VietNamnet Bridge - Weaving is believed to be the weakest link in Vietnam’s textile and garment value chain, but denim fabric is a strong point of local producers.

Both Vietnamese and foreign invested enterprises in the country make denim products. The localization ratio is 55-60 percent. 

The biggest denim manufacturers in Vietnam include Phu Cuong, Thien Nam, Viet Hong, Tuong Long and Phong Phu Corporation. Foreign invested enterprises in the field are mostly from Asia, such as Hyosung from South Korea and Texhong from China. 

TCE Group has a joint venture in Vietnam with the Vietnam Textile & Garment Group (Vinatex) and Thien Nam Investment & Development JSC.

TCE, South Korea’s leading group in the textile & garment industry, has many projects in Vietnam, with one in Nam Dinh province the largest.

Vietnamese enterprises have also invested in technology to make high-quality products. Phong Phu Corporation has shifted to knitting production lines, providing high-quality products to the domestic and export markets.

Analysts noted that though there are many denim projects in Vietnam, the investment in denim factories still continues. The denim manufacturing project with capacity of 30 million meters per annum has kicked off in Hoa Xa IZ in Nam Dinh province. The production line which covers all phases of the knitting process is worth $40 million.

Tuong Long’s products have been sold widely in Vietnam and overseas and have been used by well-known garment companies such as Express, American Eagle Outfitters and GU (Uniqlo)

Vietnamese enterprises have also invested in technology to make high-quality products. Phong Phu Corporation has shifted to knitting production lines, providing high-quality products to the domestic and export markets.

In the domestic market, Phong Phu, Saigon 3, Song Hong, Vietshing, Nha Be, Viet Tien, Protrade and Blue Exchange are the clients of Tuong Long. It is also a garment producer which makes products for Japanese brands.

According to Nguyen Thi Tuyet Mai, deputy chair of the Vietnam Textile & Apparel Association (Vinatas), Vietnamese enterprises are now willing to make high investments in production lines to strengthen ODM (original design manufacturer) and FOB production. Outsourcing doesn’t bring high added value. 

Foreigners seek materials

As the denim and jeans industry has been developing in Vietnam, exhibitions and trade fairs have been organized in the country.

The third Denimsandjeans Vietnam is expected to take place in Vietnam in late June, gathering 40 denim and accessories manufacturers from Vietnam and 10 other countries. 

Sandeep Agarwal, managing director of Denimandjeans, said in the previous two years, saw clients from the EU and US with Top Stitched, Two Tone Denim, Laser Art, Mother Earth, and We Rock.