With approximately 60-70% of garment export revenue destined for developed markets, where the green consumer movement and sustainable supply chain requirements are robust, Vietnam's textile and garment export industry is acutely aware of the need for green transition in its business operations.

As mentioned, many textile and garment manufacturers exporting to markets like the EU, the US, and Japan have been implementing green and sustainable requirements guided by the EU Strategy for Sustainable and Circular Textiles (EUSSC) as voluntary standards set by customers.

However, examining the EUSSC's direction reveals that future mandatory EU green and sustainable regulations will have a broader scope and significantly stricter requirements compared to the current voluntary sustainability standards demanded by EU and US customers.

Domestically, aiming for carbon neutrality by 2050, the Vietnamese government has also begun implementing specific policies to promote green transition in manufacturing and processing activities, particularly from the perspective of information (greenhouse gas emission inventories) and promoting responsible production (extended producer responsibility).

Under pressure from both international and domestic green transition requirements, some textile and garment companies have taken initial steps toward green and sustainable transformation. Here are some examples:

- Recycled fiber production: Several joint ventures between Vietnamese businesses and foreign partners have emerged to produce recycled fibers, subsequently used to manufacture fabrics and yarns for their export products.

- Renewable energy utilization: Some large Vietnamese textile and garment companies have started using solar power for their production lines.

- Wastewater treatment: Many textile and garment enterprises in Vietnam have implemented advanced wastewater treatment technologies (e.g., using chemicals to neutralize or eliminate toxic components in wastewater from textile dyeing processes, using microorganisms to break down harmful organic structures in wastewater) to treat wastewater and partially reuse it, minimizing environmental impact from wastewater discharge.

- Green material usage: Some Vietnamese textile and garment companies have begun using green input materials for production. Some even have their own research and development (R&D) facilities to ensure environmentally friendly product designs or utilize natural materials (e.g., fabrics from lotus silk, mint, bamboo fiber, coffee grounds).

Despite recognizing the necessity of a green transition in export production and the existence of initial examples of practical green transition efforts, the actual results remain limited in scope and scale.

For the majority of Vietnamese textile and garment exporters (mostly small and micro enterprises), green transition remains a significant challenge in terms of cost, technology, and human resources. Therefore, besides individual businesses' efforts in researching, preparing resources, and gradually implementing transition activities in relevant aspects, government policy support is crucial to accelerate this process. This is particularly true for incentive measures prioritizing access to capital, technology, and other support services for businesses undertaking green transition. In fact, supporting green transition in the textile and garment industry, and manufacturing and processing activities in general, is also a policy requirement for Vietnam's sustainable development, bringing practical benefits to Vietnamese workers and the environment.

Source: Center for WTO and International Trade - VCCI 

• The Vietnamese Textile Industry Facing the Requirements of the EUSSCT