Promote domestic market
The impact of the Covid-19 pandemic in 2021 slows down purchasing power due to the market closure in accordance with Directive 16 of the Government, and the income of workers decreases. The production organization of enterprises cannot be as normal as before. Mr.Than Duc Viet, General Director of Garment 10 Corporation, said that in the first two months of 2021, there was a shortage of traditional orders such as suits and shirts, which are the strength of Garco 10. Although the source of goods had been sufficient by the end of the first quarter of 2021, the expected revenue was only approximately 81% of the plan and 90% of the same period in 2020.
Decree 128/ND-CP was born, which lifted the curtain brighter for Vietnam textile and garment industry in the last fourth quarter. When the market opened, a series of stores and trade centers reopened, creating a playground for consumers. In 2021, the proportion of online purchases and sales increased by 46% over the same period. The business community already knew how to change, built identity and strategies for their brands in line with the trend of demand of domestic consumers. For example, Garment 10 Corporation, before the impact of the Covid-19 pandemic, many export markets were "frozen", Garco 10 had plans to focus on developing the domestic market and has affirmed its position of the brand in the local market. According to the plan, in the coming time, the corporation will continue to set the goal of promoting the development of the domestic market with suitable products that ensure both quality and reasonable prices for consumers. The product lines of this company have conquered customers in addition to reasonable prices because the design factor is calculated to match the size and style of Vietnamese people but still keep pace with international fashion trends.
Another enterprise is Viet Tien Garment Joint Stock Corporation which, over the years, has affirmed its name and position in the domestic market as well as domestic consumers. Currently, Viet Tien is one of the enterprises with the largest storage system in the industry with 1,300 stores introducing and selling products across the provinces and cities in Vietnam with the brands Viettien, Viettien Smartcasual San Sciaro , Manhattan, T-up, Vietlong, Camellia. Mr Bui Van Tien - General Director of Viet Tien shared, the goal set by 2030 is that the proportion of exports bearing the Viet Tien brand will account for 10%-15% of the total value of Vietnam's textile and garment exports, with a turnover of US$ 1.2-1.4 billion for the whole Viet Tien system; and build solutions to sell online accounts for 25-35%.
According to Mr Vu Duc Giang – VITAS Chairman, currently, the domestic market still has a lot of room for development, domestic consumers have used products of the Vietnam textile industry. Some Vietnamese enterprises have boldly introduced their brands to the ASEAN market. Total fabric exports in 2021 were over US$ 2 billion, yarn was over US$ 6 billion, all were Vietnamese brands. “In the coming time, VITAS will chair the first meeting to invite designers to establish Vietnam fashion association. This association will be the driving force to develop the domestic market, affirming the position of domestic fashion brands, create a trust for consumers and will surely reap good results in the coming years”, Mr Giang said.
Change to take over
After 12 years of implementation, the campaign "Vietnamese use Vietnamese goods" has contributed to raising awareness and making positive changes in consumption and shopping among the people. In particular, the Party Committee of the central business block has made clear and specific initiatives with the policy "Enterprises and banks in the block give priority to use each other's services and products". As a result, for the textile industry, the aviation industry of Vietnam Airlines used uniform products of Garco 10, Tien Tien, Dugarco; or uniforms of the electricity, rubber industry, coal and minerals are also used by a series of Vietnamese textile and garment enterprises.
Up to now, Vietnam has 52% of products designed and manufactured by Vietnam textile and garment enterprises in Vietnam.
“For the Campaign to be successful, we need a more synchronous solution, and at the same time, the market regulator and the Chamber of Commerce need to make assessments and summaries after 12 years of implementation to draw lessons and experience, going into practice in each field is a strength. Above all, media agencies must participate more deeply in this program to be able to bring results to the business community and consumers.” Mr Giang – VITAS Chairman emphasized.
A series of free trade agreements not only opened the door for Vietnam goods to go abroad but also created favorable conditions for foreign goods and products into Vietnam. The segment is diversified and branded, which will directly affect the products of Vietnamese enterprises. According to the VITAS Chairman, this is a challenge but also an opportunity for enterprises to learn their vision, business methods, design, etc. Firstly, enterprises are forced to change their design methods and invest in equipment. , technology, people, aim to produce individual orders for the clothing needs of different consumers. For example, TAL Group in 2021 has produced up to 5 million individual orders, each order only 4-5 shirts. Second, the Government needs to build industrial parks with wastewater treatment, call for investment in factories in yarn - weaving - dyeing to complete the chain of the fabric production process, serving the textile industry. This will be the basis for localizing the source of fabric materials, the foundation for the textile and garment industry to convert production from processing to design and production, both for domestic consumption and towards stronger export of garment products.
Goals of Vietnam textile and garment industry in 2022 in the domestic market
Mr Giang said that Vietnam textile and garment enterprises have been affirming their position in the domestic market with the product segment at medium and high levels. The target set by the end of 2022 is that the domestic market will account for about US$ 3.5-4 billion.
To achieve that goal, VITAS will continue to accompany the enterprise community on the issue of counterfeit goods by linking with market management agencies and mobilizing consumers through communication channels. At the same time, actively call for investment from domestic textile enterprises and foreign direct investment enterprises in the supply that Vietnam is lacking. On the other hand, VITAS is proposing to the Government, Hanoi, HCMC agencies and design development centers and catwalks for designers to have a place to show their talents and come up with fashion models, catch up with the trend of the domestic, export market and global fashion. By doing all these, we can succeed in the goal of sustainable development.
