It’s already the third edition lying ahead: on June 27-28 Ho Chi Minh City locates again the denim fabrics trade show Denimsandjeans Vietnam. The Far Eastern country has just been ranked in the top 5 as the best sourcing destinations in the world according to the latest Apparel Survey Report released by Mckinsey. We talked to Denimsandjeans Vietnam organizer Sandeep Agarwal about the novelties of the invite-only show and the prospects he sees in the denim platform.
How has the Vietnamese market developed since your first event in 2016 and what are its future perspectives compared to other Far Eastern sourcing countries such as India, Bangladesh, Myanmar or China?
Vietnam is really coming up really well and we have seen high growth happening in last two years. From $25 billion, the exports of apparel and textiles have increased to $31 billion and another 8-10% will be added this year. Vietnam is getting double advantage as increased costs and governmental regulations is forcing many Chinese companies to invest in Vietnam and hence buyers to source from here. Japan and Korea also are developing Vietnam as their main supplier of various products and investing heavily in the country. I have seen the latest technology percolate in the denim and apparel industry in Vietnam very quickly and due to governmental regulations, the unit setups are following environmental norms. This is very good for long-term sustainability goals of both suppliers and buyers. The impact of CPTPP will be very positive on the country's exports this year and FTA with EU will really add fuel to fire in exports. On the whole the next ten years are really positive for Vietnam!
For its third edition Denimsandjeans Vietnam changes location and moves from Gem Centre to Riverside Palace. What is the reason and what can exhibitors and visitors expect from the new location?
Actually there is not a very big reason to change the venue. The dates that we desired were not available at Gem, so we moved to Riverside which is also very close from there. We expect a larger participation from local garment companies and buying houses as many of them are keen to source fabrics and other materials for their increased apparel orders. Besides, we feel that we will have a larger participation of brands and retailers from Canada and Australia as signing of CPTPP has increased interest from these countries. US and HK companies always have a great presence at our show and we will have increased presence from there as well this year. EU companies have already started exploring the country since EVFTA is expected to be signed anytime between Vietnam and the EU. Fashion retailers from Europe are already showing great interest in the country and are testing qualities, prices etc. from different Vietnam exporters and some of them will join our show too.
You also organize Denimsandjeans India–don't you fear that the two events jeopardize each other since they happen in two different competing markets?
Actually India and Vietnam are not competing markets. India is a huge domestic market and is already the second largest market for jeans in the world. It is also a value added exporter but for high fashion items specially where lot of handwork is involved. Vietnam, on the other hand, is mainly an exporter of all kinds of apparel and one of the largest around the world. The country is experiencing big growth in apparel export. Most of the jeans exported from Vietnam are mainly in the mid to high segment specially with application of latest washing technologies. Buyers from various countries also seek to take advantage of a number of treaties that Vietnam has signed across the world. Thus both the markets are growing in two different ways and I don't see any competition among them.