14:20 | 18/11/2015 Trade
(VEN) - The free trade agreements (FTAs) that Vietnam has signed with Japan, the Republic of Korea and the Eurasian Economic Union and the involvement in the Trans Pacific Partnership (TPP) Agreement are offering ample opportunities for wool exporters. Seeing the potential, Australia has rapidly promoted a full range of activities to boost international-standard wool material exports to Vietnam.
Vietnamese textiles and garments accounted for 17 percent of global textile and garment export revenues in 2014
The Woolmark Company (TWC) recently launched wool material exhibitions in Hanoi and Ho Chi Minh City showing Australian wool materials which meet the need for making woolen fashion in Vietnam.
TWC Director for Emerging Markets Rajesh Bahl said the exhibitions were to encourage retailers and international brand names to pay attention to Vietnamese woolen products made from imported Australian fleece.
The Vietnamese textile and garment sector grew steadily in 2014, accouting for US$24.5 billion or 17 percent of global textile and garment export revenues, following only China. Seeing this potential, TWC launched a Vietnam on the Integration Path project in 2012 to develop a new supply chain for Australian fleece wool products. TWC has established ties with more than 80 partners in Vietnam, mostly in the knitting and garment sectors, said Rajesh Bahl.
He also said that before 2012 many Vietnamese producers had not heard about real woolen products. However, three years later, they have made significant progress by being able to make woolen products which meet international export standards.
According to Rajesh Bahl, they will try to promote wool exports to Vietnam and help build a complete woolen production and export chain using Australian materials.
The Hanoi Knitwear Co. Ltd.’s Sales Department Director Nguyen Tien Phu said that his company currently imports woolen materials from Australia which meet international standards, a move that has helped facilitate the company’s exports. He also said that many clients have appointed their own material suppliers, while several other partners have allowed the company to choose material suppliers upon their demand.
Hanoi Knitting Joint Stock Company’s Foreign Trade Department Director Nguyen Thi Thanh Cuc said that the company mostly exports knitted socks to Japan which has set strict requirements in terms of material. Because domestic materials do not meet their requirements, the company has to import materials.
With Australia’s advantages in terms of material quality, training support and desire to seek a market in Vietnam, cooperation between Australian and Vietnamese businesses in wool supply is expected to contribute to creating a close link in the Vietnamese wool sector and increasing Vietnam’s position in the global textile and garment map.
Nguyen Phuong & Viet Nga