WOOLPRODUCERS Australia has repeated its call for funding for a wool trade policy office after a recent tour to explore and highlight industry innovation and developments in Vietnam.

The policy office was a recommendation of the ‘Ensuring a sustainable future for Australia’s wool supply chain – Industry Action Plan’ report commissioned by WoolProducers.

WoolProducers chief executive officer Jo Hall said the establishment of a wool trade policy office would deliver trade risk mitigation to Australian wool growers, increase pre-export value capture, create jobs and increase gross domestic product.

“Prices, seasonal conditions and a volatile policy environment are placing extreme pressure on Australian wool growers, I sincerely hope that the government does not overlook this opportunity to support the future prosperity of our industry and strengthen the Australian economy,” Ms Hall said.

A wool industry group, including representatives from WoolProducers Australia, Michell Wool, Eqwools, Fox & Lillie Rural and WoolWorks NZ visited Vietnam recently to increase awareness of opportunities for wool in the Vietnamese textile sector, particularly those aligned with the roadmap for early stage wool processing in Vietnam.

The tour included a visit to the Nam Dinh Silk Company that specialises in wool top dyeing, worsted spinning and the production of woven fabrics for use in local government uniforms and export to discerning clients in Japan and South Korea.

Ms Hall said the Vietnam textile sector is nearing 20,000 metric tonnes of worsted wool spinning capacity, or about 1 percent of Australia’s wool production.

“While there is currently very little direct trade to Vietnam, they are certainly valued partners of Australian wool growers,” she said.

The delegation also met with Australian Government representatives at the Australian Embassy in Hanoi, including the recently appointed Australian Ambassador to Vietnam, Ms Gillian Bird.

WoolProducers said this meeting provided an opportunity to outline work undertaken through the ATMAC grant program and the opportunities for both indirect and direct trade of Australian wool to Vietnam, including government programs to support supply chain development in Southeast Asian markets, such as Vietnam.

The delegation attended the grand opening of the Ninh Thuan (tops) Dyeing Textile Co. Ltd (NDT), with a Phase 1 annual capacity of 1500 tonnes and the Da Lat Worsted Spinning (DWS) mill, with a capacity of 3000 tonnes per year. Both NDT and DWS are owned by Südwolle Group, a family-owned company and leading manufacturer of wool yarn with over 3200 employees, based in Nuremberg, Germany.

“It is great to see major European companies investing in cutting edge facilities in Vietnam to deliver top-quality yarns and downstream products to both domestic and international processors and consumers,” Ms Hall said.

“Vietnam is clearly emerging as a major global player in the production of premium quality wool products and garments.”

At the end of the week the delegation then went on to visit Lien Phuong Textile & Garment Corporation (LPTex) in Ho Chi Minh City. LPTex is involved in weaving and tailoring activities, with a manufacturing capacity of 6,000,000 m2 of fabric/year, delivering premium textiles and garments to leading fashion brands, with aspirations for upstream investment in top dyeing and spinning.

The visit was made supported by WoolProducers Australia’s in-country representative, Kelvin Le. Mr Le works within the Australian Chamber of Commerce in Ho Chi Minh City and has been instrumental in strengthening ties between the Australian wool industry and the Vietnamese textile sector over the last two years, particularly the exploration of potential early-stage processing of Australian wool in Vietnam. Mr Le’s position is currently funded by WoolProducers and WoolWorks NZ.

The delegation was also involved in an event held in Ho Chi Min City on 11 April, hosted by the Australian Chamber of Commerce (AusCham) to showcase the opportunities for Australian wool within Vietnam’s dynamic textile sector.

The function at the Sofitel Saigon Plaza Hotel was opened by Emma McDonald, senior trade and investment commissioner for Vietnam and Cambodia, and attendees heard of the potential of Australian wool.

As processing innovations continue to redefine its versatility, wool is recognised as a sustainable technical fibre, opening doors to a wide array of uses that cater to diverse consumer markets, WoolProducers said.

Participants heard from industry leaders, including representatives from AusCham, WoolProducers Australia, Deakin University, Michell Wool, and Eqwools.

A highlight of the event was a presentation from Eqwools outlining an innovative wool/cotton blend that incorporated an interactive experience through FibreTrace which embeds traceable identification into raw fibres.

“The presentations highlighted the need for a fresh perspective on wool, unveiling exciting prospects for Australian woolgrowers and their integration into the Vietnamese textile landscape,” Ms Hall said.

“As we navigate the future of textile markets, this event underscores the importance of collaboration and innovation in harnessing the full potential of Australian wool, positioning it as a key player in the vibrant Vietnamese textile market.”