Vietnam's textile and garment enterprises are intensifying efforts to make their production processes more sustainable by aligning them with environmental standards and regulations regarding product origin.
According to the Ministry of Industry and Trade, the European Green Deal is driving the revision of regulations across the textile and garment industry including eco design requirements for sustainable products, waste directives, and extended producer responsibility programs.
In response to these new demands, May 10 Corporation has been greening its production processes for the past three years. The company has invested in modern machinery and equipment that consume less electricity and has made significant investments in solar energy systems and rooftop power installations. May 10 has also integrated its supply chains both within Vietnam and internationally to maximise the use of recycled and natural materials, ensuring that the fiber content in its products meets customer requirements for origin.
Than Duc Viet, General Director, May 10, emphasises, green production is no longer optional but a mandatory requirement. The company is transitioning from coal-based fuels to biomass electricity to further reduce carbon emissions. By 2024, subject to all its projects being fully operational, the company expects to cut its emissions by more than 20,000 tons annually.
Similarly, the Vietnam National Textile and Garment Group (Vinatex) is implementing carbon reduction strategies by measuring the carbon footprint across product life cycles and developing a green, circular production approach. So far, Vinatex members have reduced electricity consumption per product unit by 2 per cent compared to 2022.
Nguyen ThiTuyet Mai, Deputy Secretary General, VITAS, points out, major global fashion brands are increasingly prioritising green enterprises or requiring suppliers to adopt sustainable practices. This shift not only aligns with their business philosophies but also ensures compliance with increasingly stringent regulations.
However, despite the necessity of meeting green standards, the transition involves significant costs and extended timelines. Most Vietnamese textile exporters are small- and medium-sized enterprises (SMEs), making the switch to internal control systems and conducting greenhouse gas inventories both costly and time-consuming.
To navigate these challenges, enterprises are advised to remain flexible in the short term by seizing market opportunities and focusing on technically demanding, small-batch, high-value-added products, rather than competing in the low-cost, mass-market segment.
