Vietnam Sourcing: Jewelry & Fashion Accessories Industry overview

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1 Countries» About» Contact us Vietnam Sourcing: Jewelry & Fashion Accessories Industry overview Vietnam Vietnam Sourcing: Jewelry & Fashion Accessories Suppliers & products Industry overview Export data Product features Supplier survey Trade associations PDF downloads Vietnam Sourcing: Jewelry & Fashion Accessories Jewelry Bags & wallets Headwear & neckwear Download PDF of page This section discusses key issues affecting export manufacturers in Vietnam, offering insight into industry composition and important supply centers. Sections Highlights Vietnam jewelry & fashion accessory exports Competitive advantages Vietnam jewelry & fashion accessory suppliers Charts Jewelry & fashion accessory exports Industry export markets Supplier exports Supplier production Supplier locations map Click charts below to enlarge The jewelry and fashion accessories industry in Vietnam is trying to expand its clientele by improving international business relations and product design. Vietnam Sourcing: Bags Vietnam Sourcing: Wicker Baskets Vietnam Sourcing: Home Furnishings Vietnam Sourcing: Lawn & Garden All Sourcing Countries Philippines Vietnam The segment, which is under the handicrafts sector, has been receiving support from the government and local trade associations to boost export sales. Over the past decade, the national administration has been entering into free trade agreements or FTAs with various countries to reduce tariffs, and import and export quotas. Among these economic talks, the latest is the Trans-Pacific Partnership, which is expected to come into effect by end The markets involved in this negotiation are Vietnam, Australia, Brunei, Chile, Canada, Japan, Malaysia, the US, New Zealand, Peru and Singapore. Vietnam has also entered into collaborations with other destinations where it is stipulated that tariffs will decrease by 3 percent this year and eliminated by These FTAs are with Chile, which was enacted in 2014, and Japan, ASEAN-India and ASEAN-Australia-New Zealand in Other ongoing economic talks are with the EU, European Free Trade Association, South Korea, and Customs Union of Belarus, Kazakhstan and Russia. Should these agreements push through, export fees to these trade blocs and countries are expected to be removed within the next seven years. Trade associations, particularly the Vietnam Handicraft Exporters Association or Vietcraft, have also been supporting the sector, particularly in terms of providing training for improving designs. Creating new styles and keeping up with trends are concerns for the industry since most suppliers rely on clients specifications and traditional methods of manufacturing. In 2012, Vietcraft established the 1,200sqm Hanoi Design Center, which hosts workshops on product design and development, meeting international standards and market research. The project was funded by the Swedish International Development Cooperation Agency. Together with volunteers from the School of Industrial Design of Sweden s Lund University, the Center trains local stylists and entrepreneurs to make models that are aesthetically pleasing and multifunctional at the same time. Companies that participated in the program were assisted to put together collections for international trade shows, including the Hanoi Gift Fair, Lifestyle Vietnam in Ho Chi Minh City and Ambiente in Germany. The building also serves as a museum and showroom for all products that were created in the workshops. Vietcraft plans to expand the program by establishing a National Design Center, which will benefit all handicraft manufacturers in the country. Vietnam jewelry & fashion accessory exports Competitive advantages The bags and wallets line is the largest contributor to turnover among the sector s product segments Earnings from jewelry plunged from $2.5 billion in 2011 to about Suppliers meet the requirements of both ODM and OEM clients A deep pool of artisans proficient in various manufacturing processes Soaring expenditure for imported raw materials Underdeveloped ancillary production processes Soaring prices of Roughly 850 manufacturers of leather goods About 12,000 subcontracting manufacturers of precious stone and metal jewelry

2 Vietnam jewelry & fashion accessory exports Competitive advantages $230 million in 2012 Bag and wallet exports jumped from $157 million to about $300 million in 2012 Ready availability of plant-based materials fuel and electricity Three industry segments: small, midsize and large suppliers Vietnam jewelry & fashion accessory exports According to the International Trade Centre, the bags and wallets line is the largest contributor to turnover among the industry s product segments at nearly 40 percent. Jewelry, and headwear and neckwear, each account for about one-third of overseas shipments. Earnings from jewelry plunged from $2.5 billion in 2011 to about $230 million in This was brought about by a 10 percent export tariff imposed by the national government on all items made of gold, which discouraged suppliers from accepting orders. The EU is the main market for this category, comprising roughly $70 million of sales. France, the UK, Germany, Spain and Denmark are the key destinations there. Switzerland is another significant market at $50 million. Japan takes up $42 million worth of shipments. Other important destinations are Australia and the US at $20 million and $18 million, respectively. Bag and wallet exports jumped from $157 million to about $300 million in 2012 because of surging orders from a recovering US economy. The country contributed about $130 million to the line s total revenue that year. Japan is the second-largest market at $63 million, followed by the EU at $45 million. Italy, Germany, France, Belgium and Spain are the primary markets in the association. Earnings from headwear and neckwear increased from $170 million to $234 million in The US is the main market, accounting for $120 million in sales. Japan and the EU take up $42 million and $30 million worth of orders, respectively. Competitive advantages The industry possesses a number of strengths that help propel the sector. Suppliers have much experience coordinating with clients for customization. They likewise accept small orders to attract new customers. The majority of companies accept MOQ as low as 50 pieces per model without charging additional costs. Buyers normally have to place big orders to enjoy the same price level sourcing from other hubs. The ready availability of raw inputs from across the country is another strength of the sector. Bamboo, rattan, water hyacinth and seagrass can be purchased from domestic vendors, allowing them to offer competitive prices for items made of natural components. Vietnam also has a deep pool of skilled artisans who are adept at weaving, embroidery, crocheting and other labor-intensive

