Continuing to Build New Pathways for Australian Wool in Vietnam

As members of the Austrade Trade Diversification Network, we are continuing to pursue opportunities to diversify export markets for Australian wool. With the support of Austrade funding we recently had the opportunity to spend four intensive days in Vietnam meeting with government officials, textile manufacturers, industrial park developers, and supply‑chain innovators. The purpose was clear: to advance the next phase of WoolProducers Australia’s Trade Diversification Plan and explore Vietnam’s growing potential as a direct export destination for Australian wool. Joining us as members of an outbound delegation were representatives of AWEX, Michell Wool and Eqwools.

In recent years Vietnam has been quietly transforming into a major textile manufacturing hub. Its spinning capacity could consume the equivalent of 15% of Australia’s clean wool production, yet almost all of that wool passes via third countries before arriving in Vietnam, creating unnecessary cost, complexity, and vulnerability for both countries.

That’s why this trip mattered.

Strengthening Government and Industry Ties

Our first day began at the Australian Embassy in Hanoi, where we briefed DFAT and Austrade officials on the opportunities emerging from our Trade Diversification Plan. Embassy staff shared insights into Vietnam’s evolving political regulatory landscape that may influence future investment pathways. Importantly, there was strong interest in exploring cross‑commodity collaboration—bringing the story of excellence of Australian natural fibres to Vietnam.

Seeing the Opportunity First‑Hand

Across the next three days, we visited some of Vietnam’s most influential textile players. At Youngone, a global manufacturing powerhouse supplying brands like The North Face and Polartec, we saw firsthand the scale and sophistication of Vietnam’s production capability. Youngone alone purchases USD 25–30 million worth of wool yarn annually. Companies of such scale naturally have an interest in vertical integration, which can fundamentally reshape regional supply chains.

At Aurora Industrial Park, we toured a purpose‑built textile zone with the rare combination of water security, wastewater treatment, and industrial readiness required for wool processing. With 519 hectares of land and a newly commissioned backup water system, Aurora is one of the few locations in Southeast Asia capable of supporting scouring and / or top‑making at scale.

We also met with Lien Phuong Textile & Garment Corporation, Vietnam’s first vertically integrated wool fabric producer. Their ambition to establish a new spinning mill—supported by 10 hectares of available land—aligning perfectly with our vision for early‑stage wool processing investment in Vietnam.

A Sector Ready for Traceability and Sustainability

Across every meeting, one theme dominated: sustainability is no longer a “nice to have”—it’s a market access requirement. Whether it was Fashion Enterprise showcasing Fibertrace technology or the Vietnam Textile and Garment Association emphasising ESG compliance as a strategic imperative, it’s clear that Vietnam’s textile sector is rapidly aligning with the same values that underpin Australian wool’s global reputation.

Momentum and Next Steps

Our networking event and seminar at SaigonTex drew more than 100 participants, including government officials, brands, investors, and manufacturers. The level of interest exceeded expectations and confirmed what our Trade Diversification Plan has long argued: Vietnam is ready to become a major direct customer for Australian wool—if we help enable the processing capacity to support it.

This trip validated our strategic direction. We now have a clear picture of the partners, locations, and investment models capable of supporting early‑stage wool processing in Vietnam. The next phases of our work will involve targeted roundtables, deeper commercial engagement, and continued government‑to‑government cooperation.

While much of our focus in Vietnam was on building upstream processing capability, there is already a pathway for Premium Australian Merino to move—today, at scale, within the systems the market already runs on.

That pathway is eqwools™.

Designed for seamless integration into cotton spinning infrastructure, eqwools™ brings the natural performance of Merino—thermoregulation, moisture management, breathability, and odour resistance - into the world’s most widely used fibre systems.

Wool elevates every fibre it meets.

Blending Merino enhances how textiles respond - regulating temperature, managing moisture in real time, and extending garment life through greater comfort and reduced wash frequency. It expands not just performance, but possibility.

By refining shorter Merino fibres into a blowroom-ready format, eqwools™ transforms an underutilised resource into a high-performance, commercially viable input - ready for immediate adoption across woven and knitted applications, from fleece to fills.

For Vietnam, this shifts the equation. We don’t just need to focus on building future processing capacity – we have a fibre ready to run, ready to scale, and ready to unlock new demand for Australian wool.

Diversifying our export markets isn’t just prudent—it’s essential. After this visit, I’m more confident than ever that Vietnam will play a central role in building a more resilient, sustainable future for Australian wool.

ENDS