VietNamNet Bridge – Garment companies are missing out on a great opportunity to expand at home because of their preoccupation with export markets, an industry seminar heard yesterday.
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A recent survey by the Viet Nam Textile and Garment Group (Vinatex) found domestic demand for fashion increasing 20-40 percent annually. |
A recent survey by the Viet Nam Textile and Garment Group (Vinatex) found domestic demand for fashion increasing 20-40 percent annually.
Fifty percent of consumers in HCM City spent VND500,000 to 1 million a month on clothing, a survey by Business Study and Assistance Centre (BSA) found.
With Vietnamese spending around VND150,000 ($9) per month per capita, the market is estimated at US$500 million per year.
Viet Nam ranked ninth among garment exporters. But Le Quoc An, Vinatex’s chairman, said domestic firms did not dominate the local market.
Around 140 popular international brands from France, Italy, the US, Spain, and other countries can be found in the country’s boutiques. Imported fashion items, in fact, hold a whopping 60 percent market share.
Products from Asian countries like China, South Korea, Thailand and Singapore too are very popular in Viet Nam. Chinese clothes are very popular and competitive because of their reasonable prices, delegates heard.
Zen Plaza, a fashion hub in HCM City, recently did a survey based on the 6,000 to 7,000 receipts it makes daily. It found more than 30 per cent were worth over VND1 million and customers to be mainly 22-40 years old.
An said many garment firms merely did outsourcing work for foreign partners, earning little revenue. If they invested more in design and distribution capabilities, their revenues would burgeon, he said.
(Source: Viet Nam News)
Update from: http://english.vietnamnet.vn//biz/2008/10/811278/