"Struggling with overcapacity issues, the denim industry has been scouting for overseas markets. Vietnam gets a special mention after Bangladesh. Vietnam has some good jeans manufacturing units but lacks a strong fabric base which is in fact an advantage for Indian or other countries’ denim mills. Though a difficult market and its proximity with China makes it even more difficult, still Indian companies are increasingly finding it a safe option. Raymond UCO Denim has been doing business in Vietnam for close to 6 years. Though small but Vietnam is having a significant place in the company’s long-term strategic goals."

Struggling with overcapacity issues, the denim industry has been scouting for overseas markets. Vietnam gets a special mention after Bangladesh. Vietnam has some good jeans manufacturing units but lacks a strong fabric base which is in fact an advantage for Indian or other countries’ denim mills. Though a difficult market and its proximity with China makes it even more difficult, still Indian companies are increasingly finding it a safe option. Raymond UCO Denim has been doing business in Vietnam for close to 6 years. Though small but Vietnam is having a significant place in the company’s long-term strategic goals.

A lucrative market for denim

Some companies are taking the trade exhibition route to enter the country. Anubha Industries, Ginni International, KG Denim, Malwa Industries and Ultra Denim, were the ones who participated in the Denim Show held in Vietnam. Akshat Chaudhary, Director, Anubha Industries, said Vietnam is a developing market for them. The company is expecting this positivity because it is already involved in yarn and knitted segment business with Vietnam and has created a strong base in the last 5-6 years. For denim, they are also reconnecting with their existing customers as well as new customers. Currently, Anubha Industries’ capacity in denim is 20 million metres per year and 90 per cent of its capacity is supplied to the Indian market. Bharat Patel, MD, Ultra Denim, also highlighted that it will take some more extra effort and at least 2 to 3 years for the country to establish its strong presence, but business will definitely come as garmenting, especially jeans manufacturing, is increasing here.

Some important players of Vietnam denim industry include Saitex, Phong Phu Corporation, Protrade Garment, De. M. Co. Vina (Royal Spirit Group), Le & Le Garment and Washing, Creative Resources International. Some mills figured out that the country prefers low-cost or price-conscious products and hence, they are modifying their business patterns accordingly. Ravish Malhotra, GM – Marketing of Ludhiana-based Malwa Industries points out they are concentrating on Vietnam mainly due to TPP which was supposed to happen but with its cancellation, they are facing difficulties. Now they are expecting that European markets’ support to Vietnam in the form of FTA will work out and as such will also benefit for them. Even in its entirety, policies may be in favour of Vietnam, but will help companies too. The only thing which is of major concern is to manage the lead time where Indian companies are lacking compared to China. Malwa Industries is working on it and is finding ways to improve the same. Beside India and Vietnam, the company is also catering to Turkey, Bangladesh.