Vietnam

By Becky Boswell Smith -- Home Accents Today, 1/1/2006 12:00:00 AM

American home accent companies have reached out to Vietnam to expand their lines and take advantage of the skilled workmanship they have found there.

Companies like John-Richard, which has been producing accent furniture for six years, and Toyo Trading, which has been sourcing ceramics and porcelains there for three years, say they are pleased with the quality of workmanship in Vietnam.

Spinning in a Vietnamese silk factory.	Vietnamese factory workers weaving chair backs.

Vietnam handicraft artisans, particularly those who already have relationships with American companies, hope to expand their presence and compete effectively in the world market.

The country's participation in the world market has increased significantly in the past five years, as it has become the second largest exporter of coffee, cashews and pepper. It also is a major exporter of crude oil, seafood and rice.

Since 1994, when the trade embargo was lifted between the United States and Vietnam, business in general has boomed. In 2004, for example, Vietnam exported almost $4.9 billion in goods to the U.S., an increase of 26.8% over the previous year. About $1.4 billion of that is wood products, including both indoor and outdoor furniture and some accent furniture.

In handicrafts, the export dollars to the U.S. are notably less, hovering around $300 million in 2004, but estimated by the Vietnamese Ministry of Trade to be $1.5 billion in five years. In addition to John-Richard and Toyo, home accent companies sourcing from Vietnam include Maitland-Smith, Interlude, The Philips Collection and Napa Home and Garden. Major mass merchants including Costco and Target also have relationships with factories there, particularly for woven furniture and accessories.

Alex John Malouf, owner of John-Richard, said his company has made a significant investment in Vietnam in the past six years. The company has its own office and 10,000-sq.-ft. distribution center with 10 to 12 employees who specialize in specific areas such as finishes, woods or packing product.

"You have to have your own quality-control people and own office," he said, "or it is very difficult to do business."

Malouf said his company originally went to Vietnam "primarily for a different look in home furnishings. The French influence on the Vietnamese people provides a different look and skill levels than we found out of China.

"John-Richard produces accent furniture, jewels for the home. Our goal is to produce high-end product at a reasonable price point."

Malouf points out his company, like others who source from Vietnam, produce smaller quantities of a particular piece.

Randy Nakayama, president and CEO of Toyo, said his company works with about a dozen factories in Vietnam through an agent, mostly in ceramics, spun bamboo, wood and lacquerware.

He praises the work ethic and intelligence of the Vietnamese people, but said the isolation of the country for so many years has left it less advanced than other Asian countries.

Nakayama said the biggest challenges Toyo faces there are some variances in quality or finish and the packing process.

"There are small factories with small production capabilities," he said. "But there also is wonderful quality and the Vietnamese have a sense of partnership with us."

A few handicraft factories show at Vietnamese government-sponsored pavilions in Frankfurt, Germany, or in Hong Kong, while others opt to come stateside for New York Gift, San Francisco Gift or High Point, N.C.

The delegation, from left, Patrick Putell, Hawk & Pepper; Derrick Lo, Peking Handicraft; Becky Boswell Smith, Mark Abrams, Connie Lineberry and Bruce Yakuma, Peking, in Hochiminh City.	Bright laquer ware, often accented with eggshell designs, are popular items for export from Vietnam.

On a trade mission sponsored by the Vietnam Ministry of Trade, a group of importers and press spent five days visiting handicraft showrooms in Hanoi, DaNang and Hochiminh City, formerly Saigon, and handicraft villages nearby. The showrooms represented a collection of craft factories and showed a combination of products, mostly lacquerware, bamboo and ceramics, which sell well in the U.S.

Companies like Hanoi Trade Corporation, known as Hapro, are heavily involved in building a market for Vietnam products. As a state-owned corporation, Hapro has 6,500 employees and oversees 23 subsidiary companies and enterprises in handicrafts, real estate, food and drink and apparel.

Barotex, the largest manufacturer of rattan and bamboo, also once was state-owned, but now is owned by a private holding company with production all over the country and branch offices in Hanoi and DaNang. About 20% of the company's business is with the United States.

Among the trade delegation was Patrick Putell, owner of Hawk & Pepper, an accessories company that imports from Vietnam; Derrick Lo and Michael Yakuma of Peking Handicrafts, a soft goods company known for embroidered and needlepoint products; and Mark Abrams, an independent product and showroom designer.

Putell, who is enthusiastic about the country's potential at the high end of the market, imports lacquerware accented with eggshell and other ceramic items and shows in High Point, N.C., and the New York Gift Fair.

Putell says his company has begun using the phrase "handmade elegance" to describe the products from Vietnam. "The sources we use in Vietnam help us supply a home accessory that is one of a kind, a piece of art.

"The key issue has been finding the right partners in Vietnam. It takes a lot of footwork to find someone who can deliver a unique product on a consistent basis."

Wood products, especially with sophisticated inlay designs, should appeal to American tastes.