Vietnam National Textile and Garment Group (Vinatex) and Vietnam National Industry – Energy Group (Petrovietnam) have formalized a Principal Agreement to supply polyester staple fibre (PSF) through their subsidiaries, Vietnam Chemical and Fibre Joint Stock Company (VNPOLY) and several Vinatex member units. The agreement, signed on July 18 in Hanoi, aims to reduce Vietnam’s heavy reliance on imported PSF and strengthen the country’s textile and petrochemical supply chains.
Under the agreement, VNPOLY will initially provide PSF to one or two selected Vinatex downstream units for spinning, weaving, and dyeing trials. Upon ensuring consistent quality, the supply will extend to leading spinning firms, including Phú Hung, Phú Bài and Hòa Tho. These firms will primarily target premium export markets such as the European Union and South Korea, according to reports from domestic media.
VNPOLY’s General Director, Tran Huy Thu, highlighted the significance of the deal, noting that Vietnam currently imports 95% of its annual PSF demand, estimated at around 492,000 tonnes. With demand projected to grow to 550,000 tonnes by 2025, the partnership aims to shift the supply balance toward domestic production, enhancing national self-reliance.
Vinatex Chairman, Lê Tien Truong, emphasized the growing importance of PSF for spinning mills, citing a structural shift in the textile industry away from 100% cotton towards synthetic fibre blends such as CVC (Chief Value Cotton) and polyester (PE) yarns. He stressed the importance of close coordination with VNPOLY to ensure that the dye quality of PSF meets stringent standards required by export markets.
Petrovietnam Chairman, Lê Manh Hùng, described the agreement as a strategic move to revive the Ðình Vu PSF plant and to build a self-sufficient textile supply chain in Vietnam. He pointed to the collaboration between these two state-owned giants as a necessary response to a more protectionist global trade environment, underlining the need to enhance domestic resilience.
In a related development, VNPOLY also signed a long-term cooperation agreement with PVChem to jointly develop and exchange products and services in the fields of recycled plastics, fibres, and petrochemicals. This partnership will focus on the entire production value chain—leveraging their combined expertise in chemicals, PET chips, and fibre production—to further Vietnam’s goals of localisation and sustainability.
These dual agreements underscore Vietnam’s commitment to strengthening its domestic capabilities in textile, fibre, and petrochemical sectors. They also reflect the country’s alignment with global trends emphasizing supply chain security, traceability, and environmental sustainability.
