Thaicom: Emerging Power in Vietnam's Fashion Life

3:26:34 PM | 7/8/2005

Thaicom: Emerging Power in s Fashion Life

Thai Binh Duong Trade Joint Stock Co. (Thaicom) has secured a strong foothold in the fashion market although it is just a newcomer. Thaicom, set up four years ago, has received a good deal of prestigious prizes such as the Golden Hat Prize at the International Fashion Fair 2002 and the Gold Medal at Vietnam Fashion Fair 2003.

These achievements, according to Thaicom Director Thai Kim Thanh, come from restless efforts to improve product quality, to have a good market outlook and seek new markets.

At the time of Thaicom's establishment, the Vietnamese fashion market was not blossoming as it is now. Imported models strongly dominated the local market while local long-standing fashion companies were unable to meet the humble demand due to their unattractive quality and prices.

Thaicom, at that time, also encountered numerous difficulties from its workforce, brands and consumption market to material sources. had to import almost all materials and accessories at an import tariff of 40 per cent and a VAT rate of 10 per cent while fashion companies in neighbouring could take the initiative in material sources, enjoyed protectionist policies and had a large local market thanks to their government's incentive policies. Therefore, Vietnamese companies had to keep up with new fashion trends and introduced their own development strategies.

Thaicom has chosen to specialise in making vests, coats, shirts and trousers. This is a narrow and difficult market to penetrate for several companies but a market with great potential for others.

Understanding that a fashion company needs to be careful and meticulouss from materials to styles and qualities of finished products, Thaicom has built up a skilful and professional workforce, especially designers. Its over 200 workers have an intricate knowledge of fashion and continuously improve their skills. Besides, the company also actively participates in important fashion fairs locally and internationally to set up business relations as well as to gain experience from its counterparts. Gradually, Thaicom products have won the hearts and minds of Vietnamese customers despite the prevailing appearance of low-cost Chinese styles.

Apart from local market domination, Thaicom products have been exported to , and others as well. The company has registered its trademark in the and the EU to smoothen business overseas. Currently, Thaicom makes 3-5 million products a year. To meet the growing demand and diversify styles, it has built and expanded workshops to 15,000 square metres in Bac Ninh Province .

In the coming years, Thaicom will pay more attention to developing its trademarks to continue dominating the local market and penetrating more export markets.