Viet Nam's textile, garment, leather and footwear industry is preparing for significant structural changes with the establishment of a major research and development facility designed to transform the sector from import-dependent manufacturing to technologically advanced self-sufficiency. The initiative represents the country's most ambitious attempt to maintain its position as the world's second-largest textile and garment producer.
- The Viet Nam Fashion Supply Chain Research and Development Centre will span over 40 hectares across Tan Van and Dong Hoa wards in Ho Chi Minh City.
- The facility is scheduled to operate from 2026 to 2030 as a national strategic project proposed by Vitas and Lefaso.
- Industry leaders aim to achieve 70% localisation of raw and auxiliary materials within five years to meet international trade requirements.
KEY TAKEAWAY: The research centre represents Viet Nam's strategic pivot towards supply chain diversification, proactiveness and sustainability, enabling deeper integration into global supply networks and at the same time reducing vulnerability to external material dependencies that currently limit compliance with international trade agreement requirements.
WHAT'S AT STAKE: Viet Nam's fashion industry faces mounting pressure to comply with stringent rules of origin under new-generation trade agreements, particularly with demanding US and EU markets. The sector's continued heavy reliance on imported raw materials threatens its ability to maintain competitive advantages and could jeopardise export revenues that reached $72 billion in 2024.
CONTEXT FRAME: Viet Nam's textile, garment, leather and footwear industries employ nearly 5 million workers across 16,348 businesses, accounting for 22% of the country's industrial workforce. The textile and garment sector specifically ranks second globally with exports exceeding $44 billion in 2024, employing over 2.5 million direct workers while maintaining a 10% average annual growth rate across four decades of development.
CLOSE FOCUS: The research facility will serve seven core functions including strengthening supply chain connections, showcasing and testing new materials and technologies, providing creative research spaces, organising exhibitions and industry events, offering training and consulting services, promoting sustainable fashion adoption, and facilitating international cooperation for export growth.
- The centre will operate as a technology transfer hub connecting enterprises to foreign markets.
- Advanced technology access and raw material self-sufficiency capabilities will be prioritised.
- The facility aims to support enterprises in achieving breakthrough progress and generating greater added value.
- Both local and foreign enterprises will exchange insights on developing supporting industries for enhanced competitiveness.
