|
Vietnamese garment companies now targeting Japanese market
As the amount of goods exported to other loyal markets has been decreasing dramatically due to the global economic recession, Vietnamese companies have decided to boost exports to Japan, taking full advantage of the VJEPA (Vietnam-Japan Economic Partnership Agreement).
The workshop of the Saigon 3 Garment Joint Stock Company now is running at full capacity as the company is making products to fulfill a contract to export 800,000 products to big Japanese partners.
“We have exported $25 million worth of products so far, 65% of which has gone to the Japanese market. This is the only market which has not seen any decreases in the number of orders and unit export prices,” said Pham Xuan Hong, Chairman of the Saigon 3 Garment Joint Stock Company.
Patience is needed
Hong said that Japan is a difficult-to-please market. However, if companies can overcome difficulties and meet the requirements of Japanese partners, they will win the confidence of partners and get long-term and stable contracts.
Not only Saigon 3, other garment companies are reconsidering export market structures. Viet Tien, Nha Be and Phong Phu have also got big orders for shirts, suits and towels from Japanese partners.
Viet Tien Company has confirmed that 33% of its exports have been going to Japan, more than the quantity that goes to the US and EU. Phan Van Kiet, Deputy General Director of Viet Tien Company, said that the company has been developing Japan as a potential market since 2007. “Unlike other markets which are risky and unstable, the Japanese market can offer long-term, high stability,” said Kiet.
VJEPA will help bring more garment products to Japan
Right after VJEPA went into effect with the import tax on Vietnam-made garment products lowered from 5-10% to 0%, both the Vietnam Textile and Garment Group (Vinatext) and the Vietnam Textile and Apparel Association (Vitas) signed important agreements with some big Japanese garment groups like Shikibo and Mitsui.
Vinatas’ Chairman Le Quoc An, who is also the chairman of Vinatex, said that Vietnam’s garment industry, with its competitive edges, can absolutely meet the requirements set by Japanese importers.
“More and more Japanese importers have shifted to place orders with Vietnamese exporters because they highly appreciate the stability and skill of Vietnamese workers,” An said.
However, in order to be able to take full advantage of the VJEPA with its 0% import tax rate, Vietnamese companies have to arrange materials themselves, which is not an easy thing. The companies have to use materials sourced from Vietnam, Japan or ASEAN countries.
vietnamnet, tt
|
