www.ChinaSourcingReports.com

HANOI

Laos

Thailand

Cambodia

Ho Chi Minh City

China

VIETNAM

Binh Duong

Nam Dinh

Vietnam supplier profi lesDetailed profi les of 35 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 163 top-selling export products ranging from caps to rompers

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

October 2013US$150

Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

Essential sourcing intelligence

Baby & Children’s Wear & Fashion Accessories

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BABY & CHILDREN’S WEAR & FASHION ACCESSORIESSupplier capability in Vietnam

The baby and children’s wear and fashion accessories industry in Vietnam continues to benefit from strong demand generated by conventional overseas markets. Exports in 2012 expanded significantly as a result of improving economic conditions in destinations such as the US and the EU. The sector expects short-term development to be sustained, with the country set to enter trade agreements forecast to be advantageous to the line.

The low cost of labor in Vietnam helps the industry maintain a high degree of competitiveness against China. Complementing this strength is the growing adherence of suppliers to various product and manufacturing standards. Companies exporting to the EU, in particular, subject garments to testing and are typically certified free of substances harmful to children.Support from the government and nonprofits has also allowed the sector to progress further.

Objective, methodology & scope

1. Suppliers generally expect to keep prices steady in the next six months in an effort to ensure competitiveness and attract repeat orders. Some companies plan to raise quotes, however, due to the rising expenditure on raw materials.

2. Manufacturers forecast turnover to generally stay healthy in the coming year as customers from North America and the EU maintain their sourcing activities in Vietnam. Some suppliers have plans to penetrate new locations in the Asia-Pacific region to supplement revenue from traditional destinations.

3. Price competition is regarded as the most critical challenge confronting the sector. Although Vietnam offers lower labor cost than China, product prices in the former are still largely

Key findings

Executive Summary

In this report• 15 in-depth company profi les• 20 short company profi les• 163 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

This Vietnam Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Vietnam in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different classifications of baby and children’s wear and fashion accessories available in Vietnam, including garments and headwear and neckwear. Each product category has its own price guide that describes features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Vietnam.

The Products & Prices section details the features and price ranges of baby and children’s wear and fashion accessories. It also examines the design and manufacturing processes, emerging aesthetic trends, main materials used, and sourcing centers where components are procured.

higher. The level of development in the latter is also more advanced, which results in more cost-effective production processes.

4. Enhanced safety and aesthetics are the most prevalent design trends. To meet EU regulations, manufacturers are curbing the use of toxic dyes and fire retardants. Hypoallergenic additives are also being utilized on fashion accessories. In terms of styles, printed motifs are most commonly employed in garments.

5. The leading sourcing centers for children’s garments and fashion accessories are located in the southern region of the country, particularly Ho Chi Minh City. A smaller number of makers are located in the north, and they are generally concentrated in Hanoi.

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CONTENTS

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2013 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-15981-8-9

Contents

EXECUTIVE SUMMARY 3 Key fi ndings Objective, methodology & scope

INDUSTRY OVERVIEW 9 Exports

Products & prices 11 Production & export statistics Typical parts & components Price guides

Supplier survey 18 Export prices Export sales Export markets Major challenges R&D focus

SUPPLIER PROFILES 22 Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 35 verifi ed suppliers

PRODUCT GALLERY 71 Casual wear Sleepwear & underwear Swimwear Headwear Sportswear

CONTACT DETAILS 101

4 Vietnam Sourcing Reports

Sample page only8

ag 2arison of supplier location,f supplier location,

export capability capability verifi ed supplierssuppliers

DUCT GALLERY UCT GALLERe peasual wearal wearSleepwear & underwear eepwear & underwSwimwearSwimwearHeadwearHeadweaSportswearSportswe

CONT

Industry Overview

Industry Overview

Supplier summary

Data: All surveyed suppliers

Suppliers surveyed 35Export sales $110mnExport ratio 81%Capacity utilized 75%Full-time employees 21,210

ExportsBaby & children’s wear$ million

Headwear & neckwear$ thousand

2011 2012 2013* 2009 2010 2011

231

579.6

672.9

279.3

108,916

135,515 136109

580673

279

Source: General Department of Vietnam Customs Source: International Trade Centre* Jan-May

www.ChinaSourcingReports.com 9

Robust demand from traditional markets has been propelling the strong performance of the baby and children’s wear and fashion accessories industry in Vietnam over the past two years.

Outbound shipments of baby and children’s apparel, which is under the garments and textile sector, rose 16 percent to about $673 million in 2012. For the first five months of 2013, overseas sales reached $279.3 million, a 19 percent increase from the same period last year. Total revenue is expected to expand between 10 and 20 percent by yearend, barring any unforeseen developments.

