"Made in Taiwan" had special meaning when I was a kid (too long ago to count on one's digital appendages). It was a phrase generally disdained as implying, both poor quality and disloyalty. As labor costs in the U.S. rose throughout the last century, reliance on foreign goods, particularly clothing, furniture, and household items, seriously impacted American manufacturers, putting many factory workers out of a job. "Buying American" was considered the patriotic thing to do, and the smart thing to do, as foreign-made products were considered to be of lesser quality.
Over time, however, as Asian manufacturers matured, the quality argument no longer held up, and the Law of Supply and Demand won out. Without externally imposed tariffs, lower costs mean lower prices, and that will always woo consumers, and so, imported Asian goods became staples of the American shopper's diet. This was nowhere more true than in the home furnishings industry, where buyers could save a bundle by going with imports.
Something else happens over time, however, as manufacturing thrives in a country. Japan, Taiwan, and China have all seen their labor, equipment, and property costs rise as the fruits of their laborers gradually transformed poverty-stricken rural communities into busy commerce centers. "Cheap labor" never stays that way for long, and for that reason, new sources of lower-wage employees must be sought.
Today's up-and-coming manufacturing center, at least for wood furniture, has turned to Vietnam. Since 2001, Vietnam's share of the U.S. furniture market has risen from a negligible 0.1% to a strong second behind 1st-place China, and is now at 8.3%. China is still far and away the market leader here, providing almost 64% of our imported furniture, a number that has steadily risen, and almost doubled from the 37% seen in 2001. There is no reason to doubt China's continued dominance in this market, however, Vietnam already has double the share of the next biggest competitor, Malaysia, and towers over once-powerful Taiwan, which has fallen to one-third of its turn-of-the-century share, with only 2.4% in 2008.
Can Vietnam continue her rise to the top? That will depend on her response to a number of challenges currently faced. Besides cheap labor, Vietnam is not particularly well-endowed in some of the other inputs of furniture manufacture. Vietnam does not presently have a strong domestic timber industry, and imports 70-80% of the raw materials used. She also lacks the chemicals needed to treat wood products bound for the home furnishings market, and the textiles used for seat cushions and coverings are not readily available there.
Despite these obstacles, however, Vietnam benefits from the high U.S. tariff on Chinese wood product imports, and from a reputation for quality craftsmanship and unique design details. To further her cause, Vietnam has begun embracing her role as a future furniture super-power by playing host to the annual furniture expo in Ho Chi Minh City, the HCMC International Furniture and Handicraft Fair and Exhibition.
Clearly, Vietnam has plans for becoming the new "Made in..." here in the U.S., its primary foreign market. And if Americans continue to "Buy Vietnamese" at the rate we have been, rewarding her with an almost exponential rise in sales, she just might make it.
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