With global trade facing uncertainties, Vietnam’s textile, garment, and footwear enterprises are increasingly turning to the domestic market as both a safety net and strategic growth avenue.

Production at Hung Viet Garment JSC.

Experts held that despite strong potential, the path to securing a firm foothold on the home ground requires greater innovation and competitiveness.

According to the Ministry of Industry and Trade, Vietnam’s domestic market is backed by a young population, rising incomes, and growing consumer demand for quality, style, and brand recognition.

Consumers, like Phung Mai Hanh, a resident in Ho Chi Minh City, said Vietnamese fashion is keeping pace with local trends, offering diverse, appealing designs and products.

Pham Van Viet, General Director of Viet Thang Jean Co., noted that after meeting international sustainability standards in markets like the EU, the US, and Japan, the company shifted focus to domestic distribution.

This decision has brought 15–20% annual growth, with e-commerce surging 30–40% in recent years. “Positive consumer feedback gives us the confidence to keep growing at home,” he said.

In the footwear sector, Vietnamese firms now hold around 40% of the market share, mainly in the mid-range segment, according to Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary of the Vietnam Leather, Footwear and Handbag Association.

The domestic market offers a vital buffer as global trade slows, with firms actively expanding distribution and brand presence online.

However, competition is fierce. Around 200 international fashion brands are operating in Vietnam, enjoying significant marketing and cost advantages.

In contrast, local firms face high production costs and marketing expenses that can account for up to 30% of product prices. Many businesses lack resources to invest in product design, market research, and branding, making it difficult to sustain long-term domestic growth.

Viet pointed out that Vietnamese enterprises often export limited product lines, and entering the home market requires costly reinvestment. It can take five years to recoup costs, many firms fail within the first two years.

Counterfeit and low-quality imports also flood the market, while raw material imports are taxed at 5–10%, unlike fully assembled imports, which are tax-free, placing local producers at a disadvantage.

Fragmentation in the domestic fashion supply chain further weakens competitiveness, with few local material suppliers and limited industry coordination.

Experts urged firms to enhance design and production capabilities, focus on sustainability, and adopt green practices such as using recycled and natural fibres.

Many domestic products now meet EU, US, and Japanese standards, and businesses hope Vietnamese consumers increasingly recognise their value.

Xuan called for stricter quality regulations and support for brand building to eliminate low-quality goods and boost consumer confidence.

Phan Van Chinh, Deputy Director of the Domestic Market Department, stressed the need to treat the local market as a primary growth driver, not just a fall back.

The Ministry of Industry and Trade is pushing policies to localise supply chains and developing an e-commerce platform to help SMEs combat counterfeits and expand reach.

To turn the domestic market into a true growth engine, experts advised Vietnamese firms to align product quality and brand identity with consumer expectations, while maintaining their export strengths. By doing so, the domestic market will become a solid foundation for long-term advancement of the industry.

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