Rosy outlook for kitchen cabinet firms

Kitchen cabinets have been an important export for the Vietnamese wood industry. What's your view on the continued growth potential of this segment?

The export of kitchen cabinets has seen significant shifts due to changes in international manufacturing strategies. Many end buyers in the US have moved their manufacturing facilities from China to Vietnam, resulting in substantial investments. Although the market experienced a downturn in 2023, it is expected to grow in the mid to long term as economic conditions stabilise and the Federal Reserve's measures support the US economy, housing, and associated markets.

Gregoire Mercie, regional commercial director at Wood Finishes & Adhesives at AkzoNobel Asia

With orders returning after a temporary market freeze, are there new requirements for manufacturers?

The major change now involves increasing sustainability requirements. Nearly every market demands products that comply with the latest environmental regulations. Manufacturers of both interior and exterior furniture must meet these standards.

Additionally, manufacturers look for products that boost productivity and cost efficiency, thereby enhancing their competitive advantage. These demands drive AkzoNobel to continually improve both efficiency and quality. Choosing suppliers who offer higher quality helps businesses reduce overall production costs.

Given the rapid changes in consumer behaviour, where cabinets choices often vary with seasons or styles, is maintaining quality still crucial?

AkzoNobel collaborates with both foreign and domestic high-end furniture and cabinet manufacturers. In the kitchen cabinet segment, for example, clients expect consistent operational excellence from their suppliers. At AkzoNobel, quality remains our top priority. We strive to innovate continuously across all aspects: sustainability, quality, productivity, and especially design.

As mentioned earlier, reducing costs remains a priority for manufacturers. We believe innovation will address both quality and cost.

How does AkzoNobel support kitchen cabinet manufacturers in Vietnam?

AkzoNobel's focus extends beyond furniture to include the cabinet industry. We believe in creating strategic partnerships rather than merely supplying products. As one of the few global paint suppliers operating in Vietnam, we support businesses throughout their journey from design to production and market entry, whether activities occur in Vietnam or design studios in the US or Europe. Our global experts are ready to work directly in furniture workshops, assist with surface design, and provide after-sales support for specialised issues.

AkzoNobel has established global colour research studios, particularly in major furniture hubs like the US, helping manufacturers stay ahead in colour trends and surface design. Could you highlight the unique aspects AkzoNobel offers to furniture and cabinet manufacturers?

One key distinction is AkzoNobel’s technical teams working directly onsite with furniture and cabinets producers, ensuring precise execution of surface techniques and application processes. Historically, cabinets primarily featured traditional clear finishes, but there is a rising demand for pigmented colours, catering to modern styles favoured by the younger generation.

As a corporation committed to sustainable development, AkzoNobel reduced construction times to save both energy and manpower for businesses.

What are your projections for the kitchen cabinet market by year's end?

Vietnam's kitchen cabinet export market is expected to grow by about 8 per cent in 2024 compared to last year. However, AkzoNobel experienced over 50 per cent growth in this segment during the first half of 2024, indicating that we are outpacing the market and that our solutions are highly effective.

As the US market stabilises, Vietnamese cabinet manufacturers will continue to benefit from favourable conditions. AkzoNobel identifies Vietnam as a crucial supply hub for the international kitchen cabinet market. Consequently, we are increasing investments in production and research and development to provide maximum support for manufacturers. This strategy supports mutual growth for us and our customers.

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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.