Việt Nam works to diversify raw material sources to ensure sustainable growth

Việt Nam works to diversify raw material sources to ensure sustainable growth

The Ministry of Industry and Trade is drafting a scheme on diversifying imported raw material sources for domestic production, with feedback from industry associations and businesses being incorporated into concrete proposals and support policies.

Workers complete the final stages before packaging products at Viễn Thiịh Shoe Company in Long Hậu Industrial Park in Tây Ninh province. VNA/VNS Photo

 Amid global economic and trade volatility, diversifying sources of imported raw materials for domestic production is essential to ensuring more balanced and sustainable import – export growth.

According to the Ministry of Industry and Trade’s Industry Agency, plastics is a fast-growing industries but remains primarily a technical processing sectors. The industry depends heavily on imports, with 70 per cent of input materials hailing from abroad, as domestic sources can supply only about 1 million tonnes annually. Shortages of recycled plastic particles and an underdeveloped supporting industry further limit capacity. Meanwhile, material costs form the largest component of production expenses. As a result, enterprises are forced to maintain large inventories to avoid disruptions.

The Việt Nam Plastics Association (VPA) reports that in 2024, the country imported 8.5 million tonnes of virgin and recycled resins, plus around 0.5 million tonnes of scrap plastics, for production. In the first quarter of 2025, imports reached 2.28 million tonnes worth US$3.02 billion, up 25.2 per cent in volume and 20.8 per cent in value year-on-year.

The chemical industry faces similar challenges, relying on imported industrial salt due to inadequate domestic supply and quality. Industrial salt requires at least 98 per cent sodium chloride (NaCl) purity and minimal impurities—standards not met by Việt Nam’s traditional manual salt production, which has low yield and inconsistent quality.

Domestic salt is mainly for consumption, while imported industrial salt, refined from raw salt, is vital for producing chemicals such as caustic soda and soda ash used in health care and manufacturing.

Other key manufacturing sectors also grapple with raw material shortages.

Nguyễn Thị Thanh Xuân, Vice Chairwoman and General Secretary of the Việt Nam Leather, Footwear, and Handbag Association, said input supply remains the biggest bottleneck, with most materials imported or having supply sources designated by foreign buyers. To address this, the association is seeking greater domestic self-sufficiency to improve autonomy, attract more orders, and foster sustainable growth.

She noted that the leather – footwear, textile – garment, and wood – forestry associations have jointly proposed a multifunctional centre serving as a hub for R&D, innovation, and raw material trading for the fashion sector. An initial 40-hectare site has been identified, but industry leaders emphasise the need for breakthrough policies and strong support from authorities.

To advance this direction, the Minister of Industry and Trade has tasked agencies, including the Agency for Foreign Trade, Trade Promotion Agency, and Industry Agency, with drafting a scheme on diversifying imported raw material sources for domestic production.

Nguyễn Anh Sơn, Director of the Agency for Foreign Trade, said this is a ministry priority, with feedback from industry associations and businesses being incorporated into concrete proposals and support policies.

At a recent consultation, participants agreed that many industries remain overly dependent on a narrow range of import markets due to domestic supply gaps. They shared the view on the scheme’s necessity and expressed hope that it will offer practical and cross-sectoral solutions. Some recommended expanding its scope to include mechanical and metal products. 

Bizhub