Garments and textiles sector hoping to exploit 'green' recovery

Hoang Ve Dung, chairman of Duc Giang Corporation (Dugarco), a major apparel firm in northern Vietnam, revealed that the company is expediting a range of initiatives to innovate production, such as taking measures to reduce energy costs by 10 per cent, water by 20 per cent, and materials and accessories by 5-10 per cent.

Efforts are also being geared towards minimising the use of paper at meetings, along with phasing out the use of plastic bottles and packaging. These efforts are part of the journey to reducing the ‘carbon footprint’ at Dugarco.

Currently, most plants in Dugarco’s system are equipped with rooftop solar battery systems to provide between 20-30 per cent of total energy use for the entire production process.

In addition, the company has also made efforts to convert from coal-fired boilers to electric-powered boilers to reduce emissions while helping to save on cost.

Vu Duc Giang, chairman of Vietnam Textile Apparel Association (Vitas) stated that many local businesses meet 'greening' standards sufficiently to compete head-on with their overseas counterparts.

“Later this year, Vitas will invite foreign embassies, consulates and businesses to visit one of our members based in Thai Binh province and who employs nearly 20,000 workers. The plant campus looks like a lush forest with a well-planned working environment for sustainable development,” said Giang.

Many businesses in the sector are reportedly finalising greening standards to ensure sustainable production, turning out products which are recyclable.

Most firms have invested in solar power systems and rain-water gathering, to be reused after being treated.

At Vietnam International Sourcing 2023, hosted by the Ministry of Industry and Trade and Ho Chi Minh City People’s Committee in September, Avaneesh Gupta, senior vice president of US retail giant Walmart, expressed his intention to build relationships here and entice Vietnamese small and medium-sized enterprises (SMEs) to join its global e-commerce network.

Gupta spoke of requirements for Vietnamese firms to join Walmart’s global network, including having, "A high-quality supply capacity, financial stability, and compliance with sustainable development and environmental standards."

In this regard, Hoang Ve Dung from Dugarco noted that the requirements for greening and sustainable development might not create concerns for large firms, but they represent a real challenge for SMEs.

“Despite companies gearing towards green production and supply chain systems, research and development of green materials in Vietnam remains modest. The fabrics made from eco-friendly materials often need to be treated using expensive, cutting-edge technology and investment into renewable energy and wastewater treatment could push up costs, often going beyond the financial capacity of smaller firms,” said Dung.

Textile apparel sector losing advantage in price competition Many producers in the textile apparel sector are on tenterhooks as export orders are increasingly shifting to other countries like Bangladesh or India for more favourable pricing.

Real estate rebound anticipated Real estate developers are scaling up efforts to bolster sales in a bid to offset the shortfall earlier in the year.

Roadblocks remain in apparel production recycling The textile and apparel sector is making efforts to recycle input materials to reduce waste while preserving natural resources, although barriers persist.