Vietnam is a significant manufacturing hub for the retail behemoth Uniqlo.

DNHN - Although Uniqlo entered the Vietnamese market in 2019, the manufacturing partnership with the local partner had been established for over two decades before that.

Vietnam has emerged as a significant production hub for the Uniqlo brand in Asia, contributing 240,000 related workers and 80 partner factories. Mr. Nishida Hideki, General Director of Uniqlo Vietnam, recently disclosed this information, emphasizing the significance of "Made in Vietnam" products within the company's global value chain.

Although Uniqlo entered the Vietnamese market in 2019, the manufacturing partnership with the local partner had been established for over two decades before that. Mr. Nishida Hideki stated that Vietnamese laborers manufactured over fifty percent of the merchandise sold at Uniqlo stores in Vietnam over the past year.

Mr. Nishida's remarks were delivered within the framework of the growing market share that Vietnamese-made fashion products are acquiring in major international markets.

Mr. Tadashi Yanai, Chairman of the parent group of Fast Retailing, stated previously in 2021 that Vietnam is the second largest production base of the company in the world. At that time, 45 garment factories in Vietnam were partnered with Uniqlo as a purchasing partner to supply the market.

As of 2023, Fast Retailing will have established collaborative partnerships with 69 processing factories and 11 raw material supply factories in Vietnam, as reported by the Ministry of Industry and Trade.

Vietnamese partners are regarded as exceptionally competent. Many of the brand's core products, which necessitate sophisticated manufacturing processes, are produced domestically. Illustratively, the product line comprises faux-sheep fleece jackets, thermal clothing featuring exclusive technology (HEATTECH), and ultra-light down puffer jackets (ULD) crafted entirely from recycled PET plastic bottle material.

Takumi (the group's textile experts) was deployed by Fast Retailing to ensure partners adhere to independent global standards for product quality and safety, as well as to share knowledge and experience. While refraining from divulging precise information regarding forthcoming initiatives, Mr. Nishida reaffirmed his dedication to further augmenting and broadening the store system in Vietnam with Vietnamese goods.

Despite operating in a volatile economic environment, Uniqlo expanded its store count by seven this year, for a total of twenty-two. An independent store situated in a prime location with a view of Hoan Kiem Lake (Hanoi) is the most recent addition. repurposed from an ancient structure.

Shortly, it is anticipated that Uniqlo will further expand and increase its production rate in Vietnam, riding the positive growth momentum. Mr. Nishida Hideki reiterated the organization's dedication to guaranteeing the quality and safety of their products, while also highlighting their intention to actively participate in the advancement of the manufacturing sector in Vietnam.

As the Southeast Asian market enters a growth phase, according to Uniqlo, the company's customer base continues to expand. In the fiscal year ending in August, the parent group's operating profit increased by 28%, according to the business results report.

According to Reuters, this was due to the recovery following the pandemic and the depreciation of the yen, which boosted the value of international sales.

The Japanese retail behemoth generated 2,770 billion yen in revenue and 381 billion yen in profits. Two new records have been surpassed by Fast Retailing.

The largest clothing manufacturer in Asia is commencing a new phase of growth to surpass 10,000 billion yen in revenue and thus establishing itself as a "truly global company."

The company anticipates reducing that figure by half within the next five years. Furthermore, Fast Retailing Group's international market revenue for Uniqlo comprises half of its total revenue for the first time this year.

Minh Anh (T/h)