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

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in September of 2024, a 8.0% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of August 2024. Exports went down 9.8 %, to USD 34.08 billion and imports decreased 5.9%, to USD 31.76 billion in terms of month-on-month basis. As a result, there was a USD 2.32 billion surplus in Vietnam’s trade balance in this month.

Latest News

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.

More News

From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Enterprises urged to tap potential to expand exports to EU via official channels

Enterprises urged to tap potential to expand exports to EU via official channels

The Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) on November 18 organised a seminar on promote trade in the European market, focusing on potential for expanding exports to the European market via official channels.
Read More

Your care

Latest Most read
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
Mobile Version