Vietnamese textile companies are urging the government to approve the Development Strategy for Textile and Footwear by 2030 to make the industry self-sufficient in material production and compliant with rules of origin as stated in free trade agreements. Than Duc Viet, Director, Garment 10 Corp has expressed concerns over the tight raw material supply despite a projected rise in demand. Vietnam’s textile exports are expected to rise to $43.5 billion in 2022, according to Vietnam Textile and Apparel Association. However, Du Viet fears Chinese Zero-COVID policy and the Russian military operation in Ukraine will disrupt supply chains, hindering its ability to fulfill new orders. He says, China remains the leading material exporter to Vietnam, accounting for half of the supply. His corporation plans to diversify its suppliers in the next 5-10 years to be less dependent on China, but it has to seek support from its partners in the short term.

Nguyen Duc Thang, Director , Dap Cau Garment, attributes the disruption in company’s production to delayed shipments from Shanghai (China. His company plans to re-negotiate with its partners to put back delivery. Tran Nhu Tung, Chairman of Thanh Cong Textile Garment Investment Trading JSC., reveals, his company plans to substitute Chinese materials with Korean and Thai materials

Trinh Xuan Lam, Chairman, Tien Son Thanh Hoa JSC., says, his company’s attempts to diversify material sourcing has met with little success as materials form other countries is insufficient to fill the gap left by China.

According to the General Department of Customs, Vietnam textile exports rose by 23 per cent to $8.8 billion in Q1/2022, compared to the same period last year, representing the highest quarterly growth in 10 years.