It is necessary to soon have instructions for implementing the Textile, Garment, and Footwear Development Strategy

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Mr. Vu Duc Giang, Chairman of Vietnam Textile and Apparel Association.

What is the trend of green development and sustainable development posing challenges for Vietnam's textile and garment industry, Sir?

As we know, the Vietnamese Government signed a commitment at COP 26 to bring net emissions to zero by 2050. This poses 5 major problems for industries in general and the textile and garment industry in particular.

The first is the compliance of businesses and people with the COP 26 strategy that the Government signed. In particular, businesses must comply with commercial contracts signed with brands. In particular, some markets such as Europe and the US are introducing new policies that force businesses to adapt.

Second, is the green trend, the trend of sustainable development, and the trend of using recycled products that businesses must keep up with and comply with the conditions in the technical barriers set by some countries. Along with that, businesses must also ensure the ability to adapt to recycling requirements in textile products.

Third is the issue of chain links in industrial fields, including the textile and garment industry, the leather and footwear industry, and the recycling industry.

Fourth is the issue of finance for investment and State policies for green development and sustainable development. In particular, State agencies need to introduce clear policies and create conditions for businesses to keep up with this trend. Because businesses want to survive, they must comply with the conditions in trade agreements, commercial contracts, and the requirements of brands. In fact, Vietnam's textile industry has many product lines that use recycled products at a rate of 30%, even 50-60%.

Fifth is community awareness of green and sustainable development. Accordingly, it is necessary to promote communication to raise awareness among workers, people, and management agencies on this issue.

What is the current level of interest of Vietnamese textile and garment businesses in this trend, Sir?

In my opinion, businesses need to be classified into 3 levels. The first group is large-scale businesses with sufficient financial and human capacity and a stable market. These businesses have invested in developing green products, and renewable energy, converting from coal-fired boiler systems to electric ones... The second group is medium-sized businesses.

These businesses also have the ability to associate with large businesses to implement green development strategies. The third group is small businesses facing the greatest difficulties because in order to invest in green development, these businesses need to have finance and must meet the evaluation standards of brands to achieve the stability factor for developing orders.

In fact, Vietnamese textile and garment businesses have invested a lot in green and sustainable development. In early November, the Vietnam Textile and Apparel Association will lead European ambassadors to visit a number of factories meeting green standards in the Northern region. In the South, many factories have achieved green standards.

As you have just said, finance and policy are two big challenges for textile and garment businesses in the greening trend. What recommendations do you have for two issues to support businesses?

Currently, Vietnam's textile and garment industry still has to import a relatively large amount to cover the supply shortage. To improve this situation, from the end of 2022, the Prime Minister has approved the Strategy for developing Vietnam's textile, garment, and footwear industry to 2030, with a vision to 2035. Accordingly, the Vietnam Textile and Apparel Association is working with the Ministry of Industry and Trade to propose that the Government soon provide guidance on implementing this strategy so that localities can plan and attract investment in industrial parks meeting environmental standards.

At the same time, the Ministry of Natural Resources and Environment needs to build an environmental fund that industrial parks can invest in wastewater treatment systems meeting environmental standards under the Law on Environmental Protection and comply with the provisions of trade agreements.

By doing these things, the textile and garment industry will reduce the amount of foreign imports and be proactive in raw materials according to the origin requirements of trade agreements, such as CPTPP requires textile products to originate from yarn onwards, EVFTA requires fabric origin... From there, it is possible to take advantage of benefits from tariff lines in trade agreements.

In particular, I think that policies must be realistic. If there are inadequacies, they need to be adjusted to create conditions for businesses to develop stably, meet green standards, and develop sustainably. By doing so, Vietnam's textile and garment industry will have a basis to achieve the export target of US$ 40 billion this year.

Thank Sir!