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Textile and wood sectors focus on local markets   2009-11-01 - VNS

 
ietNamNet Bridge - The garment and wooden furniture sectors have targeted local markets with certain success to compensate for shrinking export turnovers caused by the current global economic woe.

The textiles and garment industry’s export value fell to US$6.7 billion in the first nine months of this year, 1 per cent lower than the same period last year, mainly due to the decrease in demand from the US and the EU.

Vu Duc Giang, director general of the leading Viet Nam National Textile and Garment Group (Vinatex), said the group was set to spend about VND7 billion (US$389,000) on a promotion campaign in rural markets and a programme to encourage Vietnamese people to buy Made-in-Viet Nam clothes.

Vinatex, which now has 50 sales outlets nationwide, is managing to distribute its products to remote and isolate areas.

With these efforts, the group has raised its revenue in the domestic market by 17-23 per cent compared with last year and aims to obtain an increase of 28-30 per cent by the end of the year.

The Viet Nam Textile and Apparel Association (Vitas)’s chairman Le Quoc An said Vinatex Mart supermarkets and sales agent systems of Wow, Vera, San Sciaro, Sanding, F House, An Phuoc, Thai Tuan, Foci and others were outstanding enterprises in promoting their brands and expanding retail networks.

Some companies have benefited from already being well-established brand names in the domestic market.

Consumers said that Made-in-Viet Nam garment products were doing well in rural markets due to reasonable prices, diverse designs and good quality.

Similarly, wooden furniture makers have seen increased domestic sales. The Viet Nam Wood and Forestry Product Association recently decided to revise down its yearly export target by $200 million to $3 billion because of poor performances in the giant European and American markets.

However, Dang Thi Mai, director of the research institute on enterprises and consumers, said there was great potential for the sector from increasing internal demand.

According to the HCM City Handicraft and Wood Industry Association (Hawa), local demand has continued to rise at an annual growth rate of 15 per cent.

In addition, the recovery in the property market and resumption of construction will help the industry.

Hawa deputy chairman Dang Quoc Hung said enterprises should map out comprehensive development strategies to capitalise on opportunities in the domestic market.

The association plans to set up a joint stock company to distribute its members’ wooden products, and boost business co-operation between producers and distributors.

Some companies have successfully developed retail networks in the local market, including Nha Xinh, Truong Thanh and Nguyen Thanh by boosting sales on the internet, providing good after-sales services and developing their brand recognition.



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