Vietnam Sourcing Reports: Garments18 Oct 2011 • by Natalie Aster
An optimistic outlook prevails across Vietnam’s garments industry as its exports continue to fare strongly despite the sluggish global economy.
As a whole, foreign shipments have been steadily expanding over the past 10 years. Growth has become more pronounced since 2007, however, with large customers increasingly shifting from China to Vietnam, which is considered to be a more cost-effective alternative.
The development of the sector has propelled the country to turn into one of the world’s leading supply centers for garments. Prominent apparel and retail brands are among the numerous clients being catered to by domestic manufacturers.
Products from Vietnam target the low-end and midrange segments. Designs are commonly influenced by buyers’ preferences.
The report “Vietnam Sourcing Reports: Garments” by Global Sources covers the main types of garments available in Vietnam, including casual, formal and sportswear, baby and children’s apparel, and undergarments and sleepwear. Each product category has its own price guide that describes the features of low-end, midrange and high-end models.
- Despite recording robust exports in recent years, the industry is confronted by rising raw material prices that cut into suppliers’ profit margins. Expenditure on fabrics has increased significantly in the past 12 months, resulting in higher manufacturing costs.
- The government and a large state-owned garment and textile company are leading a project that aims to reduce reliance of local makers on imported inputs. In place until 2020, the program entails a number of objectives that include expanding the land area allocated for cotton production.
- The majority of suppliers profiled in this report plan to push up quotes within the next six months in an effort to arrest falling profitability. Apart from fabric outlay, manpower spending is growing due to legislation that intends to minimize wage disparities in the domestic workforce.
- The sector’s most important foreign destinations are the US, the EU and Japan. Over the next 12 months, many enterprises expect to continue emphasizing these markets because of their established clientele in such locations.
- T-shirts and jackets are the largest product categories for Vietnam made apparel. Other key lines are pants, dress and casual shirts, and skirts.
- Current product development focuses on models that feature decorative designs and modern motifs.
Vietnam Sourcing Reports: Garments
Published: September 2011
Price: US$ 75.00
Report Sample Abstract
Supplier profiles: An Duong Fashion Trading Co. Ltd
An Duong Fashion has over 20 years of experience manufacturing garments before it was officially established in 2008. The company has ISO 9001:2008 certification. Total sales last year reached $2.5 million.
The main overseas market is the UK, which accounts for 70 percent of shipments. Twenty percent goes to the US and Canada. The rest is sent to South Korea and Hong Kong. Ninety percent of orders are made under ODM basis.
Casual wear such as polo and T-shirts accounts for one-half of shipments. Formal, and baby and children’s clothes represent 20 percent each. The rest is taken up by sportswear.
Prices are mainly determined by the fabric used and trimmings. Designs can feature lace, embroidery, crocheted motifs and satin ribbons. Casual types are often made of pure cotton with minimal embellishments.
Quotes range from $2.50 to $10. A 100 percent cotton T-shirt for women is available for $5. A men’s polo shirt can reach $7.
Cotton, spandex and knitted fabric are purchased from suppliers in Hanoi and Ho Chi Minh City. A designer releases up to five models every month. Sampling time is seven days.
An Duong Fashion operates a 15,000sqm factory in the Ung Hoa district of Hanoi. All production processes such as cutting, sewing, printing and packing are done inhouse.
The workshop can manufacture 1 million pieces a month. The average monthly output is 60,000 pieces. There are 600 full-time employees. For bulk orders, the company subcontracts to other factories. Ten inspectors are responsible for QC.
Nylon bags and cartons are normally used as packaging. Clients’ preferences are accepted. The minimum order requirement is 5,000 pieces. Delivery time is 60 days.
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