The positive figures are primarily credited to strong demand in the US, which accounted for roughly two-thirds of foreign sales last year. Buyers from this country have been boosting their sourcing activities in Vietnam as rising labor cost in mainland China continues to drive clothing prices higher. Trade between Vietnam and the US is expected to flourish further as they step up negotiations for the Trans-Pacific Partnership agreement.

Under the deal, tariffs on garment exports that adopt US-made fabrics will be reduced from 17 percent to zero. The pact is projected to raise shipments by up to 13 percent annually and create about 6 million jobs by 2025.

The sector is also benefitting from steady sales in the EU. Deliveries to the bloc grew 6.2 percent to $76.2 million last year as more members recover from their respective financial difficulties. Some of the key markets in the association are Spain, Germany, Italy, France and the UK.

Similarly, strong interest in the Asia-Pacific region is driving the growth of the industry. Exports to Japan swelled 40 percent to $5.6 million last year. Income from South Korea jumped

70 percent in 2012 amid continuous discussions for a free trade agreement.

Growing demand from emerging markets is fuelling the bullish outlook of suppliers for 2013. Makers have been receiving more orders from alternative destinations such as Angola, Chile, Brazil and Cuba for the past 12 months.

The fashion accessories sector also posted gains. Income from headwear, in particular, picked up about 71 percent to $231,000 in 2011, according to the latest data available. This was after the line recorded a 24 percent increase in the period before. Owing to the improving financial climate in major markets, the segment is projected to continue its upward trend for 2013.

Competitive advantagesLower cost of labor is one of the sector’s strongest suits. More OEM customers are moving their outsourcing activities from China to economical hubs such as Vietnam to save on manpower expenditure.

Workers in Vietnam are paid between $80 and $96 every month, which is about one-half compared with those in China. The difference is even apparent against the southern manufacturing zone of Shenzhen, where salaries start at $140. Bangladesh and Cambodia

boast more affordable salaries at $38 and $75, respectively. Issues regarding workers’ safety, however, are hurting their attractiveness to foreign investors.

Another edge possessed by domestic suppliers is the strong support from the government and NGOs. Since 2010, makers have been receiving assistance from the Ministry of Industry through the National Trade Promotion Program, which is aimed at helping SMEs advertise their products abroad. Manufacturers also obtain preferential loan rates from a number of lenders such as the Vietnam Development Bank and Techcombank. These institutions offer interest rates that are 2 to 4 percent lower than the average levels.

Acceptance of small orders helps domestic enterprises attract more foreign customers. Most companies have an MOQ of 25 pieces per model or less without charging additional costs. Other supply zones allow at least 100 pieces for sales to process.Sample page only

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Supplier Profiles

SUPPLIER MATRIX

Company Year established

Head office location

Factory location(s) Ownership Full-time employees

Part-time employees

ISO certified

In-depth profiles

Babeeni 2007 Long Bien (Hanoi)

Ha Dong, Thuong Tin (Hanoi)

Locally owned 50 100 ✗

C&T 2006 Ba Dinh (Hanoi)

Thuong Tin, Hai Duong (Hanoi)

Locally owned 50 ✗

Do Lam Gia 2003 Hoc Mon (Ho Chi Minh City)

Hoc Mon (Ho Chi Minh City)

Locally owned 120 Pending

Dong Xuan Knitting

1959 Hai Ba Trung (Hanoi)

Hai Ba Trung (Hanoi), Khoai Chau (Hung Yen)

Locally owned 1,000 ✓

Duc Quang 2008 Cau Giay (Hanoi)

Tu Liem (Hanoi)

Locally owned 40 30 ✗

Hand Embroidery Ninh

2001 District 1 (Ho Chi Minh City)

District 7 (Ho Chi Minh City)

Locally owned 1,000 ✗

Kieu Nga 2006 Binh Thanh (Ho Chi Minh City)

District 12, Go Vap (Ho Chi Minh City)

Locally owned 25 5 ✗

Lan Hanh 2002 Di An (Binh Duong)

Di An (Binh Duong), Tan Binh

(Ho Chi Minh City)

Locally owned 500 50 ✗

Lan Viet 2003 Cau Giay (Hanoi)

Hoai Duc (Hanoi)

Locally owned 50 200 ✗

Nguyen Phan 2004 Ha Dong (Hanoi)

Bac Ninh (Bac Ninh), Van Lam (Hung Yen)

Locally owned 20 100 ✗

Tan Thanh Dat 2000 Di An (Binh Duong)

Di An (Binh Duong)

Locally owned 200 ✓

Tan Y 2008 Dong Da (Hanoi)

Gia Lam (Hanoi)

Locally owned 300 200 ✗

TG 2003 Hoan Kiem (Hanoi)

Hoan Kiem (Hanoi)

Locally owned 10 200 ✗

Thanh An Textile 2011 Binh Thanh (Ho Chi Minh City)

Go Vap (Ho Chi Minh City)

