In the context of increasingly intense global competition, Vietnam’s wooden furniture industry is facing a critical question: should it compete on low prices or on product value?

In particular, as Chinese manufacturers continuously introduce low-cost furniture products into the international market, many Vietnamese companies feel pressured and consider lowering prices to stay competitive.

However, according to industry experts and market realities, this is not a sustainable strategy. Instead, Vietnamese enterprises should focus on value, design, and brand development rather than engaging in a race to the bottom on price.

Within this trend, Nghĩa Sơn Furniture stands out as a representative company pursuing a sustainable growth strategy, focusing on the mid-range segment and cross-border e-commerce.

Global furniture market and pressure from low-cost competition

Currently, the global furniture market, especially in the United States and Europe, is clearly segmented into different tiers.

Low-end segment – dominated by China

According to analyses from international e-commerce platforms, low-priced furniture products are primarily sourced from China, characterized by:

• the use of materials such as MDF, engineered wood, or bamboo
• simple designs and mass production
• very low prices, sometimes ranging from only $100–$150 per furniture item

For example, a bed frame can be sold for around $119 on e-commerce platforms. (Source: Vietnamnet)

This creates significant pressure for Vietnamese companies if they choose to compete directly on price.

High-end segment – limited market

On the other hand, the premium segment includes products that:

• use high-quality natural wood such as teak and oak
• feature exclusive designs
• can be priced at several thousand USD

However, this segment is relatively small and requires strong design capabilities and brand positioning.

Mid-range segment – the “gold mine” of Vietnam’s furniture industry

Between the extremes of low-cost and premium segments, experts agree that the mid-range segment represents the greatest opportunity for Vietnamese businesses.

Characteristics of the mid-range segment

This segment typically features:

• reasonable pricing
• good quality
• use of natural woods such as acacia, rubberwood, and plantation timber
• modern designs aligned with international tastes

This is often referred to as “affordable luxury” – premium aesthetics at a reasonable price.

The versatility and functionality of each furniture item are always top priorities for customers

Advantages of Vietnamese enterprises

Vietnam has several advantages to capture this segment:

• abundant plantation timber resources
• skilled labor force
• strong export manufacturing experience
• ability to handle large-scale orders

According to experts, by focusing on the mid-range segment, Vietnamese companies can remain competitive without lowering prices.

Nghĩa Sơn Furniture and its differentiated strategy

In this context, Nghĩa Sơn Furniture has clearly defined its direction: not competing on price, but focusing on product value and target markets.

Leadership perspective

Mr. Huỳnh Lê Đại Thắng – Director of Nghĩa Sơn Furniture shared:

“Don’t be afraid just because Chinese products are extremely cheap… Vietnam’s furniture industry will establish a strong position in e-commerce.”
(Source: Vietnamnet)

This viewpoint reflects a strategic mindset:

• avoiding price wars
• focusing on value and the right market
• leveraging Vietnam’s unique advantages

Transition to e-commerce – a strategic move

One of the key differentiators of Nghĩa Sơn Furniture is its shift from traditional manufacturing to cross-border e-commerce.

Leveraging global platforms

The company has expanded sales through platforms such as:

• Amazon
• Wayfair
• Walmart

These channels enable:

• direct access to end consumers
• reduced reliance on importers
• enhanced brand value

Building infrastructure in the U.S. market

After years of implementation, Nghĩa Sơn Furniture has:

• developed its own brand
• established 6 warehouses in the United States
• reduced delivery time to approximately 48 hours

(Source: Vietnamnet)

This is a crucial step in competing with global brands.

Optimizing products for e-commerce

A key factor in online furniture sales is designing products optimized for logistics.

New design trends

Products should:

• be flat-pack and easy to assemble
• be compactly packaged
• be optimized for international shipping
• be user-friendly for home installation

This helps reduce:

• shipping costs
• warehousing costs
• return rates

How Nghĩa Sơn Furniture adapts

The company has adjusted by:

• aligning designs with international standards
• optimizing packaging
• enhancing user experience

These are key factors for success on global e-commerce platforms.

E-commerce – a golden opportunity for Vietnam’s furniture industry

According to market data:

• 2025: e-commerce exceeds $6 trillion
• 2030 forecast: approximately $8.9 trillion
• accounts for over 20% of global retail

(Source: Vietnamnet)

Implications for the wood industry

This opens up major opportunities for businesses to:

• reach global customers
• build their own brands
• increase profit margins

Especially for furniture—traditionally dependent on showrooms and importers—this represents a transformative shift.

The industry’s major challenge: from outsourcing to branding

For many years, Vietnam’s wood industry has grown through:

• OEM manufacturing
• contract-based exports
• dependence on foreign brands

Limitations of the old model

• low profit margins
• lack of brand ownership
• high dependency on partners

New direction

Experts recommend:

• developing proprietary designs (ODM)
• building own brands (OBM)
• selling directly via e-commerce

Nghĩa Sơn Furniture is a prime example of this transformation.

Long-term competitive advantages of Vietnamese furniture

Even without competing on price, Vietnamese companies hold strong advantages:

1. Stable raw material supply

Plantation timber ensures cost control and sustainability.

2. Skilled craftsmanship

Vietnam has a highly skilled workforce in woodworking.

3. High adaptability

Vietnamese enterprises are flexible in adapting to market changes.

4. Position in global supply chains

Vietnam is becoming a global furniture manufacturing hub.

Nghĩa Sơn Furniture – a model of transformation

From a traditional manufacturer, Nghĩa Sơn Furniture has:

• integrated into global supply chains
• developed its own brand
• expanded direct-to-consumer channels
• built distribution infrastructure in the U.S.

This clearly demonstrates that:

👉 Vietnamese companies can compete globally
👉 Without relying on low-price strategies

Conclusion

In global competition, competing on low prices is not a sustainable strategy for Vietnam’s wooden furniture industry.

Instead, the right direction is:

• focusing on the mid-range segment
• enhancing product value
• building proprietary brands
• leveraging e-commerce

Companies like Nghĩa Sơn Furniture are paving the way to:

• move beyond outsourcing models
• build international brands
• elevate the global position of Vietnamese furniture

In the future, this will be the key for Vietnam’s wood industry to achieve sustainable growth and establish a strong presence on the global trade map.