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BUSINESS REPORT
C O VER S T OR Y
For its benefit

Vietnam’s textile and garment industry has pledged
to reduce its emissions but there is much to do.

By VU KHUE

extiles and garments is an industry industries to 2030 with a vision to 2035, investors, stakeholders, and customers in
known to emit high levels of green- which was issued in 2022, the government proving their products meet sustainability
T house gases during operations, mak- identified the textile and garment industry requirements, environmental, social, gov-
ing efforts to reduce emissions an urgent as a key export sector for the economy. ernance (ESG) criteria, and greenhouse
task that will contribute to Vietnam’s goal In 2021-2030, growth in export revenue gas emissions reduction standards.
of achieving carbon neutrality by 2050. of 6.8-7.2 per cent annually is anticipated, The transition of the textile and garment
Research indicates that the fashion with value targeted at $50-52 billion by industry to becoming “green” and reducing
industry is responsible for 6-10 per cent 2025 and $68-70 billion by 2030. The emissions would undoubtedly contribute
of global carbon emissions, or approxi- input localization rate, meanwhile, is to significantly to Vietnam’s overall climate
mately 1.7 billion tons. This figure is pro- reach 51-55 per cent in the 2021-2025 goals and its bid to reach net-zero emis-
jected to increase to 25 per cent by 2050 period and 56-60 per cent in 2026-2030. sions by 2050.
as a result of increasing demand for clothing Given such goals, the industry’s green-
and the development of “fast fashion”. house gas emissions are guaranteed to Investing in green growth
increase rapidly, and this requires that Mr. Vuong Duc Anh, Chief of the Office
businesses proactively invest in advanced of the Board of Directors at the Vietnam
Major emitter
The fashion industry has also been technology and production processes that National Textile and Garment Group (Vina-
identified as the second-largest water- generate lower emissions. There are cur- tex), said that, over the past three years,
consuming industry in the world, requiring rently 294 textile, garment, and footwear many countries have begun to prepare
approximately 2,700 liters of water to enterprises required to conduct a green- roadmaps for sustainable development. This
produce a single t-shirt, which is enough house gas emissions inventory under means that green transition is no longer
to sustain one person for over 900 days. Government Decree No. 06/2022/ND- voluntary, and has gradually become a
It is also ranked as the second-largest CP on mitigating greenhouse gas emis-
water polluter globally, due to its use of sions and protecting the ozone layer.
harmful chemicals and improper treat-
ment of wastewater. Urgent implementation
According to the Vietnam Textile and Businesses must urgently prepare to
Apparel Association (Vitas), Vietnam’s conduct a greenhouse gas emissions inven-
textile and garment industry outlays $3 tory and cut emissions, so they can prevent
billion annually on energy and accounts any production disruptions that may affect
for around 8 per cent of energy demand their business results and head count.
in industry as a whole. Its emissions stand Conducting an inventory and proposing
at an estimated 5 million tons of carbon emissions reduction solutions are essential
dioxide a year. in helping textile and garment companies
Experts involved in a project support- keep pace with market trends and undergo
ing the Planning and Implementation of green transformation to meet the require-
the Nationally Determined Contributions ments of the brands they supply.
in Vietnam (SPI-NDC) note that Vietnam Decree No. 06 outlines a specific
is among the top 5 largest textile and roadmap for businesses, including textile
garment exporters globally, with key mar- and garment companies, to provide oper-
kets including the US, the EU, Japan, ational data and relevant information
South Korea, and China. Export revenue to support a greenhouse gas emissions
stood at $44.4 billion in 2022 and then inventory. Starting from March 2025,
$40 billion in 2023, while the target for businesses are required to submit such
this year is $44 billion. data to relevant management agencies
The volume of greenhouse gases cre- while building and implementing reduc-
ated by the industry is due to its use of tion plans. From 2026, they are required
large amounts of energy, raw materials, to adopt measures to mitigate emissions
and chemicals. The process of treating as planned, in compliance with the allo-
wet products, like fiber, fabric, and gar- cated emissions quota.
ments, creates the biggest “carbon foot- Mr. Koji Fukuda, Chief Technical Advi-
print”, due to water consumption in the sor from the Japan International Cooper-
washing, rinsing, pre-treatment, dyeing, ation Agency (JICA) in the SPI-NDC proj-
and post-treatment stages. ect, noted that many Vietnamese textile
In the strategy for the development of and garment companies are part of global
Vietnam’s textile, garment, and footwear supply chains and face pressure from

18 Vietnam Economic Times April 2024 en.vneconomy.vn