What Are OEM & ODM? Applications in the Export Furniture Industry

In the export furniture industry, two production models—OEM and ODM—have become increasingly popular. They play a crucial role in helping manufacturers expand their markets and enhance competitiveness. So, what exactly are OEM and ODM? And how are they applied in the furniture industry? Let’s explore in detail below.

What is OEM?

OEM (Original Equipment Manufacturer) refers to a production model where the manufacturer produces products based on the client’s design and specifications. In this model, the furniture manufacturer is responsible for manufacturing according to technical drawings, material requirements, and quality standards provided by the client. The design, packaging, and branding belong to the client.

Example:

A furniture brand in the U.S. wants to outsource the production of wooden tables and chairs based on their own designs. They contract a Vietnamese manufacturer to produce these items under the OEM model.

What is ODM?

ODM (Original Design Manufacturer) refers to a model where the manufacturer handles everything from product design to finished goods. The furniture manufacturer develops the idea, creates product designs, produces samples, and then offers them to international buyers, who can rebrand them as their own (private label).

Example:

A Vietnamese furniture company designs a set of modern outdoor furniture and offers it to European distributors, who sell it under their own brand.

OEM vs. ODM in the Furniture Export Industry

OEM & ODM in Vietnam’s Furniture Export Industry

Vietnam is currently one of the leading exporters of furniture worldwide, especially to markets such as the U.S., EU, and Japan. The OEM model is widely used because it effectively meets the demand for large orders with specific design requirements.

However, ODM is also gaining traction, as Vietnamese furniture manufacturers increasingly invest in product design and innovation to enhance value and proactively reach international clients.

Benefits of Applying OEM & ODM in Furniture Export

✅ Expand access to international markets

✅ Flexibly meet diverse customer demands

✅ Optimize production costs and time-to-market

✅ Build private brands or strengthen design capabilities

Conclusion

Understanding what OEM and ODM are helps furniture export businesses choose the right production strategy aligned with their growth direction. Whether manufacturing on demand or designing original products, both models offer great potential for Vietnamese furniture companies to strengthen their position in the global market.