Diversifying Raw Material Imports for Sustainable Growth
In the face of global economic and trade volatility, Việt Nam is making a concerted effort to diversify its sources of imported raw materials. This strategy is essential for ensuring more balanced and sustainable import-export growth across various industries. One of the most prominent examples of this challenge is the plastics sector, a fast-growing industry that remains a technical processing hub. According to the Ministry of Industry and Trade’s Industry Agency, a staggering 70% of the industry’s input materials are imported, as domestic suppliers can only meet about one-third of the total demand. This heavy reliance, coupled with shortages of recycled plastic particles and an underdeveloped supporting industry, forces enterprises to maintain large inventories to avoid costly production disruptions.
Tackling Challenges in Chemical and Manufacturing Sectors
The chemical industry faces similar hurdles, particularly concerning its reliance on imported industrial salt. Domestic salt production struggles to meet the high standards required for industrial use, which demands a minimum of 98% sodium chloride purity with minimal impurities. Việt Nam’s traditional manual salt production, with its low yield and inconsistent quality, simply cannot compete with the refined, imported salt that is vital for producing key chemicals like caustic soda. The manufacturing sector as a whole is grappling with similar bottlenecks in raw material supply. Nguyễn Thị Thanh Xuân, Vice Chairwoman and General Secretary of the Việt Nam Leather, Footwear, and Handbag Association, emphasizes that input supply remains the biggest constraint. Many companies are unable to source materials domestically, instead relying on imports or supply sources designated by their foreign clients, which limits their autonomy and growth potential.
Government and Industry Collaboration for Solutions
To address these widespread issues, industry leaders and the government are collaborating on a series of solutions. The associations for the leather-footwear, textile-garment, and wood-forestry industries have jointly proposed the establishment of a multifunctional center. This hub would serve as a critical resource for research and development, innovation, and raw material trading for the entire fashion sector. An initial 40-hectare site has been identified, but the success of the project will depend on strong governmental support and forward-thinking policies. In response, the Minister of Industry and Trade has tasked several agencies with drafting a comprehensive scheme to diversify raw material sources. This initiative is a high priority, and officials are actively gathering feedback from industry leaders to develop practical, cross-sectoral solutions that will help Vietnam reduce its import dependency and achieve more sustainable economic growth.
