Vietnam to establish over-40-hectare fashion supply chain R&D center

The Vietnam Leather, Footwear and Handbag Association (Lefaso) hosted a high-level seminar titled "Developing Supporting Industries to Enhance the Competitiveness of Vietnam’s Fashion Industry" at the Saigon Exhibition and Convention Center on Jul 9.

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The Vietnam Fashion Supply Chain Research and Development Center spans over 40 hectares.

The event brought together Deputy Minister of Industry and Trade Truong Thanh Hoai, representatives of associations, and hundreds of domestic and international enterprises operating in the leather and footwear sector.

In his opening remarks, Lefaso Chairman Nguyen Duc Thuan highlighted that the textile–garment and leather–footwear industries remain two of Vietnam’s key economic pillars. In 2024 alone, these sectors generated a combined export turnover of US$72 billion, maintaining an average annual growth rate of 10 percent. With over 16,348 businesses employing nearly 5 million workers, they account for 22 percent of Vietnam’s industrial workforce, playing a crucial role in labor market development, job creation, and social welfare.

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An overview of the seminar

Reflecting on more than four decades of growth, Mr. Nguyen Duc Thuan noted that Vietnam has emerged as one of the world’s leading manufacturers of garments and footwear. However, the industries continue to face significant challenges that hinder their further integration into the global value chain.

Recognizing the strategic importance of these export-driven sectors, the Vietnamese Government has introduced a series of long-term development policies. The Prime Minister issued Decision No.1643/QD-TTg on December 29, 2022, approving the national strategy for the development of the textile–garment and leather–footwear sectors through 2030, with a vision to 2035. This follows Resolution No.115/NQ-CP (dated August 6, 2020), which outlined solutions to accelerate industrial development. Both documents clearly define objectives and action plans to upgrade the domestic fashion supply chain, focusing on diversification, autonomy, sustainability, and deeper integration into global supply networks.

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Delegates at the seminar

To implement this strategy, Lefaso is preparing to establish the Vietnam Fashion Supply Chain Research and Development Center, slated for the 2026–2030 period. Positioned as a national strategic project, the center will be located across Tan Van and Dong Hoa wards in HCMC, covering a planned area of over 40 hectares.

Once operational, the center will serve as a comprehensive support hub for enterprises, encompassing seven core functions: strengthening connections across the fashion supply chain; showcasing and testing new materials and technologies; providing creative and R&D spaces; organizing exhibitions and industry events; offering training and consulting services; promoting sustainable fashion and tech adoption; and facilitating international cooperation and export growth.

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Lefaso Chairman Nguyen Duc Thuan with partners

Throughout the seminar, both local and foreign enterprises exchanged insights on how to effectively develop Vietnam’s supporting industries, which are vital to building a more resilient and competitive fashion sector. These contributions are expected to help the industry achieve breakthrough progress, generate greater added value, and ultimately contribute to Vietnam’s sustainable development.

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