Viettien expands distribution network to Asia
By Van Nam - The Saigon Times Daily
HCMC - Viettien Garment Joint Stock Company this year plans to open general agents in six Asian countries comprising Myanmar, Indonesia, Malaysia, Singapore, Thailand and China in a bid to expand its distribution network.
The company is making effort to bring its brand widely to the Asian market, and balance export market step by step so as to avoid risks of too much concentration on one major market, said Bui Van Tien, general director of Viettien Garment Joint Stock Co.
Speaking at the award ceremony last weekend where Viettien Co. received a second-grade medal from the State president, Tien said that with the new strategy to restructure export markets and distribution system, Viettien looks to a better market structure with 25% of sales earned from Japan, 25% from the U.S., 29% from the EU and the remainder from other markets.
Viettien, which operates agents in Cambodia and Laos, currently has a domestic network of over 1,300 stores and sales agents.
“Under current economic downturn, it will be risky for apparel and textile sectors if they keep relying on just a few export markets,” Le Tien Truong, vice director of Viettien Garment Joint Stock Co., told the Daily.
The country exported 90% of apparel and textile products to the U.S. and E.U. in the previous time but it tends to shift to Asia at the current time.
Vietnam’s apparel industry is seeking to further tap South Korea, which is expected to generate a revenue of over US$1 billion this year. It earned US$904 million in apparel exports to South Korea last year.
“This year, we may face difficulties in the big market of EU and the scenario maybe a little bit brighter in the U.S and Japan. In the face of unfavorable forecasts, the apparel sector still aims to obtain US$18.5-19 billion in export turnover, US$3 billion higher than the figure last year,” said Truong.