* **Vietnam’s Textile, Leather, and Footwear Industry: A Sustainable Leap Forward?

* Việt Nam is discussing the establishment of a centre for raw materials to support the textile, leather and footwear industries. * This centre would be a significant step towards enhancing sustainability and climbing higher up the global value chain. * The initiative is expected to boost the country’s textile, leather and footwear industries, contributing to economic growth.

Lefaso is a leading Vietnamese leather footwear manufacturer and exporter. “The recovery is driven by several factors, including a rebound in consumer spending, increased demand for leather goods, and a shift in consumer preferences towards higher-quality products,” Xuân said. The leather footwear industry is expected to continue its recovery in the 2024-2025 period, with a projected growth rate of 5-10% annually.

This surge in imports is attributed to the country’s booming garment and footwear sector, which has seen significant growth in recent years. The garment and footwear industry in Việt Nam is a major contributor to the country’s economy, accounting for around 10% of its GDP. It is a vital sector for employment, generating millions of jobs across the country.

This shift in perspective has led to a significant change in the global supply chain. The shift from voluntary to mandatory sustainability policies has resulted in a complex and challenging landscape for businesses operating in these regions. The shift from voluntary to mandatory sustainability policies has led to a number of challenges for businesses.

Gerwin Leppink from the Worldwide Responsible Accredited Production (WRAP) programme noted that expanding export to markets like the US and EU required compliance with regulations, particularly those focused on sustainability, which are impacting both importers and producers. Việt Nam’s leather and footwear industry is identified as a key export sector, with a goal of reaching an export value of $38-40 billion by 2030, according to the industry’s development strategy approved in late 2022. The strategy also aims to develop the industry sustainably following the circular economy model by 2035, improving the domestic value chain, and integrating further into the global value chain.

However, the global trend toward greening industries is putting pressure on leather and footwear production, which is still regarded as a polluting sector, according to Lefaso’s President Nguyễn Đức Thuấn. For Việt Nam, which accounts for 7.3 per cent of the global market, second only to China, this presents both significant opportunities and challenges. “The application of automation, artificial intelligence, and green transition is essential for companies that want to stay competitive and climb higher in the global value chain,” Thuấn said. How to ensure success The proposal to establish a raw materials centre for the garment and footwear industries was a hot topic at a recent meeting of MoIT.

The Vietnamese government has been exploring ways to boost the country’s textile and apparel industry, aiming to increase its share of the global market. The government has identified several key areas for development, including:

* **Promoting innovation and technology:** The government is encouraging the adoption of new technologies and processes in the industry, such as digital printing, 3D printing, and smart textiles. These technologies can improve efficiency, reduce waste, and create new product designs.

Phạm Tuấn Anh, deputy director of the Industry Department at MoIT, said the ministry was working with industry associations to finalise plans for the centre, learning from the experiences of other countries to ensure success. “We should have built suchlike centre long ago, but for various reasons, it hasn’t happened. We need to act immediately so that the centre can be operational by 2025,” Deputy Minister of Industry and Trade Phan Thị Thắng said. The centre would not only support the domestic industry but also help Việt Nam reduce its dependence on imported materials, ensuring compliance with stricter environmental regulations, she added.

The centre marks a bold step towards sustainability and enhancing the competitiveness of Việt Nam’s leather and footwear industry. It is expected to be funded by the private sector and will serve as a hub for both domestic and foreign suppliers, ensuring traceability, quality, and the latest developments in the fashion industry. VNS