Vietnam has overtaken the Philippines in the race for the global furniture market, said an industry group in the central Philippines city of Cebu, a main source of furniture for export.


Vietnam’s share of the global market rose to 0.78 percent in 2012, beating the Philippines’ share of 0.54 percent, the Filipino newspaper Inquirer quoted the Cebu Furniture Industry Foundation Inc. (CFIF) as saying in a report.

China remains as the world’s top supplier of furniture, with 11.9 percent.

Malaysia, Indonesia and Thailand follow and all have bigger market shares than the Philippines.

The CFIF cited several factors for the drop in Philippine furniture exports, including limited government support, increasing competition from Asian neighbors, dwindling supply of designers, design piracy, increasing cost of primary raw materials, lack of adequate capital among smaller producers, and unwillingness to invest in plant equipment.

It asked the Philippine government to come up with regulations to ensure that materials produced locally will meet international standards.

Last year, another report on the Philippine furniture industry recommended that the industry target midrange to high-end markets to avoid competing on price with China, Vietnam and other low-cost producers.

Source: Inquirer