Taking advantage of the domestic market
As an enterprise specialising in export, Viet Thang Jean Co., Ltd (VitaJean) has invested more in the domestic market over recent years.
"I realise that the domestic market with 100 million people is a very potential market for fashion manufacturers like us, and we had a plan to utilise this market five years ago,” said Chairman of the Board of Directors of Vitajean Pham Van Viet.
He noted that VitaJean has promoted the development of the V-Sixtyfour brand in the domestic market over the past five years, through adjusting design and colour to suit Vietnamese consumers. The V-Sixtyfour brand has become increasingly popular with domestic consumers. Therefore, revenue from the domestic market has partially offset the total revenue of the company in the context that the pandemic has disrupted the supply chain and exports.
VitaJeans is one of the businesses that has made a timely shift to the domestic market, in the context that the pandemic that has affected the supply chain and caused difficulties to the export of goods.
Economist Vo Tri Thanh said that the role of domestic consumption is important because total domestic consumption currently accounts for about 70-75% of GDP, so this is a huge demand force. Even in the period of complicated pandemic developments, income reduction, and economic difficulties, people still have real needs, not only for consumption of essential goods but also for tourism and services.
Right after the end of the social distancing period nationwide, the total retail sales of consumer goods and services in October 2021, immediately increased by 18.1% over the previous month. By November 2021, this figure rose by 6.2% over the previous month. This demonstrates the great potential of the domestic market in economic growth.
The domestic market offers huge potential for businesses
The Ministry of Industry and Trade has implemented many solutions to keep the domestic market smooth during this difficult period facing the whole country. Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade Le Viet Nga said that the Ministry of Industry and Trade has created linkages to keep goods circulated nationwide. It is the link between producers and distributors, between businesses and mass organisations, and between state management agencies with each other.
Therefore, even in the most difficult days of the pandemic, when people cannot go out due to the social distancing order, the supply chain of goods was also maintained and mobile markets were still held regularly, reaching deep into the most difficult places. When the epidemic is under control, the increase of the domestic market has contributed greatly to the overall growth of the economy.
“During the peak of the pandemic, Ho Chi Minh City and 18 southern provinces and cities, still had enough goods to meet their needs. Thus, we see that the internal strength of the production and trading of Vietnamese goods has been brought into play and this is the result that helps us maintain the supply chain of essential goods for the people and to make positive contributions to the economic growth,” Nga affirmed.
Vietnamese goods must conquer Vietnamese consumers
The domestic market has been assessed to have a strong recovery in 2022, when the COVID-19 pandemic is gradually brought under control. Pham Van Viet said that VitaJean is consistent with its goal of building a brand exclusively for Vietnamese people, with a design suitable to Vietnamese culture. In addition, the company will focus on technology investments to improve product quality in order to conquer the domestic market, Viet added.
Le Viet Nga said that the Ministry of Industry and Trade will continue to promote the “Vietnamese people prioritise using Vietnamese goods” campaign in 2022 to support enterprises conquering the domestic market. “We will advocate Vietnamese enterprises so that Vietnamese products can conquer Vietnamese people and win in the domestic market when 17 free trade agreements will take effect and foreign goods begin to flood the domestic market following the tariff reduction,” Nga affirmed.
“Currently, the Government is having solutions to stimulate domestic consumption demand. Besides this opportunity, businesses need to quickly digitalise, invest in technology, and catch up with customers' needs. In particular, Vietnamese goods must effectively conquer Vietnamese consumers well,” said Vo Tri Thanh.
