Textile firms urged to go green to attract more credit

While textiles is one of the key industries in Việt Nam with high export revenue, it is also among industries that pose a high environmental and social risk, according to Nguyễn Quốc Hùng, general secretary of Việt Nam Bankers Association.

Workers make apparels for export at Thái Nguyên Export Garment Joint Stock Co in the northern province of Thái Nguyên. Textile firms should embrace green growth and strictly comply with green regulations on production in order to become more appealing to bank credit, notably green credit. VNA/VNS Photo Trần Việt

While textiles is one of the key industries in Việt Nam with high export revenue, it is also among industries that pose a high environmental and social risk, according to Nguyễn Quốc Hùng, general secretary of Việt Nam Bankers Association.

He was speaking at a seminar on risk assessment and credit extension to textiles on Wednesday.

Hùng said textiles have been affecting water resources and contributing to greenhouse gas emissions as textile production consumes massive amounts of water and energy.

For this reason, the industry has always been under careful assessments of environmental risk by credit institutions during the credit extension process.

To reduce the impact of industrial production on the environment, institutions have granted credit with preferential terms to clients who embark on projects supporting green growth.

By November 2021, 67 credit institutions have been engaged in “green credit”. Total credit to green projects accounted for over 4 per cent of domestic credit, up 0.46 per cent compared to 2020.

Meanwhile, credit to textiles stood at just VNĐ145 trillion (US$6.39 billion), equivalent to approximately 1.5 per cent of domestic credit.

The general secretary urged textile firms to embrace green growth and strictly comply with green regulations on production in order to become more appealing to bank credit, notably green credit.

Hoàng Thị Thanh Nga, head of textile group World Wide Fund For Nature, said a greener industry is crucial to Việt Nam as the country would not be eligible for tariff reduction/exemption under free trade agreements (FTAs) unless it meets the FTAs’ requirements for environmental protection.

Additionally, the Vietnamese government has been tightening regulations on water, energy, and chemicals to observe international agreements on climate change and improve water and energy security. That means the environmental impacts of textile projects will be assessed more closely by local authorities before any investment permit could be granted. Accordingly, green growth should be factored in textile production.

Another reason for green textiles is that more and more foreign partners are committed to sustainable development goals and raising the bar for their supply chains in terms of the environment. If Vietnamese textiles do not follow suit, its partners would find their supply elsewhere.

Traditional competitive advantages that Việt Nam always takes for granted, including low price and low requirements for FDI, are no longer making any difference. To hold ground in the international market, the country should create new competitive advantages by shifting focus to sustainable production, Nga added.

Textiles normally take up a low proportion in banks’ investment portfolio. Credit to the industry always pales in comparison with credit to the real estate or energy industry. Therefore, textiles firms are strongly advised to turn greener to be able to tap into the “green credit” offered by the banking sector. — VNS

Source: VNA
vietnamnews.vn

Related News

Urging credit flow into production and business sectors

Urging credit flow into production and business sectors

VCN - The allocation of cash flow among investment channels is influenced by many factors such as monetary policy, economic situation and investors' risk tolerance. But for developing the economy, cash flow must be directed into production and business, thereby reinvesting into the economy.
Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

VCN - In recent months, Vietnam's textile and garment exports have witnessed a strong recovery. However, along with opportunities, this top export industry in the country is facing many challenges from new, strict market requirements.
Revising SCT on automobiles must ensure harmony of benefits

Revising SCT on automobiles must ensure harmony of benefits

VCN - At the Workshop "Draft regulations on revising special consumption tax (SCT) on automobiles: Impacts and Recommendations" organized by the Central Institute for Economic Management (CIEM) on August 1, many multi-dimensional comments of experts and businesses have mentioned the impacts of the SCT policy on automobile products, especially on electric cars.
Imported raw marterials and fuel rise rapidly

Imported raw marterials and fuel rise rapidly

VCN - Raw materials of textile and garment or fuel like petroleum, coals were imported sharply in the first six months of 2024, according to General Department of Vietnam Customs.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version