WTO leaves garment makers out in the cold
Vietnam Economic Times, Vietnam
“Never before have we met obstacles like the current flooding of the market with apparel from Thailand, Malaysia, Singapore, South Korea, China and Hong Kong,” said Dang Quynh Doan, CEO of Viet Thy Co.
Owing to Viet Nam’s WTO commitments, tax cuts have subsequently reduced the price of clothing imports. As a result, garments imports rose 30 per cent last year.
The nation’s clothing manufacturers face formidable opposition from cheap and deluxe foreign garments.
Local products have taken a battering, particularly from garments made in China, Thailand and Malaysia, which range in price from VND120,000-240,000 (US$7.50-15).
Fashionable, creative and unique designs are not only the preference of the young but the strength of imported clothing.
Competition between made-in-Viet Nam apparel and that imported from South Korea, Singapore and China is raging of late.
Le Quoc An, chairman of Viet Nam Textile and Apparel Association said that deluxe clothing with famous trademarks accounts for only one per cent of the total market. Such products cost around VND3-4 million ($188-250) so are out of reach for those with low and medium incomes.
“It’s not necessary for Vietnamese firms to enter this segment as they risk competing with in-stock goods,” he said.
Chasing the youth market
In preparation for intense competition, local garment makers are launching new, edgy clothing designs at reasonable prices to attract the youth.
Jeans, khaki pants, skirts and T-shirts at retailers such as PT 2000, NinoMaxx, Viet Thy and Sea Collection all flaunt distinctive features of their own.
To gain consumer interest, clothing manufacturers have kicked off promotions aimed at drumming up holiday shoppers including sale prices of up to 70 per cent off.
On HCM City’s Nguyen Trai, Tran Huy Lieu and Le Van Si streets, fashion retail stores are chock-a-block with young shoppers.
Two students from the University of Social Sciences and Humanities, Thuy Trang and Minh Huong, said that made-in-Viet Nam products cater to a wide range of fashion senses with prices ranging from VND130,000-200,000 ($8-12).
State-owned garment manufacturers like Viet Thang, Thanh Cong, Thang Loi and Nha Be target low and medium incomes with products priced from VND50,000-170,000 ($4-10).
Source: Vietnam News
