In the past years, the Vietnamese garment and textile industry has successfully created many jobs and increased exports for Vietnam. The export-oriented industry is one of the world’s 10 largest and is the largest forex earner for Vietnam. However, amid global economic recession, the Vietnamese garment and textile industry began focusing on the domestic market.
Mr Le Quoc An, Chairman of the Vietnam Textile and Apparel Association, said: The downsizing of global markets, especially the United States, the European Union and Japan resulted to a sharp drop in orders for Vietnamese markets. The fibre market keeps falling because material prices are low and the competition is getting fiercer. A number of adverse impacts heavily burden Vietnamese garment and textile enterprises.
To cope with such difficulties, Vietnamese apparel producers tend to return to the home market. Mr An said this was a long-term development strategy of the garment and textile industry when export expansions were tougher. However, domestic consumers seem to “unfamiliar” with local export-oriented brands. In addition, the opening of the Vietnamese retail market for foreign retailers in accordance with its WTO entry commitments also creates a heavy pressure on local enterprises even on their homeland.
Successful names in the domestic market like Viet Tien, Garment 10 and Nha Be have urged Vietnamese enterprises to confidently return on the home market for years. The movement of these companies is compared to a “torch” for companies seeking ways to the homeland. The Viet Tien Garment Corporation is the most successful company in conquering the domestic market for many years, with annual growth of up to 40 per cent. At present, Viet Tien is still following its domestic market development strategy with a yearly growth of 40 per cent by introducing a wide range of new high-grade models like Viettien, Vee Sendy, T-Tup, Sciaro, Manhattan as well as normal brands for students and workers like Vie-Laross. Apart from 17 shops and nearly 600 sales agents, Viet Tien is expanding its distribution channel and bringing its products to 48 commercial centres in the country.
Nha Be Garment Corporation expects the growth at 200 per cent on the domestic market, a very impressive figure amid slumping demands for many kinds of commodities.
In addition, Vietnamese garment companies are also seeking many ways to their home market. Remarkably, they are now joining hands together. Previously, they usually sought customers through direct material suppliers and outsourced for them. Ms Ho Thu Ha, General Director of Phuoc Long Investment Company, said: Her company is now introducing her fibre and clothing products such PE, PA, cotton, TR, ITY to new Vietnamese garment producers like Viet Tien Export Joint Stock Company in addition to joining hands with Phong Phu Corp and Dong Nai Garment Joint Stock Company. Her company and Viet Tien has initially agreed on product categories, specification and prices.
Ms Pham Thi Du, General Director of Tien Tien Garment Corporation, said her company has sent orders to Phuoc Long Company.
The successfulness of big concerns on the home market is not an easy task. To increase high added value for their products, many garment and textile companies pay more attention to consolidating their fashion designer force to diversify their range of products to meet the demand of a majority of customers, from the rural to urban zones.
Thanh Thao
Vietnamese
