Vietnam To Launch Raw Materials Centre For Textiles And Footwear In 2025

HANOI, Sept 5 (Bernama-VNA) -- Vietnam’s Ministry of Industry and Trade discussed a proposal on Thursday to develop a centre for creating, storing, and trading raw materials for textile and leather footwear production.

Deputy Minister of Trade Phan Thị Thang stated that the centre is expected to launch in 2025, according to the Vietnam News Agency (VNA).

The meeting highlighted the need for Vietnam to gain control over the source of materials for textile and leather footwear production, rather than relying solely on imports from other countries.

Textiles and leather footwear have long been among Vietnam’s major exports, with export turnover increasing by an average of 10 per cent per year, according to Deputy Director of Industry Phạm Tuan Anh.

In the last six months, the combined export turnover of the two sectors reached nearly US$30 billion, accounting for 16 per cent  of the country’s total exports and creating nearly five million jobs, which represent 22 per cent  of industrial employment nationwide.

Vietnamese manufacturers still rely on importing raw materials—cotton, wool, silk, linen, synthetic materials, and leather—as well as accessories from China, South Korea, and other ASEAN countries.

This dependence on imported materials could hinder the industry’s growth, as several countries are implementing stricter regulations to control supply quality in order to meet the global net-zero target by 2050.

A proposal to develop a centre for creating, storing, and trading raw materials for the textile and leather industry was submitted to the trade ministry last year by the Vietnam Leather, Footwear and Handbag Association and the Vietnam Textile and Apparel Association.

It is expected that the centre will be developed with funds mobilised from the private sector. Once built, the centre will welcome both domestic and foreign suppliers to display and introduce their materials.

The centre will assist businesses in tracing the origins of materials, ensuring that all trades operate with high standards and transparency.

The materials’ quality will also be assessed regularly. An information platform will also be developed to keep domestic businesses up-to-date with the latest production technology and fashion trends.

Some field trips are expected to take place next month, where Vietnamese businesses will have the opportunity to learn from businesses in China and some other countries that have succeeded in operating similar models.

Deputy Trade Minister Phan Thị Thang said: “The centre should have been developed a long time ago, but for various reasons, we have not been able to proceed. We need to set the plans in motion as soon as possible so that the centre can be launched in 2025.”

--BERNAMA-VNA