Bangladesh could rival Vietnam in furniture exports with right support

Bangladesh's furniture industry has expanded rapidly over the past decade, yet design innovation and technological advancement remain its greatest obstacles on the path to global success. Despite strong domestic demand and steadily increasing production, the country's export potential remains largely untapped.

Many manufacturers continue to rely on conventional production methods, outdated machinery, and limited design capabilities. While a few brands have made notable strides in improving quality, the sector as a whole still lags behind international standards in design, technology, and quality control. Compounding the challenge are high import duties on raw materials, which significantly drive up production costs.

According to the Export Promotion Bureau (EPB), Bangladesh's furniture market was valued at approximately Tk30,000 crore in 2023. The sector has been growing at 10–20% annually, with production rising by an average of 18–20% each year over the past five years.

Globally, the furniture market is worth around $650 billion, with exports accounting for USD 328.64 billion. China dominates, exporting $139.48 billion annually. Bangladesh, however, ranks a distant 36th, with exports of just $110.36 million—a clear indication of the industry's untapped potential.

Selim H Rahman, chairman of the Bangladesh Furniture Industries Owners Association (BFIOA) and Hatil, believes innovation is the key to progress.

"We want to enhance product quality through modern technology, automated production, and creative design," he says. "Even though we enjoy bonded warehouse facilities for importing raw materials and exporting finished goods, we cannot survive in global competition without innovation and technology."

Experts argue that reducing production costs through modern machinery, automation, and technical training is essential. Equally important is aligning production with international standards and embracing sustainability through eco-friendly practices, waste recycling, and green certification—all measures that could make Bangladeshi products far more competitive globally.

For sustainable growth, industry stakeholders are calling for dedicated industrial and economic zones, export-focused policies, design and technology development programmes, and incentives for foreign investment. National training initiatives to build technical, design, and managerial expertise are also critical—linking Bangladesh's rich tradition of craftsmanship with industrial-scale production.

A recent Bangladesh Investment Development Authority (BIDA) study identifies high import duties on raw materials as one of the main barriers to export growth. Vietnam offers a striking example of what supportive government policies can achieve. There, minimal tariffs on raw materials have fuelled one of the fastest-growing furniture export industries in the world.

Vietnam's furniture exports rose from $3.06 billion in 2010 to $19.19 billion in 2021, largely thanks to low tariffs and industry-friendly policies. By contrast, Bangladesh imposes import duties of 10–37% on timber and 31–89.39% on chemicals, compared with Vietnam's rates of 0–5% on timber and 0–15% on chemicals. As a result, essential inputs such as foam, lacquer, and paint are far costlier in Bangladesh, making it more difficult for local manufacturers to compete internationally.

Furthermore, most Bangladeshi timber is not FSC-certified, forcing exporters to source certified wood to meet global market requirements. Combined with high duties on timber and chemicals, this further limits export competitiveness. The BIDA report recommends that the government consider reducing or exempting import duties on raw materials to help local manufacturers compete more effectively on the global stage.

Industry insiders are confident that Bangladesh has the resources and talent to succeed. With lower tariffs, better design development, and investment in modern technology, the country's furniture sector could follow Vietnam's example—transforming from a promising domestic market into a major global exporter.