The recently concluded TPP agreement, with Vietnam as signatory, only adds to the other inherent strengths that the country has in apparel manufacturing from disciplined workforce to political stability. In 2015, Vietnam exported garments worth US $ 27.3 billion, employing 2.5 million workers and constituting a fifth of all new jobs created in the country. In a series of articles on ‘Why Vietnam…?’ both from a manufacturing and buyers perspective, Apparel Online brings views of many companies and individuals who are working in and with Vietnam. The first two articles in the series are from people who have chosen to work in Vietnam, one as a manufacturer and the other representing a buying office and their experience of the country. Robert Nicholson, Chief Representative of More UK Ltd. and Anil Mishra, Country Manager, Asmara – Vietnam , share what makes Vietnam an exciting hub for garment manufacturing and sourcing…
Apparel manufacturing was introduced to Vietnam by the communist countries of similar ideology in the 1980’s, specifically with Policy of economic reforms initiated in Vietnam in 1986 with the goal of creating Vietnamese economy liberalized its trade policies. For a brief period thereafter, the Europeans exerted influence in this domain. But blitzkrieg was delivered in the former US President Bill Clinton’s regime as the trade lines between the US and Vietnam was revived at an unprecedented rate, taking the apparel export turnover of mere US $ 5 billion in 2005 to US $ 25 billion (2015) in a decade’s time. A key role in strengthening the exports from the country has been played by international buying houses who have successfully tapped the country’s potential to the mutual advantage of both. Anil Mishra, Country Manager, Asmara – Vietnam , one such buying house, presents why Vietnam is the preferred destination and how the Vietnamese operations of Asmara have shaped up since its entry in 2008…
Having spent 12 years in Vietnam and developed the business for Asmara from scratch, Anil understands the country, its people and also how to synergize the sourcing needs of Asmara with the inherent strengths that the country has. From identifying the product that should be sourced to which factory is best suited, Asmara VN is a champion of the game.
Products sourced
While Asmara as a Group has been known for its competence in sourcing high-fashion garments, Asmara Vietnam is predominantly sourcing outerwear from Vietnam. “Whether they’re down jackets, padded jackets, fake down, eco-down, quilted jackets, technical jackets, seam-sealed jackets (men’s and women’s both) – Vietnam can do it all,” Anil informs. For Asmara the second strongest category thereafter is bottoms, and followed by contemporary wear which includes blazers, dress pants and blouses. Today, Asmara Vietnam generates around 20 per cent of the total business and the turnover is in the range of 18 to 20 per cent. The numbers go on to exemplify the significance of the Group’s Vietnamese sourcing arm. Vietnam’s next strength is its competence in circular knits – the expertise although belongs to Koreans and Taiwanese-origin factories in the region, and Asmara is not looking in that areas as of now as it has other regions equally competent for the product.
Building agility into systems
Another differentiator for Asmara Vietnam is its ability to source 12 collections per buyer a year – a model that Asmara VN has practiced since its inception in the country. “In 2008, 12 collections business was hard to believe, because back then factories knew about 2 or 4 collections only,” Anil recounts. To break the paradigm, the first thing Asmara VN did was to approach fashion schools in Vietnam and train the students to understand the importance of fast fashion cycle. Concepts of how important is product development and delivery, were detailed on to shape the young minds. “Lead time, product development, faster cycle and R&D are crucial to Asmara’s DNA. That is also how we crafted a niche in Vietnam for ourselves,” Anil avers. Today the average age of the 142-people strong Asmara team is 29 years, who are from 10 different nationalities which includes Italian, French, German, Dutch, Philippians, Cambodian, Sri Lankan, and Japanese, Indian alongside Vietnamese.
At the core lies the product and as a thumb rule Asmara provides quality-inspected products on time to its buyers. Quality Assurance teams from the company are deployed at all the factories to conduct production and planning meeting and SOP follow-ups. The company also conducts several training programmes to keep its team abreast of the latest developments in the field of fashion and resources. “We even bring in personnel from factories in different regions together and do the brain storming sessions,” shares Anil on how factories are made a part of the process instituting paradigm shifts. Even the Project Asmara Knowledge Bank was commenced on the same strain, which includes training modules for developing product knowledge for youngsters who join the trade, even from the buyer’s end, with zero knowledge, notes Anil. “These are the guys who are giving us orders, and they need to know about manufacturing and have to gain product knowledge as integral part of supply chain. Thus there are all the more reasons to impart training at the entry level and keep the system agile,” concludes Anil.
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