Next step towards Vietnam wool industry growth

A delegation from WoolProducers Australia attended Saigon Tex 2024 and launched their roadmap for early-stage wool processing in Vietnam, created as part of their government funded Agricultural Trade and Market Access Cooperation grant.

In the report created in the ATMAC project, WoolProducers explored options to diversify Australian wool export, with Vietnam earmarked as a potential key partner.

The roadmap suggests that a feasibility study would be key early step to decide upon the location for a facility, along with what products should be produced and what kind of wool would be required.

Going forward, it is believed that government support could facilitate establishing a pilot facility to help pave the way for other early-stage processing firms to relocate their operations into Vietnam.

It is expected that a one or two-year lead time would be required to secure the necessary permits and approvals for a facility located within an industrial park, ideally located near a spinning facility.

WoolProducers general manager, Adam Dawes said Australia was renowned for its high-quality wool, particularly Merino.

"Vietnamese textile manufacturers are increasingly recognising the value of incorporating wool into their products, with domestic wool spinning capacity expected to exceed 20,000 metric tonnes in the next 12 months," he said.

In addition to the ATMAC project, WoolProducers has partnered with Australian Industry Hub Vietnam, working with wool industry representative, Kelvin Le.

"AusHub has identified complementary supply chain partners for Australian wool market expansion," Mr Le said.

"Given Vietnam's exciting textile trade, predicted growth and rapid expansion in wool processing capacity there are significant benefits to both sides in relation to Australian wool."

Mr Dawes said the AusHub partnership holds promise for both sides, allowing to Australian wool producers gain access to a new and expanding market, while Vietnamese manufacturers could elevate their product offerings with premium wool.

"The roadmap sets out clear responsibilities for both industry and government on both sides to integrate wool as a core part of the Vietnamese textile sector," he said.

"Given the importance placed upon expanding trade to the Southeast Asia region we look forward to ongoing commitment from all parties to progress the recommendations of the roadmap and associated action plan."