News

Hanoi market: Prospects and opportunities

2023-12-15

In Vietnam, Hanoi ranks as high as Binh Duong municipality and Ho Chi Minh city in terms of investment opportunities for the furniture and real estate industries. Here is a brief overview of what the Hanoi furniture and construction markets have to offer. WOOD AND WOOD PRODUCTS Hanoi produces and exports various wood and wood products, but the segments that have recorded the strongest growth thus far are wood chips, pellets, and wooden furniture, with furniture being the largest proportion in the industry, occupying as much as roughly US$6.3m in the first 11 months of 2022 (Fig. 1).* According to data by the Fine Arts Association of Ho Chi Minh city and Handicraft and Wood Industry Association of Ho Chi Minh city (HAWA), the average consumption and demand for furniture in Vietnam is $21 per person per year.* This figure by itself might not seem much, but taking into account Hanoi’s population, which is around 8.5 million people as of early 2023* — accounting for about 8.5% of the country’s population, second highest after Ho Chi Minh city — the domestic demand for furniture can exceed over $100m annually. Furthermore, with Hanoi’s current average population density of about 2,480 people per km2 — 8.3 times higher than the population density of the whole country, and second highest after Ho Chi Minh city, which is 4,375 people per km2 — this density should be a clear indicator of how strong the demand for furniture and furnishings can be in the near future, as Hanoi continues to grow in population.* Preliminary results announced by the Population Living Standards Survey 2022 of the General Statistics Office reported that Hanoi ranks second in terms of per capital income in the country with 6,423m Vietnamese dong per person per month, while Binh Duong takes first with 8,076m Vietnamese dong per person per month (Fig. 2).* As of Q1 2023, according to the General Statistics Office, the average monthly income of employees in Q1 2023 was 7m Vietnamese dong person, an increase of 197,000 Vietnamese dong compared to the previous quarter and an increase of 640,000 Vietnamese dong over the same period last year.* Although per capita income is not high, the demand for high-end furniture in Vietnam is not inferior to that of Hong Kong, Singapore, or other very high-income countries. In fact, Hanoi and Ho Chi Minh city are two markets where the demand for high-end furniture products is rapidly increasing. And to meet this demand, many furniture companies, local and global, have set up in Hanoi, approximating 710; Ho Chi Minh city has the most furniture companies in Vietnam with 1,170 firms, followed by Binh Duong with 715, then Hanoi.* REAL ESTATE MARKET The demand for furniture is closely related to the market performance for the real estate, hospitality and construction industries, where there is a need to supply furniture and furnishings for interior and structural works. According to Phan Dang Chuong, deputy general director of ERNST & Young Vietnam, in the past five years there have been about 400,000-500,000 townhouses and high-class apartments raised in Vietnam.* On average, each apartment uses at least 100-200m Vietnamese dong for interior furnishing and design, which means there is about 100,000bn Vietnamese dong for this particular demand. However, Vietnam has seen a drop in commercial housing demand as of 2023. Real estate market statistics from Vietnam’s Ministry of Construction reported that commercial housing development projects in Q1 of 2023 have 14 projects with nearly 6,000 units. The number of projects is about 50% compared to Q4 of 2022 and is about more than 63% of the same period in 2022. “The supply of commercial housing in Q1 2023 is still limited and tends to decrease compared to Q4 2022,” commented the Minister of Construction.* The Ministry of Construction further said that although the market fluctuates a lot, apartments still continue to attract the attention of the target group with real housing needs. The number of new apartment projects opened for sale in Q1 2023 is not much, mainly from the mid-range and high-end segments, concentrated in Hanoi, Ho Chi Minh city, and Binh Dinh.* Statistics have also shown that the total transaction volume of Q1 2023 only reached more than 106,000 successful transactions, equalling about 65% compared to Q4 2022 and 61% compared to Q1 2022. In this, the number of successful transactions of land plots decreased significantly, and successful transactions of apartments and individual houses increased sharply; there were more than 39,000 successful transactions for individual houses and apartments, while land plot has more than 67,000 successful transactions.* As for the hospitality sector, Savills Vietnam’s report said that in Q1 2023, hotel guests increased by 220% year-on-year, reaching 1.1 million arrivals, and 339,000 domestic guests increased by 21% year-on-year. The number of international visitors saw an increase of 1,400% year-on-year to 712,000, presumably after borders have reopened.* The tourism sector is making a return, which means the need to supply furniture and woodworking equipment is enhanced to meet the sharp increase in demand for hotel projects supporting the tourism industry. Assessing the market outlook, Matthew Powell, director of Savills Hanoi, described that the Hanoi market in 2023 is expected to have two new projects with a total of 471 rooms. From 2024 onwards, there will be 66 new projects with 11,123 rooms. Of these 68 projects, the number of five-star hotels accounts for 61%.* He added: “This is a positive addition to the hotel supply, especially luxury hotels in Hanoi. In addition, the appearance of branded apartments as well as three- to four-star hotels in the inner city and surrounding areas will help increase the diversity of existing tourism products on the market assessment.” Source:Panels & Furniture Asia.

