Wool's Vietnam push

Australian Wool Innovation (AWI) launched its $240,000 Out of Vietnam project last year, with the aim of getting 12 manufacturing partners on board by the end of the financial year.

Today there are close to 50 companies using Australian wool.

"When we started the project none of the manufacturing partners knew anything about wool, and some of them had never even felt it," said AWI project development and commercialisation general manager Jimmy Jackson said.

Mr Jackson, who was in Vietnam last week with AWI chairman Wal Merriman and AWI board member David Webster to assess the project’s progress was astounded by the progress manufacturers had made in such a short period.

Initially AWI ran training courses to explain wool’s properties, benefits and features for manufacturing and producing garments.

The next step was to introduce the manufacturers to suppliers of Australian wool yarns.

"The most important aspect was to send AWI technicians to Vietnam to work in the factories, and teach them how to knit, dye and finish wool," Mr Jackson said.

AWI also had to explain the Woolmark standards and requirement in terms of both wear and laundering performance.

Now the Vietnamese manufacturers are confident in producing quality wool garments, AWI will introduce them to global retail and brand buyers.

The first delegation of 10 companies from Japan will travel to Vietnam next month to meet the Vietnamese partners.

Mr Jackson is confident that commercial business will begin following the visit.

"This confidence is boosted by the fact that some of our partners have already received commercial orders for products made from Australian wool," he said.

Following the Japanese buyers’ visit, will be a contingent of Korean retailers and in the future AWI plans to emulate this with buyers from Europe and the United States.

This year marks the 40th anniversary of diplomatic links established between Australia and Vietnam, and following consultation with the Australian embassy in Hanoi, AWI will host fashion shows in Ho Chi Minh City and Hanoi later in the year.

Mr Jackson said the event themed “Grown in Australia, Made in Vietnam", would not only be a celebration of the anniversary, but also provide AWI with the opportunity to invite more retail buyers to see products made using Australian wool.

Mr Jackson recognised there was little opportunity for sales in the domestic market for wool products in Vietnam, however, AWI was working with a company in Ho Chi Minh City to produce the classic Vietnamese ladies outfit, the ao dai, using wool.

Traditionally, the garment is made from silk, but today polyester is more commonly used.

"With the increasing wages in Vietnam we see there is a chance for wool to be used for the garment, as wool had great breathability properties, and in the heat and humidity of Vietnam you need that," Mr Jackson said.

On route to Vietnam the trio scoped out further potential for Australian wool at the new multi-million dollar Compass Wool Processors factory in Malaysia.

Compass Wool Processors are in the midst of installing wool processing equipment which will be operational by the end of the year.

Mr Jackson said initially they would perform raw wool scouring and top making on a commission basis primarily for the Australian industry.

Later, there were plans to establish a plant that will perform shrink-proofing (machine wash treatment), mercerisation and Basolan (soft handle processes).

Mr Merriman said it was great to see significant investment in new factories that can clean and comb wool, which bodes well for the future of the Australian woolgrowing industry.