**Vietnam**: Vietnam is rapidly expanding as a key furniture manufacturing hub driven by growing international demand and investment. Success in sourcing requires understanding its relationship-focused, OEM model, precise product specifications, and professional collaboration, as outlined by Henrik Pontoppidan of S2U Design.
Vietnam is rapidly emerging as a manufacturing powerhouse within the global furniture industry, driven largely by increasing demand as companies look to diversify production away from China. Henrik Pontoppidan, Director of S2U Design, recently outlined key insights into how businesses seeking to source from Vietnam can successfully navigate this dynamic market.
Once characterised by post-COVID urgency, Vietnamese factories are now operating near full capacity, spurred by both growing international orders and the investments of Chinese, Korean, Thai, and Taiwanese manufacturers establishing modern facilities within the country. This surge in activity makes Vietnam an attractive destination for sourcing, but Pontoppidan emphasises that understanding the fundamental differences between Chinese and Vietnamese manufacturing models is essential for success.
At the heart of these differences lies the contrast between transactional and relationship-driven approaches. China’s sourcing model is largely transactional: buyers select from catalogues, place orders, and receive products with minimal ongoing interaction. Vietnamese manufacturing, by contrast, is predominantly OEM-based and strongly relationship-oriented. Factories in Vietnam do not generally operate from ready-made catalogues; instead, they develop products collaboratively with buyers. Showrooms tend to feature custom designs rather than stock items, reflecting an emphasis on tailored client partnerships.
Pontoppidan explains that factories in Vietnam prioritise committed, long-term customers. “If you approach sourcing with a transactional mindset—sending a photo and asking, ‘How much?’—you’re likely to be filtered out of the factory-perceived top-tier customer group,” he told Big Furniture Group. Prospective buyers lacking a serious, clear brief often find their inquiries handled by junior sales staff rather than key decision-makers involved in product development and negotiation.
This context highlights the role of firms like S2U Design, which facilitate effective engagement between buyers and manufacturers. “We don’t just find you a factory or obtain a quote for you – we get you in front of the right factories, the right people, and ensure you’re taken seriously,” Pontoppidan noted. The company takes responsibility for preparing detailed professional briefs, clarifying product specifications, and managing communications to help clients secure the best manufacturing partners.
Pontoppidan outlines that obtaining a meaningful price quotation in Vietnam is a complex process requiring precise definition of details such as materials, construction methods, finishes, packaging, and logistics. Factories will produce exactly what they are instructed to, but unlike in China, many operational specifics are not standardised across factories here. This means any failure to specify important product or packaging features could result in unexpected issues.
He further adds that success in Vietnam requires investment in both time and effort. “If your goal is to develop a unique OEM product, you must accept that it requires investment—both in time and resources. There’s no quick fix, but the effort pays off,” Pontoppidan said. Buyers expecting immediate quotes or off-the-shelf solutions may face frustration given the relationship-based, custom manufacturing model.
The most reliable Vietnamese factories maintain strict selection criteria for their customers and do not compete aggressively for business, since their capacity is constrained. Therefore, factories look for genuine, committed partners. Engaging casually will likely prevent access to the senior management who make key decisions on manufacturing terms and capabilities.
S2U Design offers a suite of services to help buyers overcome these challenges. These services include factory selection and evaluation, detailed technical design documentation, on-site factory visits with senior executives, negotiation of terms, and ongoing production oversight and quality control. According to Pontoppidan, the value of such engagement typically pays for itself after only one or two shipments through smarter sourcing, cost efficiencies, and reliable lead times.
With Vietnam’s top manufacturers increasingly in demand, Pontoppidan signals a sense of urgency for companies wishing to tap into this production hub. He encourages buyers serious about establishing successful supply chains in Vietnam to engage expertise in navigating the country’s bespoke manufacturing environment.
For businesses exploring opportunities in Vietnam’s furniture manufacturing sector, the insights shared by Henrik Pontoppidan and S2U Design provide a comprehensive guide to understanding local market practices, emphasising the importance of relationship-driven sourcing, detailed planning, and professional collaboration.
Source: Noah Wire Services
