Why has Vietnam’s furniture industry overtaken Indonesia’s?

Posted on 2026-03-01

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image source: ukmindonesia.com

Daulay et al. (2022) use the 5P framework to analyze the shift. In 2000, Indonesia was 5th globally. By 2014, we fell to 25th while Vietnam rose to 8th.

Key findings:

  • Price: Indonesia’s labor costs are nearly double Vietnam’s ($312-$394 vs $119-$193).
  • Volume: Vietnam’s export value is now 5x higher than Indonesia’s.
  • Value: Vietnam has transitioned to "augmented products" (better design & service), while Indonesia remains in the "expected product" phase.

The verdict? Indonesia needs better promotion, simplified legality (SVLK), and a focus on high-value design to compete.

Read the full article: doi.org/10.22146/jik.v16i2.1535