Foreign brands competing with local clothing companies in Vietnam

17 May '21

2 min read

International brands are giving tough competition to the local Vietnamese apparel industry, causing the market share of domestic brands to shrink. Poor design, small scale, less professionalism, counterfeiting and a lack of strategy for managing and promoting the brands in the long run are cited as the reasons for this in a recent report.

Currently, Adidas, Inditex and H&M are the top three brands in Vietnam, according to a report by Vietnam Industry Research and Consultancy (VIRAC). Following these are Vietnamese enterprises that own brands such as Biti’s, Canifa, Viet Tien and May 10.

More than 200 mid to high-end foreign brands have their official stores in Vietnam.

In spite of exporting textiles and garments to the world, Vietnam’s apparel market is unknown globally as the products are exported under the names of foreign brands. The VIRAC report stated that it is necessary to improve the domestic industry with the help of media to bring Vietnamese brands to the world.

Vietnam currently does not have an environment and a methodical school for operating fashion brands to develop the domestic industry effectively and systematically, it added.

Talking about the trends for the country’s apparel industry, the report said that sustainability will be the top trend in the in the near future, followed by influencer marketing, video content, distribution on e-commerce channels and second-hand business.

The revenue of the apparel market of Vietnam in 2020 decreased by over 10 per cent compared to 2019 due to the pandemic.

Fibre2Fashion News Desk (KD)

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