Developing a raw material trading center to address bottlenecks in the textile and footwear industry

VCN - "We cannot continue to rely solely on processing; we need to take control of raw materials and all stages of product design," emphasized Deputy Minister of Industry and Trade Phan Thi Thang at the Trade Promotion Conference with Vietnam's overseas trade offices in August 2024.
Tax refund applied for imported raw material serving for export production Tax refund applied for imported raw material serving for export production
Centre of raw materials for textiles and footwear expected to be launched in 2025 Centre of raw materials for textiles and footwear expected to be launched in 2025
Developing a raw material trading center to address bottlenecks in the textile and footwear industry
Conference scene

According to Thang, Vietnam's textile and footwear industries have established a strong presence on the global stage. However, these sectors are now facing competition from various countries and challenges such as the growing trend toward green consumption and new regulations from several import markets. "We cannot continue to rely solely on processing; we need to take control of raw materials and all stages of product design," she reiterated.

Pham Tuan Anh, Deputy Director of the Department of Industry (MoIT), mentioned that in December 2023, the Vietnam Leather, Footwear, and Handbag Association and the Vietnam Textile and Apparel Association submitted a proposal to the MoIT seeking approval to establish a raw material trading center for Vietnam's fashion industry.

According to the Department of Industry's leadership, textiles and footwear are two of Vietnam's major export industries, with an average growth rate of over 10% per year. According to reports by the World Trade Organization and World Footwear Magazine, Vietnam is the world's second-largest exporter of footwear and the third-largest exporter of textiles.

Despite these achievements, Vietnam's textile and footwear sectors still primarily focus on processing, leading to low added value, and domestic companies contribute minimally. Most raw materials and accessories are imported from China, South Korea, and ASEAN countries.

According to the General Department of Customs, the import of raw materials for the textile and footwear sectors reached US$13.42 billion in the first six months of 2024, a 14.11% increase compared to the same period in 2023.

Dependence on imported raw materials could pose significant challenges for the sector's overall development, especially as major markets such as the U.S. and EU move toward Net Zero targets and impose stringent regulations on supply chain control, requiring products to meet high in-region origin standards.

The Department of Industry believed the establishment of the raw material trading center aligned with the government's strategy for developing the textile and footwear industries, as outlined in Decision No. 1643/QD-TTg dated December 29, 2022, and Resolution No. 115/NQ-CP dated August 6, 2020, which focus on promoting the development of supporting industries.

The center is expected to be funded through socialized capital and will gather both domestic and international raw material suppliers for the textile and footwear sectors. It will assist companies in tracing the origins of materials, facilitate business matchmaking, and showcase raw materials, technologies, and products in the textile and footwear industries. Additionally, the center will update businesses on trends and technologies in raw material production to support and promote domestic raw material production.

Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear, and Handbag Association, remarked that the center would serve as a hub for the leather and footwear industries, helping businesses introduce and connect new products, test product quality, and meet market demands. It will also shorten the time needed for companies to source raw materials, thereby promoting the development of domestic raw material production.

Xuan proposed the need for favorable policies, streamlined procedures, and convenient transportation to ensure the center operates efficiently and fully supports the industry’s development.

Providing further details, Pham Tuan Anh mentioned that the Department of Industry has been working with the two associations to finalize the center's proposal, addressing key details such as its name, location, scale, structure, funding, and impact assessments. In October, the associations plan to send a delegation to China and other countries to learn from their experience in establishing similar centers, aiming to ensure the project is both practical and effective in the future.

By Ngoc Linh/ Ha Thanh

Related News

“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

Terminate Pilot Project on Importing Medicinal Herbs across Chi Ma Border Gate

VCN - On October 30, 2024, the Government issued Resolution No. 210/NQ-CP on terminating the Pilot Project on Importing Medicinal Herbs under Resolution No. 111/NQ-CP dated September 23, 2021 of the Government on implementing the Pilot Project on Importing Medicinal Herbs across Chi Ma Bilateral Border Gate (Lang Son).
Increasing opportunities for exporting agricultural products to China by rail

Increasing opportunities for exporting agricultural products to China by rail

VCN - China is the largest export market for Vietnamese agricultural products and fruits. With increasing demand, exporting agricultural products by rail to this billion-people market is a potential and promising direction.

Latest News

Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
Truly comprehensive finance: supporting micro and small enterprises

Truly comprehensive finance: supporting micro and small enterprises

VCN - To effectively support micro and small enterprises, Dr. Nguyen Duc Kien (pictured), former Deputy Chairman of the National Assembly's Economic Committee, former Head of the Prime Minister's Advisory Group, and Chairman of the Scientific Council of the Institute for Digital Economic Development Strategy (IDS), suggests that specific and specialized solutions and policies are needed to enhance these businesses' access to capital and technology.
Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.

More News

Ensuring fairness between domestically produced goods and imported goods

Ensuring fairness between domestically produced goods and imported goods

VCN - Mr. Chu Thang Trung, Deputy Director of the Trade Remedies Authority, Ministry of Industry and Trade, shared about the application of trade remedies measures to protect domestic production and some solutions in the coming time.
Domestic exporters urged to shield against trade remedy threats

Domestic exporters urged to shield against trade remedy threats

Vietnamese exporters are navigating a landscape filled with both promise and peril, and experts urge them to bolster their defence against trade remedy investigations while capitalising on surging global demand.
Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Enterprises urged to further innovation, improve competitiveness to boost exports to Asia

Vietnamese enterprises need to make efforts to innovate, proactively improve competitiveness, and participate in new supply chains to boost exports to Asia, said trade official.
Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports top 1 billion USD again after 2 years

Monthly aquatic exports have exceeded 1 billion USD again in October after more than two years, signaling a rosy future for the industry, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Read More

Your care

Latest Most read
Processing-manufacturing accounts for over 64% of new FDI

Processing-manufacturing accounts for over 64% of new FDI

The processing and manufacturing sector took the lead in attracting foreign direct investment (FDI), accounting for 64.2% of the 27.26 billion USD recorded as of October 31, according to the General Statistics Office.
Foreign investment disbursement hits 19.58 bln USD in 10 months

Foreign investment disbursement hits 19.58 bln USD in 10 months

Disbursement of foreign investment reached about 19.58 billion USD in the first 10 months of this year, up nine% year-on-year, a report from the Ministry of Planning and Investment's Foreign Investment Agency (FIA) has shown.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Truly comprehensive finance: supporting micro and small enterprises

Truly comprehensive finance: supporting micro and small enterprises

VCN - To effectively support micro and small enterprises, Dr. Nguyen Duc Kien (pictured), former Deputy Chairman of the National Assembly's Economic Committee, former Head of the Prime Minister's Advisory Group, and Chairman of the Scientific Council of t
Challenges in reviving stalled projects

Challenges in reviving stalled projects

VCN - Recently, some "frozen" real estate projects have shown signs of restarting. However, successfully reviving these projects is no simple task for businesses (DN) due to the numerous difficulties and challenges they face.
Mobile Version