Upgrading the Textile Value Chain – Self-sufficiency in Raw Materials: The Path for Vietnamese Enterprises to Reach the Global Stage

In the context of globalization and the constant changes in import/export policies, self-sufficiency in raw materials has become one of the key factors enabling Vietnamese enterprises to compete in the international market. Particularly in the textile and footwear industries, which heavily rely on foreign supply chains, mastering the sources of raw materials presents an opportunity to optimize profits and increase product value.

The Dependence on Raw Materials and Current Challenges

According to statistics, 60-70% of small and medium-sized enterprises in the textile industry face difficulties in sourcing raw materials. Most of these businesses depend on customer-specified suppliers or must seek materials from international vendors. This results in a modest profit margin, only 1-3% per order, the lowest in the textile value chain.

The Vietnam Leather, Footwear, and Handbag Association has pointed out that overreliance on outsourcing and leaving raw material procurement to foreign supply chains is a significant challenge for the textile industry. This not only diminishes competitiveness but also puts businesses in a passive position amidst market fluctuations.

International Trends and New Requirements

Along with new demands from high-end markets like the U.S. and Europe, such as product traceability, social and environmental responsibility, and even recycling rates in products, partnering with units that hold international certifications like OEKO-TEX, GRS, etc., will help Vietnamese businesses meet export standards and fulfill stringent international market requirements.

Thien Phuoc – A Partner in Raw Material Self-Sufficiency

Thien Phuoc, an exclusive Southeast Asian brand in the trade and supply of Ramie yarn, fabric, and fashion, is a trusted partner both domestically and internationally. With self-sufficiency from cultivation to the final product, our Ramie products have been exported to demanding markets such as Europe, Australia, the U.S, Japan, … We supply 90 tons of pure yarn and 800 tons of blended yarn monthly, with yarn counts ranging from 8Nm to 100Nm; 1 million tons of Ramie fabric monthly, with the potential to increase up to 8 million tons depending on specific structure and technology requirements.

Conclusion

Self-sufficiency in raw materials is not just a trend but a survival factor for Vietnamese textile enterprises to rise to the global stage. With the partnership of reliable suppliers like Thien Phuoc, Vietnamese businesses are on the path to upgrading their value chains, optimizing profits, and confidently conquering the world’s most demanding markets. Learn more HERE!