Locally owned 110 ✗

Vietnam Ball 2009 District 4 (Ho Chi Minh City)

District 12 (Ho Chi Minh City)

Locally owned 60 15 ✗

Short profiles

Anh Minh 2002 Tan Binh (Ho Chi Minh City)

Tan Phu (Ho Chi Minh City)

Locally owned 70 ✗

DYH 2011 Hoan Kiem (Hanoi)

Dong Anh (Hanoi)

Locally owned 50 ✗

Ha Thanh 2001 Long Bien (Hanoi)

Long Bien (Hanoi)

Locally owned 100 ✓

Hien Giang Woolen

2004 Hai Ba Trung (Hanoi)

Hai Ba Trung (Hanoi)

Locally owned 40 30 No

Hoang Dung Textile Co. Ltd

2004 Hoa Xa Industrial Zone (Nam Dinh)

Hoa Xa Industrial Zone (Nam Dinh)

Locally owned 150 No

22 Vietnam Sourcing Reports

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Supplier ProfileSupplier Profiles

Capability

Contact details

Babeeni Vietnam Co. Ltd

Annual sales $2,500,000 Share of total sales 100% Annual export sales $2,500,000 Total monthly capacity 60,000 pieces Average monthly output 50,000 pieces Capacity utilized 83% Average monthly exports 50,000 pieces Export ratio 100%

Company facts

Year established 2007 Head offi ce location Long Bien (Hanoi) Factory location(s) Ha Dong, Thuong Tin (Hanoi) Ownership Locally owned Full-time employees 50 Part-time employees 100 Total annual sales (all products) $2,500,000

Sales & output: Baby & children’s wear & fashion accessories

Babeeni has been exporting garments and fashion accessories for children since 2007.

The main markets are the US and Canada, accounting for 60 percent of shipments. The UK absorbs about one-third of turnover. The rest goes to Australia.

Products in the line include dresses, suits, pants, hair bows and bobby pins for children 3 months to 14 years old. Prices are between $1 and $3 for fashion accessories, and $3 and $14 for garments.

Pure cotton and cotton-polyester are the materials used. They are sourced from Ho Chi Minh City and Binh Duong province.

Babeeni has three designers who release up to 20 models every month. Samples are finished within a week, depending on complexity.

The company runs a 5,000sqm workshop in the Hai Duong city of Hanoi. The workshop is equipped with 30 sewing machines sourced domestically. Most production processes, including embroidery, are done by hand.

The plant can roll out 60,000 pieces every month. The average monthly output is 50,000 pieces.

There are 50 permanent employees. An additional 100 staff members are hired for bulk orders. Four inspectors check all finished items.

Plastic bags and cartons are normally used as packaging. Labels are available upon request. The MOQ is 300 pieces or sets. Delivery time is 30 days.

The company is a member of Vietnam Textile Association. Babeeni participated in last year’s Magic Show in Las Vegas.

Materials used Cotton ✓

Polyester ✓

Nylon ✗

Canvas ✗

Wool ✗

Other ✗

Exports by product Casual wear 70%Sleepwear & underwear –Swimwear –Headwear 30%Sportswear –

Exports by market North America 60%EU 30%Europe (non-EU) – Asia-Pacific 10%Middle East –Other –

Business contactDUONG Thi Phuong HienPhone (84-4) 3668-6011 Fax (84-4) 3668-6012 E-mail info@babeeni.com.vn export@babeeni.com

URL www.globalsources.com/bvcl.co www.babeeni.com Address 35 Le Mat Street, Viet Hung, Long Bien, Hanoi, Vietnam

28 Vietnam Sourcing Reports

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Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model: HB178MOQ: 300 piecesPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $1 to $2Description: Hairband; 100% cotton; in various colors and sizes

Model: DR1084MOQ: 300 piecesPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $8 to $14Description: Party dress; 100% cotton; smocked pumpkin trimming; in various colors and sizes

Model: HB181MOQ: 300 piecesPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $1 to $2Description: Hair bow; 100% cotton; in various colors and sizes

Model: HB2MOQ: 300 setsPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $1 to $2Description: Hair bow set; 100% cotton; green; in various sizes

Model: DR1389MOQ: 300 piecesPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $7 to $10Description: Party dress; 100% cotton; snowflake trimming; in various colors and sizes

Model: DR1085MOQ: 300 piecesPackaging: Plastic bag, cartonDelivery: 40 daysPrice: $8 to $14Description: Jumper; 100% cotton; smocked birds trimming; in various colors and sizes

www.ChinaSourcingReports.com 29

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eand; 100% cotton;cottvarious colors and sizess colors and sizes

Model: del: HB181B181MOQ:Q: 300 piecePackaging:ging: PlastDelivery:DPrice:PDesc

For other inquiries E-mail: service@globalsources.comTelephone Hotline: (65) 6547-2800

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