Out of the challenges for Vietnam’s textiles in the EU market from the European Green Deal, Vietnamese businesses in textile sectors may have certain advantages in implementing and complying with these green policies:

-    First, most specific green policies that directly affect the production and export of Vietnamese textiles to the EU are currently in draft form, in the public consultation and internal review among EU authorities, and not yet officially approved/adopted. Therefore, at this time, textile manufacturers and exporters to the EU do not have to comply with any new noteworthy green regulations or standards. And thus, businesses still have time to learn and adapt gradually.
-    Second, in practice, in recent years, to adapt to the green trends of local consumers, EU customers (importers, fashion brand owners) have gone far ahead of the competent authorities in the EU in green transition. For a long time, large EU customers have set certain green standards for manufacturers processing their orders in third countries. Thus, a significant portion of Vietnamese textile manufacturers and exporters have in practice been implementing various green standards in the textile production process, most of which are higher than the actual EU regulations. Therefore, when the green policies that the EU is currently drafting take effect, Vietnamese textile manufacturers and exporters may not find it too difficult or unfamiliar to comply with these requirements.
-    Third, with the main characteristic of producing and processing according to the patterns and orders of fashion brands in the EU, the group of textile manufacturers and exporters processing in Vietnam may not be the direct subjects to implement some specific green requirements (such as ecodesign, standards for chemicals/microplastics in fabric fibers, textile labeling, etc.), as these are issues that customers implement/designate. Of course, even with this group, in aspects related to direct production processes (such as production organization methods, technology used, waste treatment processes in production, energy use, etc,), textile manufacturers and exporters are still the main actors implementing green policies relating not only to legal perspective (must comply as regulated) but also the important factor in competition (to attract orders of EU customers).   

Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade
 

• Ways of European Green Deal’s impacts on Vietnam’s exports
• EU Green Deal and Vietnam's export: Impacted sectors
• EU Green Deal and Vietnam's export: Challenges of awareness change and enhancement
• EU Green Deal and Vietnam's export: Challenge in capability of response, compliance
• EU Green Deal and Vietnam's export: Challenge in the capacity of paying compliance fees