Taipei Building Show grand opening on Dec 07, in Nangang Exhibition Hall

2023-12-07

The "35th Taipei Building Show was held grandly on December 7, using the first and fourth floors of Hall 1 of the Nangang Exhibition Hall. Louquan District is the largest, most international and professional construction and building materials exhibition in Taiwan. The "52nd Architects' Day Celebration Conference" and the "20th Taiwan Architecture Forum" will be held simultaneously during the exhibition, which will attract architectural professionals, designers, manufacturers, suppliers, traders and the public from all over the world. Expect great things. The exhibition is divided into nine areas based on product attributes, namely "Doors, Windows and Hardware and Building Materials Area", "Green Building Green Building Materials Area", "Smart Building Area", "Comprehensive Building Materials Area", "Furniture and Decoration Area", "Bathroom Ware" Kitchenware Area", "Lighting Area", "Floor, Wall Materials and Decorative Building Materials Area" and "Overseas Exhibition Area", in addition to domestic high-quality building materials related companies, there are also exhibitors from the United States, Spain, Japan, Thailand, Singapore, China, and Malaysia. Nine countries including China, Indonesia and South Korea participated in the exhibition, as well as many international distribution agents. Nearly 500 exhibitors used more than 2,300 booths to display the latest and highest quality building materials products and construction methods and technologies from all over the world.

LIGNA with new event dates from 2027 onwards

2023-12-07

Hannover. From 2027, LIGNA will be setting a new strategic course in terms of dates. It will leave the usual event period over Ascension Day and from 2027 onwards will continue to be held in the odd-numbered years – but detached from the public holiday – in spring in Hanover, Germany. This was a joint decision by the LIGNA organizers, Deutsche Messe AG and VDMA Woodworking Machinery after intensive discussions. LIGNA 2027 will be held in Hanover from Monday, May 10 to Friday, May 14, and LIGNA 2029 from Monday, May 14 to Friday, May 18. The date of LIGNA 2025 over Ascension Day from Monday, May 26 to Friday, May 30 remains unchanged. Stephanie Wagner, Head of LIGNA, Deutsche Messe AG: “The decisive factor for LIGNA’s rescheduling from 2027 is the change in visitor behavior on Ascension Day and the following Friday as a bridge day.” A look at LIGNA's history shows that the trade fair was originally deliberately scheduled for Ascension Day week. The visitor focus on the public holiday was particularly on the skilled trades sector. “The leisure behavior of visitors has changed significantly in recent years. Thursday as a national public holiday and the following Friday as a bridge day are very popular as an extended vacation weekend, particularly by German visitors from the skilled trades sector, but also from the industry. Our visitor analyses clearly confirm this. As the world's leading trade fair for the woodworking and wood processing industry, we want to present our exhibiting companies with a high quality and quantity of national and international visitors on all five days of the fair – from all visitor target groups. From our perspective, this will only be possible if LIGNA leaves the Ascension week in future,” explains Wagner. VDMA Woodworking Machinery considers a new event period for LIGNA from 2027 onwards to be of fundamental importance. Dr. Bernhard Dirr, Managing Director VDMA Woodworking Machinery, Frankfurt am Main: “Efficiency is the key to a successful trade fair these days, and that applies to exhibitors and visitors alike. Time at a trade fair is valuable and needs to be used optimally. This is best achieved when the number of visitors is spread as evenly as possible over all days. This is exactly what the new LIGNA date ensures.” Making even greater use of international visitor synergies with interzum in Cologne When rescheduling a world-leading trade fair such as LIGNA, many different aspects and complex interrelationships have to be evaluated and taken into account. Especially with regard to the international LIGNA visitors from overseas, the proximity of dates to interzum in Cologne is a factor. The two trade fairs are traditionally held close to each other and together attract international visitors overseas, for example. And it is precisely these visitors who benefit from the proximity of the two thematically complementary trade fairs when planning their travel and visits. Stephanie Wagner: “We are scheduling LIGNA 2027 before interzum. From 2029, LIGNA will then run parallel to interzum. By taking this step, we will enable all visitors to visit both trade fairs in a balanced and time-efficient manner and thus contribute to the average length of stay of an international visitor at European trade fairs, which according to our analyses is around 2.5 days.” LIGNA dates 2025 to 2029 at a glance: LIGNA 2025: Monday, May 26 to Friday, May 30 in Hanover (unchanged). LIGNA 2027: Monday, May 10 to Friday, May 14 in Hanover (new). LIGNA 2029: Monday, May 14 to Friday, May 18 in Hanover (new). About LIGNA The world’s leading trade fair for the woodworking and wood processing industry is jointly organized by Deutsche Messe and VDMA Woodworking Machinery. It showcases the entire range of products and services for the primary and secondary industries – tools, machines and systems for custom and mass production, surface technology, wood-based panel production, sawmill technology, energy from wood, machine components and automation technology, as well as machines and systems for forestry technology. Source :LIGNA

