Local Textile Firms in Race with Imported Apparels

Vietnamese garment and textile businesses are rushing to roll out high end products in a bid to retrieve market shares from luxury imported apparels.

 

The Viet Tien Garment Holding Company has just launched T-up branded shirts at prices of nearly VND1 million ($64) each, a 10-fold increase compared with its ordinary line.

 

Also, the Garment No. 10 Company has released high-end shirts at prices of VND600,000 ($36), an increase of six times against its ordinary line, and targeting executive officers. 

 

Meanwhile, the Saigon Apparel Co. also rolled out shirt with brands of Sanding, Dobowr, One, Besisu with prices five to seven times higher than its ordinary product.

 

Experts in the field said, the adjustment of the business strategies of local garment and textile enterprises were introduced to compete with imported apparels, which still dominate the domestic market for high end apparel lines, despite their high prices.

 

Even though local garment and textile enterprises are increasing their export turnover year after year, they still seem to be losers on their home turf, leaving imported luxury apparels to dominate the domestic market.

 

According to managing director of the Oriental Garment Company, it is a risk for Vietnamese garment and textile firms to participate in the production of high end apparel products as apart from improving technology and investment in modern production lines, locally tailored products were still normally inferior to imported goods, which have prestigious brands and attract the attention of Vietnamese consumers who prefer to choose foreign brands.

 

Hung, however, said with imported apparels domination of the domestic market, without business strategy adjustments, local enterprises could not compete with them and survive.

 

Experts said the adjustment of a strategy is necessary under the context that apparel export into the US remains restricted with quotas and in such a way, local enterprises should find adequate ways to expand export markets or find other distribution and sales channels.