmented. According to market research firm Mordor Intelligence (India), the retail channel (B2C) accounted for 72% of Vietnam's furniture market sales last year and is projected to grow by 8.3% annually. The mid-range segment accounts for nearly half of the market, and the high-end segment, mainly imported from Europe, is also growing at nearly 7% annually.

In terms of distribution, traditional store systems still hold an advantage as customers prefer to experience furniture, especially wooden pieces, firsthand. According to Nguyen Quoc Khanh, who is also the head of the VIBE 2025 organizing committee, the biggest bottleneck for businesses wanting to reach domestic customers is the lack of sufficiently large retail chains. Only with large-volume orders from buyers can production costs be reduced and competitiveness increased.

Furthermore, for export-oriented businesses accustomed to manufacturing based on existing designs from international clients, doing business domestically requires investment in market research, understanding consumer habits, aesthetic preferences, and spending levels to develop suitable products.

"Businesses must focus on improving their design capabilities and adapting to distributing products based on the actual needs of society. This is a new challenge, especially for domestic furniture manufacturers," he said.

Vien Thong