CIFM/interzum guangzhou 2024 – “Surpass” as the new motto of the show

2023-11-30

CIFM/interzum guangzhou is THE premier event for the Asian furniture manufacturing sector and is scheduled to be held from 28th to 31st March 2024 at the Canton Fair Complex. Every year, the event in Guangzhou brings together the world's leading players in wood processing, furniture production and interior design. Surpassing "Surpass" is the motto of this year's exhibition. Companies that want to remain competitive, grow and take a leading position in the dynamic, changing market of the furniture industry must rethink their strategy. They need to rethink old patterns, reposition themselves and overcome boundaries in the process. Great line-up in 2024 CIFM/interzum guangzhou 2024 aims to create a strong global network that covers the entire supply chain. This year's event will feature around 200 prominent global brands. Halls 14.1 and 15.1 are of major significance showcasing outstanding upholstery components and textiles, together with the latest developments in interior decoration, surfaces, power mechanisms, wood, panels and adhesives. Well-known Italian brands such as Diviemme, Furnital, Italiana Ferramenta, Permo, Pessotto Reti, Sige, UNIONPLAST and VIBO, will be exhibiting their entire range of top-quality fittings. A diverse variety of materials representing different global upholstery styles will be showcased in the materials section. Established global brands in the surface materials industry, including Schattdecor, Rehau, impress, Interprint (IP), LamiGraf, Renolit and Munksjö, will offer comprehensive solutions to meet different sourcing requirements. The American Hardwood Export Council and American Softwoods will demonstrate their expertise in the wood industry. SCM, Paolino Bacci, Biesse, HOMAG, Leitz and Freud are among the leading manufacturers of woodworking machinery taking part in CIFM/interzum guangzhou. interzum guangzhou 2024 is strengthening its ties with the European woodworking machinery sector through an exclusive partnership with the European Federation of Woodworking Machinery Manufacturers (EUMABOIS). EUMABOIS has integrated the exhibition into its international network and will support the next interzum guangzhou in order to create an innovative platform for the woodworking machinery industry, providing evidence-based solutions and turning evidence into action. Awards for excellence The interzum guangzhou Award has a strong and widely recognized industry standing. Every year, exceptional products are curated by a select panel of judges. Renowned international material and design experts such as Dick Spierenburg, Sascha Peters and Kristina Meyer will be on the panel for the upcoming 2024 edition. The interzum guangzhou Award is poised to set a new benchmark for outstanding companies and products. Visitor pre-registration for interzum guangzhou is now open. Please visit www.interzum-guangzhou.com for more information or to register.

Taiwan's woodworking machinery exports are overly concentrated in a single market, with a 40% decline in the first three quarters of 2023

2023-11-25

According to the report of Taiwan Institute of Economic Research, top five Taiwan woodworking machinery exporting countries are the United States, China, Canada, Australia and Japan from January to September 2023. Due to the impact of the U.S. Federal Reserve's strong interest rate hike, the local real estate boom has declined, and my country's woodworking machinery export market has been overly concentrated in the United States, resulting in an annual decline of more than 40% in the value of my country's woodworking machinery exports from January to September 2023. It can be found from the chart that compared with the same period last year, the total export volume which fell by 40.93%, the top four exporting countries include the United States, which fell by 40.93%, China fell by 30.78%, Canada fell by 23.64%, Australia fell by 24.55%, all fell by more than 20 percentage points, and only Italy rose by 24.38%.

