Vinatex-Kova flame-resistant fabric produced by Vinatex in collaboration with the Coats Group -photo: Vinatex

Products made from flame-resistant fabric are not commercial items sold in global supermarket chains; instead, they must strictly comply with evaluation standards and regulations in the importing country. “Such products have the potential for rapid growth but will depend heavily on the policies of specific countries. They are special products, not entirely like those we have made in recent years,” Truong said.

Vinatex is rapidly producing flame-resistant fabric and plans to export the first shipments of this product to Indonesia, India, the Middle East, and the US in the third and early fourth quarters of 2024, expecting to earn the revenue of US$2-2.5 million this year. In the first five years, Vinatex is expected to double the production of this product annually to meet the demand of the US, a very important market for the global textile and garment industry. Progress in the US market will pave the way for easier entry into the EU, Japan, the Republic of Korea, and other markets worldwide.

Compared to other conventional products, the growth potential for flame-resistant fabric is clearly greater and this product faces less competition than conventional ones, Truong said.

He added that according to foreign partners, the potential for flame-resistant fabric remains huge. Meanwhile, Vietnam, a world’s top-five textile and garment exporter, has not had facilities to produce materials for flame-resistant fabric production.

The cost of flame-resistant fabric is 3-5 times that of conventional one, so products made from this fabric have a high value.

“This is the first time Vietnam’s textile and garment industry has engaged with a product that requires copyright. This copyright is registered in the countries where it is used and has legal implications. Therefore, Vinatex initially has to approach it through large global corporations that own the technology copyrights and have registered intellectual property for these types of products,” Truong said.

Developing niche markets has been recommended by experts to the textile and garment industry for many years. However, niche market development has often been implemented by exploring new markets, beyond the major export markets of the industry, such as the US, the EU, and Japan.

Entering niche markets with special and potential products like flame-resistant fabric is a significant challenge. This is because these products require substantial investment in technology, along with a strategy and determination to pursue them, as well as a capable workforce. Despite these challenges, this is a sustainable development direction with good revenue potential.

Looking at denim fabric products, developed by Phong Phu Corporation in collaboration with Advance Denim since 2019, it is evident that Phong Phu is now one of the leading denim producers in Vietnam. In addition to the classic 100-percent cotton products, Phong Phu has developed hundreds of new jeans models, incorporating cotton, Tencel, Spandex, and Viscose fibers to meet the fashion needs of the market.

Although developing a market segment for special products is difficult, without determination and direction, textile and garment enterprises will not be able to make breakthrough and find a safe path in a market context filled with uncertainties and risks. Clearly, this remains a game for capable businesses with sufficient financial and human resources.