"Made in Taiwan" had special meaning when I was a kid (too long ago to count using only one's digital appendages). It was a phrase generally disdained as implying both poor quality and disloyalty. As labor costs in the U.S. rose throughout the last century, reliance on foreign goods, particularly clothing, furniture, and household items, seriously impacted American manufacturers, putting many factory workers out of a job. "Buying American" was considered the patriotic thing to do, and the smart thing to do, as foreign-made products were generally of lesser quality.

While it was certainly true that American manufacturing jobs were rapidly being lost to off-shore operations, it was simply a myth that our economy would crumble if we didn't resist the temptation to buy lower-priced foreign-made items. The American economy simply shifted toward service and technology, and over the course of two or three decades, imported Asian goods became staples of the American buyer's diet. This was no less true in the home furnishings industry where savings could be substantial.

Something else happens over time, however, as the manufacture of cheap exports thrives in a country. Japan, Taiwan, and China have all seen their labor costs rise as the fruits of their laborers gradually transformed poverty-stricken rural communities into busy commerce centers. "Cheap labor" never stays that way for long, and for that reason, new sources of lower-wage employees must be sought.

At present, Vietnam is the new darling of low-cost imports. While in no way a threat to China's #1 spot as supplier of imported goods to the U.S. with a 64% share, Vietnam's star is on the rise. Her share of the American imported furnishings market has risen from a mere 0.1% in 2001 to a healthy 8.3% in 2008. This puts Vietnam squarely in second place, with almost double the share of the next biggest competitor, Malaysia. Meanwhile, the market share of once-powerful Taiwan has now fallen to only 2.4%, as of 2008.

Is Vietnam's new position sustainable? Well, that depends largely on how she responds to some critical manufacturing challenges currently faced. As I mentioned, Vietnam can provide the labor for pennies per hour, but she's not particularly well-prepared in some of the other areas required for furniture manufacture. The Vietnamese lack the raw materials--timber and textiles--that are most important to the home furnishings market. They import 70-80% of these items, and also, must look outside the country for the various chemicals required to treat the wood and coverings for crafting and preservation.

Despite these obstacles, however, Vietnam benefits from the high U.S. tariff on Chinese wooden product imports, and from a reputation for quality craftsmanship and unique design details. To further her cause, Vietnam has begun embracing her role as a future furniture super-power by playing host to the annual furniture expo in Ho Chi Minh City, the HCMC International Furniture and Handicraft Fair and Exhibition.

Clearly, Vietnam would like to replace China, Taiwan, and the other Asian importers as the new "Made in..." here in the U.S., the primary recipient of its fine manufactured wood products. If the American market continues to gobble up her wares as it has, Vietnam's almost exponential rise should continue.

Learn more about wood furnishings at Room2Eat Tables & Chairs, the webstore owned by author and market researcher, Maria B. Spicer. There you can find a new accent table, living room table, dining room table, or anything else you need for your home.