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Self-sufficiency in raw materials: A strategic direction for the Vietnamese footwear and textile industry.

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In the context of the constantly fluctuating global economy, self-sufficiency in raw materials and accessories has become an urgent issue for the Vietnamese footwear and textile industry. This is not only a solution to minimize the risk of dependence on foreign supplies but also an important factor to increase product value, while enhancing competitiveness in the international market.

Current situation of dependence on foreign supplies

The Vietnamese footwear and textile industry has long contributed greatly to the country’s export turnover. However, most of the raw materials for production in this industry still have to be imported from abroad, especially from China. According to experts, more than 60% of raw materials in the Vietnamese footwear and textile industry are currently dependent on foreign supplies, which causes many difficulties and risks, especially in the context of global supply chain disruptions due to the COVID-19 pandemic and political conflicts.

Relying on imported raw materials not only reduces the initiative in production but also affects the ability to meet the requirements of product origin (origin requirements in free trade agreements). This means that Vietnamese enterprises find it difficult to take advantage of incentives from trade agreements such as CPTPP or EVFTA.

Challenges for the footwear and textile industry

In addition to the lack of domestic supply, enterprises in the footwear and textile industry also face many other challenges such as outdated production technology, high production costs, and difficulties in accessing capital to invest in developing supporting industries. The lack of synchronization in support policies from the state is also a major barrier to the process of self-sufficiency in raw materials.

Some experts point out that although Vietnam has the potential to develop supporting industries, it has not yet fully exploited this advantage. This is mainly due to the lack of connection between domestic and foreign enterprises, as well as the limitation in applying high technology in production.

Solutions to the problem of self-sufficiency in raw materials

To solve the problem of self-sufficiency in raw materials, many experts recommend a comprehensive strategy from both the state and enterprises. First, it is necessary to promote the construction of domestic raw material centers, ensure stable supply and minimize dependence on foreign markets. These centers need to be invested in a systematic manner in infrastructure, modern production technology, and ensure the connection between domestic enterprises.

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In addition, the development of specific support policies from the government is also a key factor. The government needs to introduce preferential policies on tax, credit, and land to encourage enterprises to invest in developing supporting industries. In addition, training high-quality human resources capable of applying modern technology to production is also an important priority.

The role of industry associations

In the process of self-sufficiency in raw materials, industry associations such as the Vietnam Leather and Footwear Association (LEFASO) and the Vietnam Textile and Apparel Association (VITAS) also play an important role. These associations can act as a bridge between businesses and the government, helping to propose appropriate policies and creating favorable conditions for the development of supporting industries.

In addition, associations can also play a role in promoting international cooperation, seeking strategic partners for technology transfer, as well as developing research and development (R&D) projects to improve domestic production capacity.

Increasing the application of technology and digital transformation

Technology and digital transformation are global development trends, and the Vietnamese footwear and textile industry is no exception. The application of 4.0 technology in production not only helps optimize the production process, reduce costs but also improve product quality, meeting the strict standards of the international market.

Enterprises need to focus on investing in automation technology, robotization, and artificial intelligence (AI) to increase autonomy in the production of raw materials. In addition, applying advanced production management systems also helps businesses improve labor productivity, reduce waste and ensure products meet high quality standards.

Towards sustainable development

Sustainable development is one of the increasingly urgent requirements in the footwear and textile industry. Enterprises need to focus on using environmentally friendly materials, minimizing negative impacts on the natural environment during the production process. At the same time, compliance with international standards on environmental protection also helps businesses enhance their reputation and competitiveness in the international market.

Developing green and environmentally friendly supply chains not only meets legal requirements but also opens up opportunities for businesses to access high-end markets such as the EU, Japan, and the United States, where consumers are increasingly concerned about product sustainability.

Self-sufficiency in raw materials is not only an urgent requirement for the Vietnamese footwear and textile industry, but also a decisive factor in the competitiveness and sustainable development of the industry. To achieve this goal, it is necessary for both the government and businesses to join hands in investing in supporting industries, applying modern technology, and promoting international cooperation. Only then can the Vietnamese footwear and textile industry stand firm against fluctuations in the global market and achieve sustainable development in the future.

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