The Vietnam National Textile and Garment Group (Vinatex) is striving to
gain a firmer foothold in the domestic market by expanding its
distribution system and increasing the quality of its products.
This year, the group is working towards a rise of 12 percent in total
revenue, of which 30 percent will be contributed by domestic sales.
Tran Viet, head of the marketing department of
Vinatex, said the local garment market is promising as domestic
consumption for clothing and fashion accessories only ranked after food
and foodstuff.
In the first six months of this
year, the group’s domestic revenue is estimated at 11 trillion VND (517
million USD), a year-on-year increase of 10 percent.
According to the group’s statistics, each Vietnamese consumer spends
between 150,000 VND and 500,000 VND (7-24 USD) on clothes and fashion
accessories every month, accounting for 18 percent of his or her monthly
consumption.
Vinatex General Director Le Tien
Truong said that to seek a firm foothold in the local market, garment
companies have to enhance their localisation ratio to 60 percent by
2015.
To that end, the group has increased
investment in upgrading technology in order to increase production and
renew designs.
Than Duc Viet, Deputy General
Director of Garment 10 – a Vinatex subsidiary, said that his company has
paid attention to technology investment and cut production costs to
supply domestic products at competitive prices.
Expanding the distribution network is also one of the solutions to
ensure Vinatex products get closer to local consumers. The group now has
more than 4,000 shops in the country. However, Truong said domestic
products have sought a firm foothold in medium and high-end segments
only, while locally-made products are not capable of competing with
cheap imported ones.
Phan Chi Dung, Director of
Light Industry Department under the Ministry of Industry and Trade, said
Vietnamese garment companies need to make more efforts to compete with
imported ones on home turf, while paying more attention to developing
the retail network across the country.
Garment
companies need to work out policies to further invest in designing and
applying new technology to produce high-quality and specialised
products, he added.-VNA