Brian Jeffrey
| Workers manufacturing goods for export at Garment 10 Corporation. — VNA/VNS Photo |
Legislations such as California’s SB 707, which imposes producer accountability for textile waste, and the European Union’s rigorous Extended Producer Responsibility (EPR) initiatives are prompting supply chain stakeholders to adjust to new sustainability and societal criteria.
As a key player in the global textile industry, Việt Nam is adapting to these shifts, perceiving them as both challenges and potential advantages.
“With the textile sector accounting for 10% of the nation’s GDP and positioning as the third largest garment exporter globally, Việt Nam faces distinct hurdles,” noted Ph.D. Trương Văn Cẩm, Vice Chairman and General Secretary of the Việt Nam Textile Apparel Association (VITAS).
“A significant 60% of our raw materials are sourced from China, making the compliance with traceability and sustainable sourcing especially challenging,” he added.
Chelsea Murtha, a Senior Director at the American Apparel & Footwear Association (AAFA), pointed out possible changes in sourcing strategies.
“Companies are increasingly focusing on recyclable materials and revising their production methods,” she stated in an interview with Việt Nam News.
This trend could favor countries that enhance their textile recycling technologies, placing Việt Nam in competition with closer regions like Central America.
Vietnam’s heavy dependence on imported materials, mainly from China, has created vulnerabilities, according to Cẩm.
The US Uyghur Forced Labour Prevention Act has impacted imports tied to Xinjiang, compelling firms to maintain transparent supply chains.
While new cotton recycling facilities are emerging in Việt Nam, the country still lacks extensive textile-to-textile recycling capabilities that are essential for meeting global sustainability expectations.
Cẩm emphasized the need to upskill the labor force, as many workers currently engage in basic cut-and-sew tasks, to facilitate a transition to circular manufacturing processes.
Prospects for Development
Nevertheless, Việt Nam’s textile and garment industry is positioned to adapt and flourish despite these obstacles.
Companies such as Garment 10 Corporation have pioneered green factory initiatives that utilize solar energy and biomass systems in accordance with international standards.
“Switching energy sources has allowed the factory to earn the respected international renewable energy certificate I-REC, lowering electricity costs. Consequently, our products align with strict standards from major markets like the EU, the US, and Japan,” said Nguyễn Thị Bích Thuỷ, Deputy General Director of Garment 10 Corporation.
This green initiative serves as an exemplary model for how Vietnamese companies can align themselves with global sustainability trends.
Việt Nam’s involvement in 16 foreign trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Việt Nam – EU Free Trade Agreement (EVFTA), provides access to markets requiring sustainable offerings, remarked the VITAS Secretary General.
These agreements can also draw foreign investments to bolster domestic raw material production.
“With the election of US President Donald Trump, Chinese goods may face increased tariffs, potentially prompting Chinese garment manufacturers to relocate to Việt Nam, which will strengthen local material sourcing,” Cẩm stated.
He also highlighted the necessity for cooperation among government entities, brands, and international organizations to create resilient supply chains and encourage innovation.
Murtha from AAFA shared this perspective, underscoring that nations skilled in recycling and sustainable assembly will spearhead the future of the garment industry. — VNS
