Vietnam is navigating these changes, seeing them as a mix of challenges and opportunities. — VNA/VNS
HANOI: The global garment and textile industry is undergoing a significant shift as regulations aimed at sustainability reshape the sector.
From California’s SB 707 law mandating producer responsibility for textile waste, to the European Union’s (EU) stringent Extended Producer Responsibility programmes, stakeholders across the supply chain are grappling with new environmental and social benchmarks.
Vietnam, a major player in the global textile market, is navigating these changes, seeing them as a mix of challenges and opportunities.
“For Vietnam, whose textile industry contributes 10% of the nation’s gross domestic product and is the world’s third-largest garment exporter, these regulations pose unique challenges,” said Vietnam Textile Apparel Association vice-chairman and general secretary Truong Van Cam.
“With approximately 60% of raw materials still sourced from China, complying with traceability requirements and sustainable sourcing is daunting.”
Sustainability at the American Apparel & Footwear Association senior director Chelsea Murtha highlighted potential shifts in sourcing.
“Brands are now prioritising recyclable materials and rethinking assembly processes,” she said.
This push could favour countries that develop advanced textile recycling capabilities, putting Vietnam in competition with geographically closer regions like Central America.
Vietnam’s reliance on imported raw materials, particularly from China, creates vulnerabilities, Cam said.
The US Uyghur Forced Labour Prevention Act has already disrupted imports linked to Xinjiang, pushing companies to ensure clear supply chains.
While there are emerging investments in cotton recycling facilities in Vietnam, the nation still lags in large-scale textile-to-textile recycling, a critical capability for meeting international sustainability demands.
Cam added that with a significant proportion of labour focused on basic cut-and-sew operations, there is a need for upskilling to adapt to circular manufacturing processes.
Despite these challenges, Vietnam’s garment and textile sector is well-positioned to adapt and thrive.
Companies like Garment 10 Corp have established a green factory which embraces solar energy and biomass-powered systems to meet international standards.
“The change in sources of energy helps the factory obtain the prestigious international renewable energy certificate I-REC, reducing the company’s electricity costs.
“As a result, the company’s products meet strict standards from major export markets such as the EU, the United States and Japan,” said Garment 10 Corp deputy general director Nguyen Thi Bich Thuy. — Viet Nam News/ANN
