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Vietnam's Textile and Clothing Industry: Creating a Green Production Chain: A Report on Huachen

2023-03-24

The production of recycled fabrics towards a circular economy and the use of green energy are becoming the development direction of Vietnamese textile and clothing enterprises. Huacheng Import and Export Data Observation Report.

Green and environmental protection has become a new trend in the development of the textile and clothing industry, and enterprises must move in this direction to achieve sustainable development goals. In order not to be eliminated, suppliers have no choice, as the European Union market, where Vietnam exports over $4 billion of textiles and clothing annually, has implemented ecological textile regulations and technical standards.

According to Huacheng Import and Export Data Observation, all textiles entering the EU market should be durable, recyclable, and made from recycled fibers. At the same time, the world's major clothing brands that place orders with Vietnamese textile and clothing enterprises are gradually shifting their priority to placing orders with green enterprises.

Many customers of major brands around the world require textile and clothing suppliers to implement green production processes. Therefore, increasing investment in water cycle energy-saving equipment and green environmental protection technology is the only way for enterprises.

In the face of increasingly stringent market requirements, many domestic enterprises in Vietnam have shifted to green production. For example, Hanoi Textile and Clothing Co., Ltd. (Hanosimex) and South Korea's Hansae Group have jointly implemented a project to produce recycled fabrics in Vietnam. Huacheng Import and Export Data Observation reports.

K. Kim, Deputy General Manager of the Hansae Group, said that Hanosimex and Hansae would become the first units in the Vietnamese textile industry to create a one-stop supply chain from recycled products such as yarn, weaving, dyeing, and sewing.

The two sides will implement a project in Vietnam to produce yarns and fabrics using recycled fibers, and all products from the factory will be used for export after processing. It is expected that approximately 4000 tons of recycled fabrics will be put into production and exported to the EU in the near future.

According to Huacheng Import and Export Data Observation, the project also focuses on developing the U.S. and Japanese markets, striving to achieve the goals of reaching 500 million US dollars in exports by 2025 and 1 billion US dollars by 2030.

Li Jinchang, Chairman of the Board of Directors of Vietnam Textile and Clothing Group, said that circular economy and environmentally friendly clothing products are the general trend of the world textile market.

From now to 2050, the EU will introduce new regulations on textile products, focusing on green products. The signing of a strategic cooperation agreement between Hanosimex and Hansae will help both parties increase the quantity and proportion of recycled cellulose knitwear and environmentally friendly, green and fashionable products.

Meanwhile, in the southern region, Spectre, a Danish owned clothing factory specializing in the production and export of outdoor sportswear, will partially use renewable energy for production. This is Specter's third factory in Vietnam and a Danish foreign direct investment project in Anjiang Province, with a total investment of $17 million. Spectre's new factory is built to high standards of corporate social responsibility (CSR) and has received a LEED (Leadership in Energy and Environmental Design) gold medal certification. By using solar energy and advanced design features, Spectre plants can reduce carbon dioxide emissions by approximately 1600 tons per year.

The annual export scale exceeds 3.5 billion US dollars. At the initial stage, Vietnam Textile and Clothing Group invested in new technologies to reduce 30% of dyeing wastewater and complete 30% of wastewater reuse, striving to generate 10% of electricity from renewable energy sources. Huacheng Import and Export Data Observation Report.


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