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Vietnamese garment firms strive to capture domestic market

Sep '18
Vietnamese garment manufacturers are increasingly investing in new technologies and focusing on developing novel products to recapture the domestic market, which is dominated by international brands at present. They are expanding their retail networks, creating original designs and supplying those to foreign brands as part of value-addition.

In 2016, Pham Thanh Tung-based Duc Giang Garment Company (Dugaco) set up a fashion centre to design, make samples, manufacture and distribute high-quality, competitively-priced original products. It has also opened nearly 200 fashion outlets across the country.

Dugaco makes uniforms for the state treasury, the Hanoi People’s Court, Vingroup, Agribank and Vietinbank.

Chien Thang Garment Company, which manufactured garments for foreign brands for 20 years, has now launched its own brand, Padu.

Several subsidiaries of the state-owned Vietnam National Textile and Garment Group (VINATEX), such as Garment Co 10, Viet Tien and Nha Be, have also invested in introducing their own brands, according to a Vietnamese newspaper report.

VINATEX recently opened a six-storey fashion centre in Hanoi featuring products from famous domestic brands. After two months, the company’s revenues reached VND19 billion.

Spending on garment products now accounts for 5-6 per cent of Vietnamese consumers’ total spending, worth around $3.5-4 billion, according to the Vietnam Textile & Apparel Association (VITAS). This indicates that the market holds great potential for domestic enterprises.
But smuggled and counterfeit products pose a great barrier to domestic brands.

Garment Co 10 maintains more than 200 shops and dealers throughout the country and is upgrading and expanding its fashion centres.

VINATEX has asked its members to research and create product lines to satisfy the rural consumers. (DS)

Fibre2Fashion News Desk – India

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