Hukon leverages strategic partnerships for competitive edge

Liao Chuawu, founder and CEO of Hukon Vietnam

As a Singaporean brand, what inspired Hukon to invest in Vietnam?

My family has a longstanding history in the furniture industry. After numerous visits to Vietnam for both business and leisure, I developed a deep appreciation for this country. In 2019, I decided to invest in Vietnam. The timing seemed ideal due to substantial support from the government and local agencies in Binh Duong, coupled with a competitive advantage in the global market, particularly in exports to the United States, which is our primary market.

Vietnam's distinctive local culture and diligent workforce represent substantial advantages. These elements have facilitated Hukon's establishment of four factories, and the subsequent expansion of production and market reach within a span of just five years.

Hukon specialises in the production of kitchen cabinets. What is the export potential for this product segment?

Hukon exports approximately 200 containers each month. Kitchen cabinets are fundamental to nearly every household, rendering them less vulnerable to economic downturns compared to many other products. The current demand is on an upward trend, and we anticipate further growth in the coming years, particularly with increased exports to the US, our primary target market. Additionally, the recent US election and the resulting economic stability are expected to bolster consumer confidence, further driving demand for our products.

Has Hukon's strategic focus enabled it to circumvent the industry-wide challenges of 2023, such as order shortages?

Although Hukon experienced a slight sales dip, our resilience was due to proactive measures, not solely from the product line itself. By analysing the rapid growth and volume of previous orders from partners, we anticipated a potential order shortage and consequently made the necessary preparations in advance.

This proactive approach ensured that by 2024, as orders started to recover, we were prepared. Although we have not yet reached our peak export levels, we anticipate a growth rate of 10-15 per cent this year.

The production line for kitchen cabinets at Hukon

Could you elaborate on Hukon's experience in developing a proactive business model?

The fundamental value of a business is derived from multiple factors. However, central to any business model is the development and management of relationships. Solid connections with employees contribute to team cohesion, robust partnerships result in long-term agreements, and strong relationships with suppliers offer essential support.

Hukon has been privileged to cultivate strong relationships, allowing us to maintain agility within an ever-evolving market.

Please provide a specific example of establishing strong partnerships.

Our paint supplier, AkzoNobel, serves as a valuable partner. Beyond developing our surface painting processes, they provide guidance on production enhancements. Their experts collaborate with us on-site, overseeing everything from raw material preparation to production and addressing any issues that arise.

As a contract manufacturer for global brands, we must meet evolving customer demands. AkzoNobel's experts collaborate with Hukon’s research and development team on new designs to develop solutions. By leveraging AkzoNobel’s expertise in surface finishes alongside Hukon’s production capabilities, we achieve both efficiency and a competitive advantage on a global scale.

Experts from AkzoNobel collaborate with Hukon's research and development team to research new surface solutions

Cabinet manufacturers around the world today need to adapt to changing consumer preferences, which requires regular design updates. How does Hukon address this need?

This demand compels cabinet manufacturing companies to adopt a more dynamic approach. Instead of waiting for customer requests, we proactively develop new designs, anticipate emerging trends, and collaborate closely with customers on concepts that align with future market requirements.

One significant trend impacting the industry is the growing demand for sustainable furniture. With changing import regulations and evolving consumer preferences, sustainability has become a primary concern. To address this demand, businesses must adopt environmentally friendly practices internally and ensure that sustainability is maintained throughout their supply chains. Hukon is committed to complying with all import market requirements and expects our partners to uphold these same standards. Therefore, we have selected AkzoNobel as our provider for paint and surface solutions.

The technical team from AkzoNobel is permanently stationed at Hukon's workshop, providing an additional resource advantage for furniture manufacturers

Given these benefits, what strategic plans does Hukon have for Vietnam in the future?

Hukon has fully booked orders for the first half of 2025, indicating a strong recovery in the global cabinets market. The opportunities for cabinet companies are abundant, and I am confident that Hukon will continue to grow and expand its operations in Vietnam.

AkzoNobel sets standard in consumer electronics with sustainable and innovative coating solutions Maximilien Schréder, commercial director of the Global Consumer Electronics Coatings and Automotive and Refinish Coatings North Asia, AkzoNobel, highlights the company's strategic emphasis on sustainability through the adoption of sustainable solutions such as waterborne technology, catering to the global and Vietnamese demand for durable, high-quality consumer electronics coatings.

AkzoNobel’s investment for sustainable growth in South Asia-Pacific Earlier this month, AkzoNobel inaugurated new production facilities at its Bac Ninh site to bolster its leading position and enhance sustainable manufacturing in the region. Jeff Jirak, managing director of AkzoNobel's Powder Coatings business, and Şirvan Canıtez, regional commercial director of Powder Coatings in South Asia-Pacific, talked to VIR's Linh Le about the company's strategic plans and sustainable works.

AkzoNobel Wood Finishes at forefront of quality and sustainability in furniture industry AkzoNobel’s Wood Finishes Division is at the forefront of transforming Vietnam’s wood and furniture industry towards sustainability with its high-quality products and innovative solutions.