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According to Vietnamese media reports on March 13, many furniture factories in Vietnam are facing a sharp decline in orders. According to Huacheng Import and Export Data Observation, the number of orders has been decreasing since April last year. Since 2023, orders from Vietnamese furniture manufacturers have fallen by more than 20%, a figure that far exceeds expectations. Many enterprises have even experienced large-scale layoffs. Some experts said that the government needs to introduce new policies to support enterprises, create jobs, and promote consumption in the Vietnamese market to prevent large-scale layoffs in the furniture industry due to the depletion of export orders.

Nguyen Liem, head of the Pingyang (Provincial) Furniture Association and chairman of the Linyue Wood Industry Company, said that his company has retained more than 1000 workers, but has now reached the limit. "We can only hold out until the end of the third quarter," he said. If the downturn in orders continues, it is likely to face the risk of bankruptcy. Many Vietnamese furniture manufacturers also face the same problem, as reported by Huacheng Import and Export Data Observation.

Some furniture manufacturers stated that although the government has provided some support for furniture companies, these support is not clear enough and it is difficult to apply. He believes that the downturn in orders will continue for some time, and the subsidies provided to workers are not practical. However, if companies are allowed to delay the payment of social insurance premiums to workers for 6 to 12 months, they will have the funds to pay wages.

In addition, the government should also introduce more new policies to support enterprises, create jobs, and promote consumption in the Vietnamese market to prevent large-scale layoffs in the furniture industry due to the depletion of export orders. "Enterprises most want to retain workers. They will only take layoff measures when they are truly unable to handle financial issues. The policy of supporting factories will also help workers." The Vietnamese furniture industry is one of Vietnam's main export industries, contributing a large amount of GDP and employment opportunities. According to Huacheng Import and Export Data Observation, Vietnam's furniture exports have grown rapidly since 2019, reaching $3 billion in 2022, becoming one of Vietnam's main export commodities.

However, since 2023, the situation has started to turn sharply downward. According to Huacheng Import and Export Data Observation, from January to February 2023, Vietnam's furniture exports amounted to 702 million US dollars, a decrease of 5.5% compared to the same period last year, and a decrease of 12.3% compared to the same period last year. Vietnam's furniture industry is also seeking to expand its domestic market to mitigate the impact of declining export orders.

However, due to the relatively low demand for high-quality furniture in the Vietnamese market, the development of the domestic market still faces many challenges. In short, the Vietnamese furniture industry is facing serious challenges. The government needs to introduce more support measures to help enterprises overcome difficulties, while also looking for new market opportunities to bring new development opportunities to the furniture industry. Huacheng Import and Export Data Observation Report.