3 processes. These workers are based in more than 3,000 craft villages in the nation. Another competitive advantage enjoyed by the industry is support from local trade organizations such as the Vietnam Handicraft Exporters Association and Vietnam Trade Promotion Agency. These groups arrange exhibits for SMEs to showcase products abroad and provide training on marketing and business skills. The industry is facing a number of roadblocks to its progress. Soaring expenditure for imported raw materials compounded by underdeveloped ancillary production processes make it difficult for enterprises to fulfill large orders. Local vendors of leather and textiles can only meet 50 percent of demand. Consequently, fashion accessory manufacturers have to import these inputs, particularly from mainland China. The Vietnam National Textile and Garment Group or Vinatex plans to address this concern by building two factories dedicated to solid dyed fabric production, two plants to manufacture yarn-dyed textiles and a workshop to roll out 6 million meters of wool annually. Construction of these facilities is projected to be completed within this year. Through this project, Vinatex hopes to increase the supply of raw components to about 70 percent by 2020, thereby lessening handicraft and garment companies dependence on imported inputs. The association also encourages its members to invest in auxiliary material production to develop a complete supply chain. Other components that have increased quotes this year are bamboo by 9 percent, rattan by 20 percent and buffalo horn by 16 percent. Although the price of gold in Vietnam decreased by 25 percent in 2013, it is still about $500 more expensive per gram compared with those offered by other sourcing hubs. Aside from raw materials, spending for electricity has surged by nearly 1.5 percent. Labor costs have likewise climbed with the recent approval of a 15 percent adjustment in the minimum wage. Suppliers, on the other hand, have had to retain quotes in spite of these burgeoning expenses to remain competitive, particularly against manufacturers from India, mainland China, Bangladesh and Indonesia. The official number of jewelry and fashion accessory enterprises in the country is not available because the segment is categorized under the larger handicrafts sector. The Vietnam Leather, Footwear and Handbag Association lists roughly 850 members that provide about 1 million jobs. Locally owned companies account for nearly 70 percent of total makers. The rest is foreign invested, mainly from Taiwan, Thailand, South Korea and Japan. There are around 12,000 subcontracting manufacturers of precious stone and metal jewelry across the country, but only a few have export capability. In addition, there are thousands of family-run workshops in craft villages that create handmade models. These artisan areas are located in the Thuy Ung district of Hanoi and Do Hai in Ha Nam province for horn jewelry, Van Phuc in Hanoi for silk neckwear, and Kieu Ky in Hanoi for leather bags. There are approximately more than 700 communities that produce natural fiber fashion accessories. Small makers have less than 100 workers. Annual overseas revenue is less than $1 million. Factories cover an area of up to 2,000sqm. They can create about 50,000 pieces every month. Midsize companies employ less than 200 staff members. Foreign sales can reach $2 million every year. Facilities can measure up to 5,000sqm. Total monthly capacity is less than 200,000 pieces. Large enterprises have more than 200 employees. Annual overseas revenue exceeds $2 million. Workshops are larger than 5,000sqm and can roll out at least 200,000 pieces every month. Hanoi and Ho Chi Minh City are the two main sourcing hubs for all product categories because of their numerous craft villages. These areas also attract investment in industrial zones and have better infrastructure, including proximity to seaports. Other supply centers are the provinces of Ha Tay, Thai Binh, Ninh Binh and Ha Nam for embroidered handbags and wallets. The Mekong River Delta provinces such as Hau Giang, Vinh Long and Dong Thap specialize in water hyacinth items. Factories that mass-produce fashion accessories are largely located in the Bac Giang, Hung Yen, Bac Ninh, Nam

4 Dinh, Dong Nai and Binh Duong provinces. Supplier Locations Map Vietnam jewelry & fashion accessory suppliers Click company names below marked Active to view verified suppliers and products featured on Global Sources Online. Companies marked Listing have basic information on Global Sources Online. Suppliers featured on Supplier Status Jewelry Bags & wallets Headwear & neckwear 296 Ltd Co. Center of Health Care & Vocational Training for Invalid Youngsters Listing Craft Beauty Co. Ltd Listing Doma Vina Production & Trading Co. Ltd Duc Quang Trading Development and Production Co. Ltd Hoang Long Handicraft Co. Ltd Listing Kim Son Imex Co. Ltd Ladoda Trading Service Producing for Leather Co. Quang Phu Import Export Trading Co. Ltd Quilts and Art Quoc An V.N. Co. Ltd Saigon Samy Co. Ltd Styluk Leather JSC Listing The Leather Fty Ltd

5 Suppliers featured on Supplier Status Jewelry Bags & wallets Headwear & neckwear TVP Garment JSC Vietnam Ball Cap Co. Ltd Vietnam Handicraft Co. Ltd 2012 Hinrich Foundation All Rights Reserved. Contact Us

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