Australia and Vietnam strengthen ties with wool

Australian woolgrowers are expected to gain “huge” partnership access to Vietnam in a move that would facilitate an increased export supply of quality wool. This was the finding after a delegation from WoolProducers Australia visited Ho Chi Minh City in April to launch the industry’s new roadmap for early stage wool processing in Vietnam. It marked a significant milestone in the economic collaboration between the two countries, especially for the textile industry. WPA industry representative Kelvin Le said given Vietnam’s “exciting” textile trade and predicted growth, the Southeast Asian country had been identified as a market with “huge potential”. The Agricultural Trade and Market Access Co-operation project found most early stage wool processing (more than 95 per cent) was currently limited to China, India, Italy and the Czech Republic, posing much risk to the sustainability of the Australian wool industry. The project identified Vietnam as an emerging hub for textile production and was considered a potential key partner for trade diversification for Australian wool. Australia has been considering strategic options to diversify its wool exports that are currently concentrated in only greasy (unprocessed) wool and to a limited number of markets. Mr Le, who is a member of the Australian Industry Hub Vietnam (AusHub) that establishes funding from the Australian Department of Foreign Affairs and Trade, hopes to promote market research and market entry into Vietnam. He said the ATMAC project was intended to identify complementary supply chain partners for Australian wool market expansion. “It presents a comprehensive roadmap to increase the trade of raw and early stage processed wool between Australia and Vietnam,” Mr Le said. The project found that downstream supply chain partners, including spinners, knitters, weavers and garment manufacturers, also wanted to expand their supply chains to mitigate their procurement risks. To expand Vietnam’s role in global wool supply chains, a pathway was defined with short, medium, and long-term goals, from developing the first at-scale processing facility to scaling production to build a thriving industrial presence. WoolProducers chief executive Jo Hall said Vietnamese textile manufacturers were increasingly recognising the value of incorporating wool into their products — driven by consumer demand for premium natural fibres. “Australia is renowned for its high-quality wool, particularly Merino wool, known for its softness, breathability and temperature regulation,” she said. The WPA delegation met Vietnamese industry experts and leaders at the Saigon Textile and Garment Industry Expo — ‘SaigonTex’ — held from April 10 to 13. Ms Hall said with Vietnam’s textile trade predicted to grow by 4 per cent year-on-year, along with longer-running economic trends of manufacturing shifting to Southeast Asia, both Vietnam and Australia were in a privileged position for partnership. “This strategic partnership holds promise for Australian wool producers to gain access to a new and expanding market,” she said.