THE HIDDEN DANGERS: THE STABILITY OF CLOTHING STORAGE UNITS

2023-11-15

During the last months the furniture sector had to deal with a particularly delicate topic that has generated quite a bit of concern throughout; we are talking about the stability of clothing storage units and the legislative requirements that have recently been introduced for the US market. Such measures have been published referring precisely to the criticality regarding the stability of certain furniture products that are considered to be one of the most frequent causes of accidents in the home. According to the figures reported in the US Federal Register (Vol.87 No 226 Nov 2022), in the period between January 2000 and April 2022, in the United States, more than 230 fatal home accidents directly or indirectly caused by overturning of clothing storage units occurred; of these nearly 200 involved children. These numbers are absolutely dramatic, but, to the above-mentioned figures, many other accidents should be added, fortunately less serious, but which regrettably always involve children in the vast majority of cases (over 70%). Numbers that are obviously considered unacceptable by the American government authorities, who therefore decided to start a legislative path to ensure the safety of furniture by eliminating or at least reducing the causes that lead to its tipping over in domestic environments. The activity was coordinated by the CPSC-Consumer Product Safety Commission, the US federal agency in charge of consumer product safety, which also undertakes precise analyses to assess the evidence of potential hazards caused by or related to the use of different products. An activity that also includes the publication of mandatory technical standards, information and education of both manufacturers and end-consumers as well as other activities such as the possible recall of non-compliant products from the market. The CPSC therefore began to investigate the specific causes that had led to or anyway favors the tipping of clothing storage units in use, considering first of all the technical standard in force in the United States, i.e. ASTM F2054-19. In addition to the American standard, CPSC also considered the general worldwide standardization landscape on this issue, including an analysis of other documents such as EN 14749, ISO 7171, as well as a similar Australian standard. At the end, none of the standards examined were considered adequate to prevent the incidents that occurred in the American market. After this initial analysis, CPSC therefore determined that it necessarily had to adopt a new test method to meet the safety requirements expressed by the American government authorities. In 2022, the “Final Rule 16 CFR 1261” was published in the US Federal Register, which contains guidance on the safety standards to be considered mandatory for furniture and furnishings that fall under the CSU-Clothing Storage Units definition. The aim of the provision is to eliminate, or at least to reduce, the risks of furniture tipping over by complying with certain requirements that can be verified by laboratory tests and made clear to the end user by specific labelling. A constructive discussion with the American Home Furnishing Alliance (AHFA-American Home Furnishing Alliance) started on this first document which led to an evaluation of its practical effects on marketed products and its actual effectiveness. In parallel to what the CPSC was doing, however, there was a second initiative that at the legislative level was called the STURDY Act (Stop Tip-overs of Unstable, Risky Dressers on Youth Act). This study considered to maintain the existing standard, ASTM F2057, but checking whether it could be updated to meet the safety requirements expressed by the American authorities. The manufacturers were much more in favor of this second option and the following discussions finally led to a compromise between the two strategies. A key step at this point was the review that CPSC did on the new version of ASTM F2057-23, establishing that it met the safety requirements and became the mandatory reference for CSUs at this point. The requirements in the updated ASTM standard are mandatory for furniture produced from 1 September 2023 and intended for the US market. The standard specifies to verify the stability of CSUs complying various laboratory test: stability test to simulate a load in the cabinet, stability test to simulate a dynamic horizontal force, stability test to simulate a child’s use of a clothing Storage Unit placed on a carpet, interlock test (mechanism allowing only one drawer to be opened at a time); testing of anti-tilt systems (ASTM 3096, standard updated in 2023 as well). ASTM F2057-23 applies to free-standing clothing storage units, including but not limited to dressers, chests of drawers, cabinets with drawers and/or doors, with the following characteristics: cabinet height ≥ 68.6 cm; weight ≥ 13.6 kg; loadable volume ≥ 90.6 dm3. Bookcases, office furniture, dining room furniture, jewellery cabinets, under-bed drawers, laundry storage units, furniture whose use is not intended for the bedroom, wall-mounted furniture are not included.