Vietnam'S Textile Industry Changes Its Production Mode To Adapt To The Changing Situation

Under the background of complex and changeable world economy, increasingly demanding transparency and sustainability of production chain due to consumption trend, 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 was forced to transform.

Faced with more pressure

With the trend and requirements of sustainable development, as well as the strict provisions in the free trade agreement signed by Vietnam, importing countries have also put forward more and more stringent regulations on environment and labor services. Without timely transformation, Vietnam's textile industry will not be able to export to these markets.

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

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

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

In addition to its commitment to labor and society, Vietnam has also demonstrated its commitment and political determination to tackle 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 zero net emissions by 2050.

Experts in the industry believe that in the current complex and difficult business environment, enterprises can gain a firm foothold in the market by achieving sustainable and flexible development, digital transformation of investment, application of scientific and technological progress, and promotion of greening and circular economy mode.

Take multiple measures to overcome difficulties

On December 29, 2022, the Prime Minister of the Government signed Decision 1643 (1643/QD TTg) and approved the Development Strategy of Vietnam's Textile Garment and Leather Shoes Industry by 2030 and Vision to 2035.

Nguyen's Xuemei, Deputy Secretary General and Chief Representative of the Vietnam Textile and Clothing Association (Vitas) in Ho Chi Minh City, said that this is an important legal corridor, creating convenient conditions for Vietnam's textile industry to achieve rapid development in the next 15 years. It is expected that by 2035, Vietnam will be able to export to the world under the Vietnamese brand.

To achieve this goal, enterprises need to promote sustainable development based on the 3P (People, Planet, Profit) principle. Specifically, enterprises need to comply with their commitments in terms of labor services, protection of sustainable environment and profitability.

To ensure the transparency of origin, Qiao Mengke suggested that all enterprises should consider joining the US Cotton Trust Protocol as soon as possible. This is one of the plans provided by the American cotton industry to support the market, especially the Vietnamese textile and clothing enterprises to achieve quantifiable traceability. So as to create a more transparent supply chain, meet the requirements of various brands and make Vietnamese brands known globally.

From the perspective of economic experts, Huang Qingtian believes that in the context of 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 governments and international organizations in order to achieve digital transformation, green transformation and circular economy transformation.