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Vietnam's textile, apparel, and footwear companies are increasingly looking to the domestic market as a safety net and a strategic growth avenue as a result of the uncertainties surrounding global trade.

Experts concluded that even with great potential, more creativity and competitiveness are needed to establish a solid foothold at home.

According to the Ministry of Industry and Trade, Vietnam's domestic market is supported by a youthful population, growing incomes, and an increase in consumer demand for style, quality, and brand awareness.

Vietnamese fashion, according to customers like Phung Mai Hanh, a resident of Ho Chi Minh City, is offering a variety of eye-catching designs and products while also keeping up with regional trends.

The general director of Viet Thang Jean Co., Pham Van Viet, stated that the company turned its attention to domestic distribution after fulfilling global sustainability standards in markets such as the US, Japan, and the EU. E-commerce has increased by 30–40% in recent years, and this decision has resulted in 15–20% annual growth.

"Positive consumer feedback gives us the confidence to keep growing at home," he said, as reported by Vietnam Plus.

According to Phan Thi Thanh Xuan, the vice chairwoman and general secretary of the Vietnam Leather, Footwear and Handbag Association, Vietnamese companies currently control about 40% of the market share in the footwear industry, primarily in the mid-range segment.

As international trade slows, the domestic market provides a crucial buffer, with businesses aggressively growing their online distribution and brand awareness.

But there is a lot of competition. Vietnam is home to about 200 global fashion brands that benefit from substantial cost and marketing advantages.

Local businesses, on the other hand, must deal with high production and marketing costs, which can reach 30% of product prices. It is challenging for many companies to maintain long-term domestic growth because they lack the funds to invest in branding, market research, and product design.

Viet noted that Vietnamese businesses frequently export a small number of product lines and that it is expensive to reinvest in order to enter the domestic market. Many businesses fail within the first two years, and it can take up to five years to recover costs.

The market is also overrun with low-quality and counterfeit imports, and local producers are disadvantaged because imported raw materials are taxed at a rate of 5–10% while fully assembled imports are tax-free.

With few local material suppliers and little industry coordination, the domestic fashion supply chain's fragmentation further reduces competitiveness.

Experts advised businesses to improve their design and production skills, prioritize sustainability, and implement eco-friendly procedures like utilizing natural and recycled fibers. Businesses hope Vietnamese consumers will increasingly recognize the value of many domestic products that now meet EU, US, and Japanese standards.

To get rid of subpar products and increase consumer confidence, Xuan advocated for stronger quality standards and assistance with brand development.

The Deputy Director of the Domestic Market Department, Phan Van Chinh, emphasized the importance of considering the local market as a major source of growth rather than merely a backup.

In order to help SMEs fight counterfeit goods and broaden their customer base, the Ministry of Industry and Trade is promoting legislation to localize supply chains and creating an online marketplace.

Experts counseled Vietnamese businesses to maintain their export strengths while matching consumer expectations for brand identity and product quality in order to transform the domestic market into a real growth engine. By doing this, the domestic market will develop into a strong base for the industry's long-term growth.