The above information was given at the International Conference with the theme "Promoting export recovery momentum to key markets - Opportunities to bring Vietnamese fashion, furniture and household goods into the international distribution system" held on June 6, 2024 in Ho Chi Minh City.

This workshop is one of many activities within the framework of the event series "Connecting international supply chains 2024" (Viet Nam International Sourcing 2024) organized by the Ministry of Industry and Trade in coordination with the People's Committee of Ho Chi Minh City from June 6-8, 2024 at the Saigon Exhibition and Convention Center (SECC). This thematic workshop aims to provide updated information and in-depth assessments of changes in demand, tastes, consumption trends; development trends, transformation of the fashion, interior and household industries in some key export markets; as well as specific recommendations for domestic enterprises to participate more deeply in the global value chain, as well as better adapt to new standards of sustainable development. In addition, businesses participating in the workshop have the opportunity to meet, exchange and share with foreign buyers to seek cooperation opportunities, bringing Vietnamese fashion, furniture and household goods deeper into large-scale foreign distribution systems. 

Export markets are increasingly demanding.

Speaking at the workshop, Mr. Ta Hoang Linh, Director of the European - American Market Department, Ministry of Industry and Trade, said that overall, the export turnover of fashion, furniture and household goods of Vietnam has recorded impressive growth in recent years. This group of products has contributed significantly to the total export value of Vietnamese goods to the international market, creating a solid position and increasingly participating in the modern global supply chain.

Despite unprecedented difficulties in the post-COVID-19 period, which caused a decline in export turnover, this industry group has had a positive start since the beginning of 2024. Demand in key export markets has gradually recovered, signaling a positive outlook for fashion, furniture and household goods in the coming time.

Mr. Ta Hoang Linh, Director of the European - American Market Department, spoke.

However, according to Mr. Ta Hoang Linh, many internal limitations and increasingly strict regulations from export markets are posing significant challenges for Vietnamese export enterprises. Accordingly, customers and partners have increasingly high requirements related to greening the production and supply chain, sustainable development criteria, and circular production. 

“ To maintain stable growth and seek opportunities to penetrate deeper and more diversely into large global distribution systems, Vietnamese enterprises cannot go against the trend of green and sustainable economy. Besides, with the characteristics of the fashion, interior and household goods industries requiring constant changes in designs to suit consumer tastes, enterprises need to be proactive and have a clear strategy in researching and developing new products” - Mr. Ta Hoang Linh recommended.

Assessing that the fashion, interior and household goods industry of Vietnam in general and Ho Chi Minh City in particular still has many export advantages, especially in terms of product quality, technical level, ability to meet strict requirements on labor, environment, especially tariff incentives of each market, however, according to Mr. Tran Phu Lu, Director of the Center for Trade and Investment Promotion of Ho Chi Minh City, the export of this industry has to face difficulties and challenges, such as financial and human resource limitations that make it difficult to compete with major brands in the world; difficulties in building and maintaining brands that require a lot of investment costs and time; passive dependence on the supply chain.

In addition, the rapidly changing global export market requires businesses in the industry to continuously adapt so as not to fall behind their competitors; and meeting greening standards, especially those of the European Union (EU), requires businesses to create a greener production and supply environment, complying with sustainability standards for industrial products.

As one of Vietnam's key export products, Mr. Tran Nhu Tung, Vice President of the Vietnam Textile and Apparel Association, also said that the biggest pressure on Vietnamese textile and garment enterprises today is to switch to green production. Partners have now required factories to use clean energy, with a commitment to a roadmap and specific actions for sustainable production transition, not just recommendations.

Currently, all customers, especially Europe, have issued many policies to tighten green production activities and businesses must meet these criteria to receive orders. According to Mr. Tran Nhu Tung, many importers require businesses to use completely clean energy, which means businesses must use 100% solar energy. This causes many difficulties for businesses when clean energy sources are not enough to use. 

Greening production and building sustainable supply chains

Faced with these challenges, Mr. Tran Phu Lu said that this requires fashion, interior and household businesses to reshape their production processes and invest in green technology to optimize production processes and minimize waste. In addition, building a sustainable supply chain also plays an important role. Businesses need to work closely with suppliers to ensure that raw materials and products are produced and transported sustainably and efficiently.

In addition, fashion, interior and household businesses also need to proactively invest, apply digital transformation and technological innovation in production and management. This will create opportunities to access international markets.

At the same time, with the characteristics of the market in the coming period, businesses in the Fashion, Interior and Household industries need to develop a number of plans to respond, be flexible in production and operation, closely follow the market and partners to have forecasts, develop plans for production, maintain business operations, and be flexible in converting products according to market demand, especially potential new markets.

For the textile industry, competition in the textile industry is very high. To develop in the long term, according to Mr. Tran Nhu Tung, Vietnamese enterprises must focus on creating products with higher added value. To do that, enterprises need to invest in machinery and equipment to increase productivity and quality; diversify products and diversify markets.

Also at the workshop, many experts, experienced speakers, with high expertise and diverse perspectives from the European Chamber of Commerce in Vietnam (Eurocham), the Handicraft and Wood Processing Association of Ho Chi Minh City (HAWA), as well as representatives of several large foreign distribution corporations in the fashion, furniture and household industries attended the workshop and shared multi-dimensional perspectives, covering prominent areas, of particular interest to businesses when participating in the international supply chain.

Thuy Linh