The Japanese market still holds some promise for Vietnamese apparel, particularly in the high-grade segment, and domestic textile and garment producers should find ways to grasp the opportunity, experts say.
In the first seven months of this year, the textile and garment industry’s exports totalled US $5.02 billion, a year on year increase of just 1 per cent.
The US and EU are Viet Nam’s biggest textile and garment markets, but they are yet to recover from the global financial crisis.
According to the General Department of Customs, in the first six months of the year, export turnover of Vietnamese garments to Japan was VND440 million, an increase of 22 per cent over the same period last year.
Le Van Dao, vice chairman of the Viet Nam Textile and Garment Association, said that exports to Japan would go up by 20 per cent to between US$900 million and $1 billion by the year-end, and $1.1-1.2 billion respectively in 2010.
Huge market
Japan is the world’second largest apparel market. The total value of women’s and children’s clothing imported each year is about US$28 billion per year, accounting for 60 per cent of its total market value.
In Japan, the lower-end clothes from Viet Nam could not complete with Chinese products, but there was some "vacancy" for higher-end apparel, Japanese fashion designer Horikoshi Hasae said during a recent visit to Viet Nam.
Another advantage for Vietnamese garment enterprises was the Viet Nam-Japan Economic Partnership Agreement that took effect last month, he added.
Under the agreement, those Vietnamese enterprises which use fabric sourced from Japan will enjoy the tariffs of zero per cent instead of the previous 5-10 per cent.
Additionally, Japanese importers highly appreciate the ability and skills of Vietnamese workers.
Japan is clearly a potential market for Vietnamese garment products. A lot of Vietnamese enterprises have been successful in the market including Nha Be, Garment Company No10, Nam Dinh Textile and Garment Company and Phong Phu Textiles, according to the designer.
However, Horikoshi also stressed that Vietnamese enterprises should find ways to add value to their products by improving designs and sharpening their competitive edge.
He said Vietnamese companies should also develop a good understanding of Japanese consumers’clothing styles, tastes as well as demand.
More significantly, Vietnamese apparel makers must have products that help wearers show their own personalities, he said.
Looking at upcoming fashion trends in Japan, Horikoshi said designs rooted in nature, traditional costumes and economic or political events would likely become more popular.
Small quantities
Recently, many Japanese dealers tended to import a diverse collection of fashion products in small quantities instead of importing large volumes of products of the same kind, he said.
Vu Van Trung, Trade Counselor to Japan, said that in recent years, Viet Nam’s garment exports to Japan consistently increased by between 9 and 10 per cent annually.
Trung said that he and Horikoshi visited some companies specialising in exporting apparel to Japan and proffer advice on some designs suitable to the Japanese market.
This was a good opportunity for Vietnamese garment companies to get to understand world fashion trends and adapt accordingly, he said.
The Ministry of Industry and Trade has asked the textile and garment industry to step up co-operation with Japanese companies to build materials and accessories production plants, and ensure supplies for domestic garment producers.
