The development of a raw materials centre for textile and leather footwear production in Vietnam is expected to help the industries to reduce reliance on imported inputs to boost their competitiveness.

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Currently, domestic supply meets only 40-50% of the raw material demand for these key export sectors, with a significant portion sourced from China.

Reliance on imported materials poses challenges for Vietnamese enterprises in meeting stringent origin requirements under free trade agreements and adapting to fluctuating global trade.

Vietnam is a major player, ranking third globally in footwear production and second in exports. The footwear sector aims for 29 billion USD in exports in 2025 and 38-40 billion USD by 2030, necessitating increased localisation and adherence to sustainable production standards.

Similarly, the textile and garment industry targets 47-48 billion USD in exports in 2025, expanding its reach to 132 markets.

Experts and industry associations, including the Vietnam Leather, Footwear and Handbag Association (LEFASO) and the Vietnam Textile and Apparel Association (VITAS), stated that enhancing product value through investments in machinery, human resources, and particularly, domestic raw material supply is crucial for sustainable growth.

Nguyen Duc Thuan, Chairman of LEFASO, emphasised the need to promote the development of the raw material supply market towards scale, standardisation and transparency, especially, the early establishment of a raw materials centre for the fashion industry.

The centre is expected to enhance the competitiveness of Vietnam's fashion industry, including footwear, textiles-garment and others related sectors such as design.

A complex project on Vietnam fashion industry innovation and raw materials centre for fashion industry was unveiled at 25th Vietnam International Footwear and Leather Product Exhibition held in Ho Chi Minh City from July 9 to 11.

The project covers 40 hectares, the project is located in Dong Hoa ward, HCM City (former Binh Duong province's Di An city). Covering 40,000 squ.m, the centre aims to establish a comprehensive supply chain, R&D hub, exhibition space, and training facility.

Expected to be operational by early 2027, the centre is envisioned as a critical solution to the long-standing bottleneck in the textile, garment and footwear industries, according to LEFASO.

Industry leaders believe the centre will enhance the competitiveness of Vietnam's fashion industry as a whole, facilitating quicker production cycles and fostering a sustainable, and innovative value chain.

Despite global uncertainties and new reciprocal tax policies from the US, both sectors showed positive growth in the first six months of 2025, with textile and garment exports up 12.3% to 18.669 billion USD and footwear exports rising 10.1% to 11.889 billion USD.

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