Vietnam is one of the fastestgrowing economies of the South-East Asian countries. Acquisition of WTOmembership by Vietnam has boosted up the growth prospects for its textile andapparel industry. Increasing fashion consciousness of the Vietnam consumers also boost the market of branded apparels. A recent research report ofthe country's retail industry scenario states that Vietnam apparel market isestimated to grow at a CAGR of 15% by 2012.

 

Vietnam has acquired the WTOmembership after a 12 year wait, and this gives the country greater access tointernational markets. Industry analysts positively assert that, this willboost the country's exports, especially in the textile sector and attract moreinvestment. On the other hand, some critics also argue that the increasedcompetition will affect the local manufacturers.

 

Domestic market for brandedapparels:

 

Domestic garment sales for thecountry have recorded a growth rate of 15% per annum, accounting for one fourthof the total production of the country. Domestic market is estimated to bearound $4.5 billion USD, and is expected to grow to reach $6 billion USD by2010. Apparel market of the country is export-oriented, and demand for brandedand quality garments within the country also keeps rising simultaneously. Growingpresence of branded apparel in big cities of the country has supplemented tothe growth of this sector. Notable fashion brands such as Giordano, D&G,Gucci, Mango, Bossini and Valentino have established successfully in the Vietnam market, and have a good response from the customers.

 

In an exclusive interview with &sec=article&uinfo=<%=server.URLEncode(1752)%>" target="_blank">Fibre2Fashion, Mr.Le Quoc An, Chairman, Vietnam National Textile Garment Group (VINATEX),goes into raptures over the performance of Vietnam textile industry during thepast year. He says, "Despite of the fact that the year 2008 came withchallenges including global financial crisis, fierce competition with textileand garment powerful countries, domestic high inflation, labor fluctuation, thefirst 10 months of the year 2008 witness 7.6 billion USD in textile and garmentexport, a growth of over 20% year-on-year."

 

The biggest market challenge for Vietnam comes from China both at the domestic and the global market. It is believed that localbrands were not able to keep pace with the aspirations of the youngergeneration in terms of design and quality in which China is better off. Highend products will feel the heat of recession more than mass consumed productsin which China has a competitive edge. Branded apparel sector in Vietnam will also face price competition in global markets from its competitors'.

 

Apparel industry is the largestindustrial employer, and the second largest export industry in Vietnam. The country is already a low-cost apparel supplier to many countries in the EU. Iffree trade efforts prove successful, it is poised to become a big apparelsource for US. Today, Vietnam is on the radar screen of the global apparelmarket, having the focus of many international brands. It is also beingconsidered as a global export power house.

 

References:

 

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