Vietnamese Modernized AO DAI ClusterKhon Kaen, 4-8 July 2011Ohmmar and Vietnamese team (Mr. Binh, Ms. Giang, Ms. Xuyen)

Introduction• Ao Dai is the traditional costume

of Vietnamese people.• Our group members choose

Vietnamese Ao Dai fashion to sell in world market for the high class fashion.

• Create the cluster in Vietnam will utilise our basic technology, skilled labor force, creating employment opportunities.

Executive Summary• Clusters: geographical concentration of

enterprises which produce and sell a range of related or complementary products.

• Fashion-Ao Dai Cluster development is mainly require supporting and strengthening the clusters by creating networking among the stakeholders.

• Ao Dai SME Clusters in Vietnam have huge potential and critical to SME growth and requires several initiatives.

The Target Cluster

High Fashion

Vietnamese Modernized

“AO DAI“

Description of Potential Members History, Population, Employment, Aggregated sales, Export potentials, Value added, Raw materials endowments, Labor supply, Transport and logistics, Other related industries, Institutional structures & relations

Cluster’s product

Ha Dong map

Ha Dong’s History

Thousand year history with many traditional business villages: brick, textile. The most famous product was SILK (Van Phuc Village)

Now, Ha Dong District has the fastest growth rate in comparison with other districts in Hanoi.

The population of Ha Dong is about 200.000 people which have been concerned as a potential labor force for Hanoi.

Not only in Ha Dong but also in center Hanoi nowadays are selling a lot of products are made from silk such as scarf, tie, dress, shirt and certainly, Ao Dai.

Ha Dong’s Population

785 families working in textile silk in Van Phuc Village (about 65% of total)

2.5 to 3.0 million square meters silk are produced annually

Total revenue each year can reach 27 billion VND

Employment & Total sales

Export potentials

Korea Japan China India EU America

Value added

Silk production improve

Modernized Ao Dai design industry

Tourism Country image Skilled labor force

Raw materials endowments

Ha Dong silk Trach Xa’s skilled

labor force Famous Ao Dai

designers Wellknown

Vietnamese Ao Dai brand-name and image

Labour supply

Ha Dong skilled labor force Well known designers/ artists: Si Hoang,

Minh Hanh Ao Dai manufacturing companies

Transport and logistics From the old design a dress only in a

village or a small area transportation was primitive dress, such as porters, bicycle, motorcycle, trains and automobiles. Today the production of dress usually only in villages, a clothing store or a fashion design company small or medium, the carrier may be car, train or plane (for export exported abroad)

Other related industries with the production of the dress shirt

industry itself, her third coat, dress uniforms for pupils, students, flight attendant, waitress, tourist guides, teachers, Austria innovation from the wedding dress, silk, were out

Institutional structures and relations Ao Dai is the traditional costume of

Vietnam, it represents the charm, elegant and bringing Vietnamese love & gentle to the world

Client Products and Services

Main ClientTechnical training center for SMEs workers

Training to design other clothes uniform for: school, flight attendants, receptionists, restaurant staff, hotel workers or wedding dress

Marketing via for EC

Finding source to EC for all of textile industry

Common showroom

Marketing for all common textile

Export facilitator Find big exporter for common textileBuying office Build and find buying center of textile on the

world , expand to many countries. Warehouse Build and expand land for warehouse near

location productionTransport system Buy mean to transport in during create and

complete a productionTraining for designer

Training designers for other clothes

Fashion model training center

Model training for professional performance

The Cluster Diagram

Description

1. Cluster Analysis2. Investment

Support Analysis3. Institutional

Development

Previous Cluster or EC Initiatives

Trach Xa trade village: 200 families

Ao Dai Association: established July

2009, lead by fomer

chairwoman of Forreign Affair Department of National Essembly

7. The Diagnostiques Survey SWOT Wrong awareness about AO DAI

23

Strength

•New style of modernized Ao Dai•Available manufacturers•Skilled labor force•Good designers•Favorable location

Weakness

•Costly input material•Expensive input expenses •Lack of business & cluster management skills•Poor marketing•Limit of capital

Opportunity:

•Well-known Ao Dai brand-name & image •Increasing numbers of consumers•Government & professional association supports

Thread

•Similar product competition•More substitution material•High cost for input material•Wrong awareness about Ao Dai

SWOT ANALYSIS

Potential stakeholders

Marketing Financing Training Investment and trade promotion Professional associations Quality control agency Government Big exporters Event organization and management

Financing: Loans From state-banks with low interest From donors though ODA loans• Infrastructure: construct roads, water and

electricity lines• Tax incentives• Biz matching

Government

Raising labor skillTraining designersTraining models

Training Institutes

Marketing agencies

Advertising agencies: Creating showrooms, fashion shows (on TV or on the Internet)Event organizations:

Potential Stakeholders

Others

Big ExportersQuality control agenciesPackaging companiesTransportation companies

Potential Stakeholders

Cluster design -Who will be in the Cluster Foreign and domestic

designers. Silk, dye, textile

producers Accessory makers/

importers Wholesalers for textile

and accessory Quality control agency Big exporters

Marketing and advertising agencies

Model agencies Event management

agencies Training institutions Investment and trade

promotion organizations

Professional associations

Incentives (Binh)

Land incentives Tax incentives Loans with grace period Lower interest rates Training

Technical Assistance Needed (Binh)

Study tour Matching services skills training, capacity development, utilities, modernized facilities

Financial Assistance Needed (Binh)

Loans with lower interest rate

Investment incentives

Tax incentives

Having conversations with local authorities

Looking for sponsors Constructing factories

and building storages. Recruiting and training

workers, creating showrooms and fashion shows and ready to export

Proposed interventions

Government supports Financing (banks with low interest rates) Infrastructure Grace period for land Tax incentives Business matching and investment Technology transfer Policies Marketing & Promotion

Potential Sponsors

Government Professional

associations International

programs and sponsors

Big companies

Entertainment companies

• JICA• ADB• World bank• UNDP

International organizations

NEM

IVY

Seven AM

Famous fashion brands in Vietnam

Sy HoangMinh HanhThien Van Tailor CompanyPhu HienTrach Xa Ao Dai Trade Village’s artisans

Famous fashion Designers in Vietnam

 Conclusions and RecommendationsAo Dai is the un-touch area of

world fashion market.There are many potential in the

market. Improve feasibility survey and

develop plan in detailPersuade Government with the

detail strategic plan