Business

Ample room for Vietnamese furniture, handicraft exports to EU

Vietnamese products, particularly home and outdoor décor, handicrafts, fashion, gifts, and lifestyle goods enjoy ample growth potential in the EU market thanks to its strong purchasing power, diverse demand, and high market openness.

Vietnamese furniture, handicrafts see strong growth potential in EU (Photo: thoibaotaichinhvietnam.com)
Vietnamese furniture, handicrafts see strong growth potential in EU (Photo: thoibaotaichinhvietnam.com)

Ho Chi Minh City (VNA) – The European Union (EU) market still offers significant growth opportunities for Vietnamese furniture and handicraft exports, though it requires strict compliance with supply chain traceability and sustainability standards.

This was highlighted at a seminar on accelerating exports of contemporary lifestyle products to Europe, held on August 14 by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), in coordination with the Vietnamese Business Association in France and the French Chamber of Commerce and Industry in Vietnam.

ITPC Deputy Director Ho Thi Quyen noted that Vietnam and France have substantial potential for strengthening economic, trade, and investment ties.

France was the first EU nation to establish a comprehensive strategic partnership with Vietnam and is its fifth-largest EU trading partner, with bilateral trade reaching 5.42 billion USD in 2024, up 12.9% year-on-year. France also ranks 16th among 147 foreign investors in Vietnam, with 700 active projects worth nearly 4 billion USD, still modest compared to potential.

The EU, especially France, is a promising export market for Vietnam, with the EU-Vietnam Free Trade Agreement (EVFTA) continuing to offer tariff advantages for Vietnamese businesses after five years of implementation.

Vietnamese products, particularly home and outdoor décor, handicrafts, fashion, gifts, and lifestyle goods enjoy ample growth potential thanks to the market’s strong purchasing power, diverse demand, and high market openness.

However, exporters face challenges including global tariff tensions, new EU sustainable product regulations (ESPR), stricter supply chain certification requirements, and high logistics costs.

To maintain competitiveness, firms should obtain certifications such as FSC, BSCI, ISO 14001, and circular material credentials; use certified or recycled wood; adopt clean production technologies; focus on creative designs for compact living spaces; and actively join trade promotion events, especially in Europe.

Lawyer Chu Lan Phuong of Ceven Law stressed the need for exporters to understand EU product safety rules (GPSR), product liability directives (PLD), and related regulations.

She advised diversifying distribution channels from retail chains and e-commerce to trade fairs and standardising product design, labeling, and intellectual property protection from the outset.

Source of Asia Market Development Director Tra Le added that Vietnamese firms should export not just products but also cultural identity. With over 60% of urban EU consumers preferring handmade over mass-produced goods, and strong demand for bamboo and rattan products, opportunities are clear. Yet competition from large-scale, low-cost producers like China and India, coupled with stringent EU requirements on chemical residues, anti-deforestation, traceability, and ESG practices, means exporters must tightly manage domestic supply chains and craft compelling brand stories to add value./.

VNA
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