Australian Industry Hub has doors open for Vietnamese wool exports
China dominates the Aussie wool market, buying up to 85 per cent of total exports. But there’s another nation vying for our national clip.
Australia’s wool industry has moved a step closer to finding a new home for some of the national clip.
AusHub Vietnam has announced Australia would have support in Vietnam with a dedicated wool industry representative, tasked with finding ways of expanding wool’s trade footprint in that country.
The Australian Industry Hub (AusHub) is an initiative between the Australian Chamber of Commerce Vietnam and the Department of Foreign Affairs and Trade to facilitate access to markets in Vietnam for Australian industry groups in food fibre and forestry.
China is currently Australias’ biggest customer for Australian wool taking about 85 per cent of the total clip.
However, the industry has been working to broaden the customer base away from its heavy reliance on China.
WoolProducers chief executive officer Jo Hall said the organisation had lobbied hard to secure the Vietnam voice for Australian wool growers.
Ms Hall said the appointment would build on the recommendations and opportunities identified in a report released in November last year on creating a sustainable future for Australia’s wool supply chain.
“The dedicated wool representative will assist with the identification of pathways to expand trade opportunities for Australian wool to Vietnam,” Ms Hall said.
“Vietnam has strong economic growth prospects with a forecast 7 per cent growth in GDP in the coming year.”
Ms Hall said imports of carded/combed wool have been growing in recent years, complementing the growing textile sector within Vietnam,
More recently, a major global wool spinning operation has established a facility in Vietnam.
“The report identified Vietnam as a country worthy of further assessment for the establishment of early-stage wool processing as an avenue for market expansion,” she said.
“This, combined with the outlook for economic growth in Vietnam, particularly within their textile sector, presents an ideal opportunity for both countries”.
Ms Hall said market development activities have taken place in Vietnam in the past, but the partnership with AusHub could identify strategic opportunities for “new and vastly expanded early and intermediate-stage wool processing”.
“It is our intention that the AusHub wool industry representative will work closely with current Australian Wool Innovation market development activities in Vietnam,” she said.
Meanwhile the Australian wool market fell last week as a surge in supply took its toll.
The benchmark Eastern Market Indicator fell 10c/kg to close the week’s trading at 1364c/kg.
Another 53,000 bales are rostered for sale this week including a designated superfine sale in Sydney over two days.
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