"We'll be doing wood product there at first, but we may be looking very quickly to do upholstery, "said Darrell Ferguson, president and CEO. "The excitement for us is having an exclusive facility and keeping everything proprietary."

To build the factory, Ferguson Copeland partnered with Nguyen Quoc Khanh, a Vietnamese architect and retailer who also has two existing plans making contract furniture for high-end hotels.

Khanh is head of AA Corp., which in additional to handling design projects for offices, restaurant and hotels, operates four Nha Xinh (Pretty Home) home furnishing stores in Ha Noi, Ho Chi Minh City and Dang. Nha Xinh plans to open two additional retail locations a year.

Ferguson designed the plant, which has its own lumber-drying facility, veneer splicer and finishing line. Production should begin in August, and it should turn out eight to 10 containers a month. Ferguson Copeland currently ships 15 to 20 containers a month, mainly from plants in China and the Philippines .

The Vietnam site has ample acreage for another plant, and Ferguson hopes to build a second facility of the same size, though the timing has not been determined.

"We'll work toward this plant producing half our product," he said. "We'll continue to utilize China , with some sourcing in the Philippines , where we still have a dedicated finishing line. We're also looking at other product directions with Vietnam in mind."

Eventually, that could include Ferguson Copeland's own line of accessories.

"We'll bring more value to the market and an interesting new pallet of materials, inlays and lacquers," Ferguson said.

He added that he likes the work ethic and demographics of the Vietnamese.

"They have excellent work habits and skills, and a young population that averages under 25 years of age, so there's a growing work force," he said.

At least one of the company's April introductions, a French-style bedroom, will be source out of the new plant in Vietnam .

Powell Slaughter - Furniture/Today - 6/4/2004