Vietnam furniture industry affected by Novel Coronavirus Pneumonia

Vietnam's furniture chain is incomplete and requires many components to be imported from China.

As a close neighbor of China, Vietnam has undertaken a lot of furniture manufacturing from China in recent years.
Although only 12 cases have been diagnosed in Vietnam, compared to its population of about 100 million. But the impact of this epidemic on Vietnam is by no means a measurable number on paper, especially for Vietnamese household appliances.
Kaiser Furniture from Taiwan, China Province has been rooted in the Vietnamese furniture town Binh Duong Province since 2004, and 95% of its furniture is sold to the United States.
A person in charge of Kaisheng Furniture said in an interview with the Washington Post that the factory currently employs about 120 Chinese employees, of which 50 are from Hebei Province. Earlier, to celebrate the Chinese New Year, a large number of Chinese employees chose to return to China to reunite with their families.
"They (referring to Chinese employees) are all middle or senior management in the factory," Kason Furniture said. "Including the core of the production department, the budget department, and the purchasing department."
At present, Vietnam has suspended the issuance of visas to Chinese citizens, and even if Chinese employees of Kason Furniture returned to Vietnam before this time, they still need to conduct isolated observation.
The epidemic not only made human resources in Vietnam's furniture industry worse, but even more deadly was a problem in the supply chain.
China is an important trading partner of Vietnam. Although Vietnam's furniture industry is already large, many components still rely on imports from China. Due to the outbreak, Vietnam is unable to purchase these key components, which means that production is blocked.
Take Kaisheng Furniture as an example. Although its wood is from North America, many special fiber fabrics and leathers have to be imported from China.
For other manufacturers, although they have not yet felt the pressure of Kason Furniture, they have made it clear that they are worried about this situation.
Ultimately, this concern will be transmitted to US distributors who import furniture from Vietnam. After all, Vietnam's furniture industry is very important to the United States, and Vietnam cannot do without China.

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