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With 80 partner factories and 240,000 related workers, Uniqlo's General Director said Vietnam is one of Asia's key manufacturers.
The information was just supplied by Mr. Nishida Hideki, General Director of Uniqlo Vietnam. "From local partner factories, 'Made in Vietnam' products are distributed to more than 2,400 stores worldwide, playing an important role in our global value chain," he stated. Over half of the products sold at Vietnamese Uniqlo stores last year were made by Vietnamese manufacturers.
Mr. Nishida's comments were made in the context that fashion products, in general, produced in Vietnam are increasingly gaining a significant market share in major world markets.
According to Mirae Asset Securities company data, the market share of Vietnamese-made fashion in the US and Japan in 2022 will be 18.3% and 15.6%, up from 17.6% and 14.1% by 2021. In Korea, the market share accounts for 31.1%.
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Mr. Nishida Hideki, General Director of Uniqlo Vietnam. Photo provided by the company
Before the brand launched its first location in Ho Chi Minh City in 2019, Uniqlo produced its clothing in Vietnam. Accordingly, the parent company, Fast Retailing, Mr. Nishida Hideki, General Director of Uniqlo Vietnam has been ordering from Vietnamese suppliers for over 20 years. About 240,000 Vietnamese workers are directly and indirectly involved in this production process.
Vietnamese partners are considered highly capable. This Japanese firm manufactures many main items that call for sophisticated processes. For instance, the product line offers faux-sheep fleece jackets made entirely of recycled PET plastic bottles, ultra-light down puffer jackets (ULD), and thermal apparel with exclusive technology (HEATTECH).
To deploy, Fast Retailing dispatched Takumi (the group's textile experts) to share knowledge and experience and ensure partners meet independent global standards for product quality and safety. Mr. Nishida reaffirmed his commitment to keep growing and raising the percentage of Vietnamese goods in the Vietnamese shop chain, but he did not provide any specifics regarding plans.
Despite the uncertain economic climate, Uniqlo added 7 more stores this year, for a total of 22. The latest is an independent store in a prime location overlooking Hoan Kiem Lake (Hanoi), created from an ancient building.
Mr. Nishida Hideki says business outcomes align with Fast Retailing's long-term development objective. According to the recent business results report for the fiscal year ending August 2023, Fast Retailing had a net profit of 296 billion yen (more than 1.9 billion USD), an increase of more than 8% over the same period thanks to record revenue of 2,770 billion yen (nearly 18.6 billion USD), an increase of 20%.
As for Uniqlo Korea, Southeast Asia, India and Australia, the overall results were announced, with revenue of nearly 450 billion yen (about 3 billion USD) and operating profit of more than 78 billion yen (over 518 million USD), growing by 46.1% and 36.4% respectively.
"Southeast Asia, especially Vietnam, is showing impressive growth potential. We are still optimistic about the prospects here," Mr. Nishida Hideki assessed.
This brand has about 1,000 employees operating the retail chain in Vietnam, of which 70% of store managers are Vietnamese. General Director Nishida aims to increase this rate in the coming time and wants each store to have one disabled employee to create an inclusive workplace and development opportunities for everyone.
As of the end of February, Mr. Nishida Hideki has become the second General Director of Uniqlo Vietnam, succeeding Osamu Ikezoe in the executive role. About 4 years ago, he made his first visit here. "It so happened that thousands of people lined up for days to visit the first store when it opened. That picture of Vietnam has always motivated me," the man remarked.
He aimed to make this fashion retailer the most prestigious brand during his tenure. He applies the 4C formula to implement this: customer service, confidence in LifeWear, contribution to society and challenge spirit).
"I think reliable friends always surround me. I appreciate my experience in Vietnam instead of feeling compelled to do otherwise," he remarked.
Uniqlo is the largest brand among eight of the Fast Retailing retail group, founded by Japan's richest billionaire, Tadashi Yanai. As of November 15, Fast Retailing had a capitalization of 11,749 billion yen (77.8 billion USD). The total number of stores of all brands under Fast Retailing currently reaches nearly 3,600 stores, of which Uniqlo has 2,400.
If calculated by the capitalization scale of global fashion retailers as of February this year, Fast Retailing ranked 2nd in the world after Inditex (Zara's parent company).
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