Numerous textile and garment companies are ramping up efforts to green their production processes, ensuring alignment with environmental standards and regulations related to product origin.
The qualitative push for greener practices is increasingly being backed by policies targeting manufacturers and consumers, focusing on taxes, waste management, and emission controls.
The European Union (EU), a key export market for Vietnam’s textile and garment sector, is actively advancing the European Green Deal. This initiative aims to cut net emissions by 55% by 2030, relative to 1990 levels, and achieve carbon neutrality by 2050.
According to the Ministry of Industry and Trade, this strategy is a cornerstone for the EU, guiding the revision of regulations across various sectors. For the textile and garment industry, critical regulations include ecodesign requirements for sustainable products, waste directives, and extended producer responsibility programs.
In response to these evolving demands, May 10 Corporation has been greening its production processes for approximately three years. The company has invested in modern machinery and equipment that use less electricity, made significant investments in solar energy systems and rooftop power, and integrated supply chains within Vietnam and abroad to maximize the use of recycled and natural materials. Additionally, they ensure that the fiber content in their products meets customers’ origin requirements.
The Vietnam National Textile and Garment Group (Vinatex) is also taking steps to reduce carbon emissions by measuring the carbon footprint throughout product life cycles and developing a green, circular production strategy. So far, group members have cut electricity consumption per product unit by 2% compared to 2022.
However, the Vietnam Textile and Apparel Association (VITAS) notes that the domestic legal framework is still lacking, with no specific policies or regulations for the sector concerning the circular economy. Regulations on greenhouse gas inventory and carbon taxes are also behind international timelines.
To navigate these challenges, companies are advised to remain flexible in the short term, capitalizing on market opportunities and focusing on technically demanding, small-batch, high-value-added products rather than low-cost, mass-market items, which are harder to compete with.
