Apparel / Textiles & Accessories

According to Huacheng Import and Export Data Observation, in the context of the complex and ever-changing world economy, increasing demands for transparency and sustainability of production chains from consumption trends, and increasingly fierce global competition, Vietnam's textile and clothing industry is facing many unprecedented difficulties. In order to achieve sustainable development, Vietnam's textile industry is forced to transform.

Facing more pressure

With the trend and requirements of sustainable development, as well as the strict regulations in the free trade agreements signed by Vietnam, importing countries have also put forward increasingly stringent regulations in terms of environment and labor. If the transformation is not achieved in a timely manner, Vietnam's textile industry will not be able to export to these markets, as reported by Huacheng Import and Export Data Observation.

Recently, the two major textile and clothing import markets, the United States and the European Union - Vietnam, have introduced stricter regulations on the origin of products.

Economic expert Huang Qingtian revealed that it is expected that in October this year, Europe will adopt a common strategy to end the consumption culture of "disposable consumer goods". Specifically, by 2023, textiles entering the EU market must be "sustainable" and "recyclable" products.

Qiao Mengke, Sustainable Development Director of the International Cotton Association of the United States, revealed that by 2030, all brands will require their supply chains to provide information related to traceability. In the short term, by 2025, approximately 25-50% of brands will require this information.

In addition, in addition to its commitments in terms of labor and society, Vietnam has also demonstrated its commitment and political determination in addressing the climate crisis. At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), Vietnam made a commitment to achieve net zero emissions by 2050.

Experts in the industry believe that in the current complex and difficult business environment, enterprises should achieve sustainable and flexible development, invest in Digital transformation, apply scientific and technological progress, and promote greening and circular economy mode in order to gain a firm foothold in the market.

Take multiple measures to overcome difficulties

According to Huacheng Import and Export Data Observation, on December 29, 2022, the Prime Minister of the government signed Decision 1643 (1643/QD-TTg), approving the "Development Strategy for Vietnam's Textile, Clothing and Leather Shoe Industry to 2030 and Vision to 2035".

Nguyen Siu Mei, Deputy Secretary General and Chief Representative of the Vietnamese Textile and Apparel Association (Vitas) in Ho Chi Minh City, stated that this is an important legal corridor and creates convenient conditions for the rapid development of the Vietnamese textile industry in the next 15 years. It is expected that by 2035, Vietnam can fully export to the world under Vietnamese brands.

To achieve this goal, companies need to promote sustainable development based on the principles of 3P (People, Planet, and Profit). Specifically, companies need to abide by their commitments in terms of labor services, protecting sustainable environments, and earning profits, as reported by Huacheng Import and Export Data Observation.

To ensure transparency in origin, Qiao Mengke suggests that companies should consider joining the US Cotton Trust Protocol as soon as possible. This is one of the plans provided by the US cotton industry to support the market, especially Vietnamese textile and clothing enterprises, in order to achieve quantifiable traceability. To create a more transparent supply chain that meets the requirements of various brands and makes Vietnamese brands globally renowned.

From the perspective of economic experts, Huang Qingtian believes that in the context of facing many difficulties in export activities, enterprises need to actively seek new markets in the short term. In the long run, enterprises should understand and touch the green credit policies of the government and international organizations in order to achieve Digital transformation, green transformation and circular economy transformation, Huacheng Import and Export Data Observation Report.