Textiles, footwear enterprises need support to green the supply chain

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The textile and garment industry is striving towards “green” production, better meeting the requirements and regulations of the import market. Photo: H.D

Improving position and competitiveness

Mr. Le Xuan Thinh - Director of Vietnam Cleaner Production Center (VNCPC) said that textiles, garments and footwear have now deeply participated in the global value chain, textile products have been exported to more than 100 markets. The open market goes hand in hand with the pressure of trends, requirements for "greening" products, as well as reducing greenhouse gas emissions.

Particularly, there must be a roadmap for CO2 emission reduction of the textile and garment industry, which currently emits about 5 million tons of CO2 annually. In Decision 13/2024 of the Prime Minister just announced, enterprises must inventory greenhouse gases, of which nearly 100 textile and garment and footwear enterprises must inventory greenhouse gases to move towards net zero emissions.

From a business perspective, Ms. Nguyen Thi Minh Hai, Head of Sustainable Development Department of Bac Giang Garment Corporation (LGG) said that, like other textile and garment enterprises, LGG is also part of the global textile and garment supply chain.

The greening standards set by import customers are increasingly strict, requiring an increasingly high level of identification, prevention, reduction and responsibility of enterprises towards the environment and society.

Ms. Nguyen Thi Minh Hai shared that at LGG, from the beginning, the enterprise also determined to be a pioneer in the issue of greening, as well as sustainable development. At the same time, the enterprise has identified both challenges and difficulties in participating in the textile supply chain with the requirement of greening. However, this was also an opportunity to approach a more transparent production chain, approach and strengthen cooperative relationships with the green production chain.

At the same time, businesses are exposed to opportunities to access advanced production methods, good technology, clean energy.

In addition, businesses also focus on evaluating global recycling certificates, certificates for the use of recycled materials or responsible feather certificates and many other social responsibility certificates that customers require and a series of activities to raise awareness of workers.

According to Ms. Nguyen Thi Minh Hai, when participating in the green supply chain as well as implementing activities on green development and sustainable development, the first benefit is that businesses save a lot of costs.

In addition, the level of recognition of the enterprise to customers is also enhanced, the position is also improved, the competitiveness compared to other enterprises is also highly appreciated by customers.

Not only that, in the process of implementing green activities and environmental protection, the enterprise also creates trust from the workers and the surrounding local community.

However, according to Ms. Nguyen Thi Minh Hai, in the process of implementing the goal of greening and sustainability, the enterprise also faces difficulties and challenges.

Firstly, investment capital for green development projects must be taken into consideration. For example, solar energy systems or wastewater treatment systems or systems using recycled materials all require large capital.

In addition, the technical level and technological capacity of workers are still limited, especially in new fields such as renewable energy, solar energy, wind power, which still need support from state agencies for training.

According to Mr. Le Xuan Thinh, textile and garment enterprises are currently facing many difficulties. In details, "we have policies but there are no guidelines and standards”.

For example, we have not yet established standards for what is green, so businesses are still confused about how to implement them," said Mr. Le Xuan Thinh.

According to Mr. Le Xuan Thinh, Vietnam governments are in the roadmap to implement international commitments such as new generation FTAs as well as the upcoming border carbon adjustment mechanism (CBAM) by 2026, which require businesses to proactively take countermeasures.

"Textile and garment businesses must clearly define a roadmap. First, determine the current status of the business, how to implement greening or determine how much energy is being used; how much clean water is being used, how much waste is being emitted; or how much carbon emissions are being emitted per product and what specific goals are being aimed at.

For example, in the next 5 years, we will cut 5% of energy or 20% of water usage, or recycle 50% of wastewater. Enterprises must determine a roadmap suitable to their conditions.

Dr. Nguyen Van Hoi, Director of the Institute for Strategy and Policy Research on Industry and Trade, said that it is necessary to build, perfect, amend and supplement mechanisms and policies related to encouraging enterprises to access production technology; attract investment in technology; boldly invest in the production of raw materials that Vietnam is currently importing to compensate and build a production chain; effectively implement mechanisms and policies to support workers...

State management agencies, the Industry and Trade sector and relevant agencies need to proactively negotiate and exchange directly with international partners to develop a set of appropriate criteria, standards or regulations, helping to guide businesses to access international markets more effectively.

At the same time, it is necessary to ensure the ability to access complete information, meeting the requirements of international partners on the entire production process from start to finish.