PEAK wool grower body WoolProducers Australia has established a strategic partnership with AusHub Vietnam to explore early stage processing options in the country.
The Australian Industry Hub (AusHub) is an initiative between the Australian Chamber of Commerce Vietnam (AusCham) and the Department of Foreign Affairs and Trade to facilitate access to markets in Vietnam for Australian industry groups in food fibre and forestry.
After a competitive application process, AusHub Vietnam has allocated funding for an in-country wool industry representative to work with WoolProducers Australia for a 12-month period.
WoolProducers chief executive officer Jo Hall said interest has been shown in investigating early stage wool processing in Vietnam.
“Which is pleasing given that Vietnam was one of four target countries identified for market expansion in the Deloitte Acess Economics report — ‘Ensuring a sustainable future for Australia’s wool supply chain’ – released in November 2022.
“WoolProducers is pleased to secure this resource on behalf of all Australian wool growers.”
She said WoolProducers intend to use the AusHub wool industry representative to build on the recommendations and opportunities identified in the Deloitte report.
WPA said the dedicated wool representative will assist with the identification of pathways to expand trade opportunities for Australian wool to Vietnam.
WPA said Vietnam has strong economic growth prospects with a forecast 7 percent growth in gross domestic product in the coming year. Complementing the growing textile sector within Vietnam, imports of carded/combed wool have been growing in recent years. More recently, a major global wool spinning operation has established a facility in Vietnam, WPA said.
Ms Hall said the DAE report identified Vietnam as a country worthy of further assessment for the establishment of early-stage wool processing as an avenue for market expansion.
“This, combined with the outlook for economic growth in Vietnam, particularly within their textile sector, presents an ideal opportunity for both countries.
“While market development activities have taken place in Vietnam in the past, the partnership with AusHub is seeking to identify strategic opportunities for new and vastly expanded early and intermediate-stage wool processing,” she said.
“It is our intention that the AusHub wool industry representative will work closely with current Australian Wool Innovation market development activities in Vietnam.
“WoolProducers are proud to have shown leadership in this space and appreciate the opportunity presented by the AusCham and DFAT through the AusHub industry representatives,” Ms Hall said.
WoolProducers Australia is one of three successful industry groups that will be supported by a dedicated industry representative in Vietnam through the AusHub program. 2023 is the 50th Anniversary of Australian and Vietnamese diplomatic relations. The slogan for the year is ‘People, Partnership, Prosperity’.
Source – WoolProducers Australia.