Furniture Companies in Vietnam Are Opening New Stores in The Country

Ho Chi Minh City,Vietnam:Furniture companies in Vietnam are opening new stores in the country,even though the domestic sales growth is expected to fall 15 to 20 percent from last year.

Two major furniture companies in Ho Chi Minh City,for example,have opened two stores this month despite the recession.

In addition,Index Living Mall–a shopping mall selling Thai furniture and home appliances–will open three more branches in Ho Chi Minh City,following the successful opening of its first 7,000 sq m store in District 4.

"In the first two quarters of this year,we reached our growth targets.In the last month of the second quarter,which was the difficult time for the furniture market,we also exceeded the target,"said marketing director of Index Living Mall,Nguyen Viet Linh.

The company plans to open 10,000 sq m stores in the northern and central regions,and is currently seeking a land lot to open one store.

Other companies such as Chi Lai and Klassy also have plans to expand.

Klassy Company opened a store in District 1 in Ho Chi Minh City recently,bringing its total number of stores to five.The store displays furniture imported from Italy,Hong Kong and England,and covers an area of 2,000 sq m.

Although the market faces difficulties,Klassy decided to expand its business to take advantage of opportunities before the economic recovery,according to general director of Klassy,Le Thi Thanh Hai.

Ms Hai said that to maintain the company's growth of 40 percent per year,the company would open a 5,000 sq m store in Dong Da District in Hanoi this year.In 2013,more stores will open in Hanoi,Da Nang and Hai Phong.

These companies appear to be following the trend of opening large stores.

"Our aim is to open large stores so that our customers can choose from many kinds of home appliances and furniture,"said Ms Linh.

Ms Hai of Klassy Company said that opening stores was easier now because good sites were available for cheaper prices.

Director of An Cuong Trade Company,Le Duc Nghia,said that customers had become more fastidious about their purchases.

"Because customers want to see and sample before making a final decision,it is important to have impressive store displays.Big stores save customers time because they can buy many things in one place.Although companies might face losses in the beginning,the trend of opening big stores will continue,"said Mr Nghia.