Green transformation of textile industry in Vietnam

Globally, the textile and apparel industry emits about 3.9 billion tons of CO2 per year, equivalent to 8-10 per cent of global emissions, consumes about 93 billion cubic meters of water, discharges 92 million tons of waste, and causes serious pollution, especially microplastics, due to the use of chemicals in the production and consumption process.

Vietnamese enterprises need to comply with strict standards from major markets such as the EU and the US, and learn from Bangladesh's experience in green transformation, investing in clean technology, sustainable supply chain management, and developing green factories to improve competitiveness and contribute to Vietnam's sustainable development.

Environmental impact of the textile industry

The textile and apparel industry is one of the largest and most environmentally impactful industries globally, surpassed only by the food, construction and transport sectors. The production of a garment involves a complex supply chain that includes raw material extraction, yarn production and finished product. This process generates large amounts of emissions, waste and water and other resource consumption, which has a serious impact on the environment and poses a significant sustainability challenge.

As mentioned above, the global textile and footwear industry emits approximately 3.9 billion tons of CO2 equivalent per year, accounting for 8 to 10 per cent of total global CO2 emissions. These emissions continue to rise as global production of textiles and footwear doubled between 2000 and 2015 to around 100 billion items per year, and is estimated to increase by another 63 per cent to 154 million tons of waste by 2030. This puts increasing pressure on the environment as the production process is highly energy-intensive and emits significant amounts of greenhouse gases. Textile factories, especially in developing countries such as China, India and Bangladesh, often rely heavily on coal and gas for energy, which is a major polluter as these countries are still in the process of transitioning to cleaner energy sources.

The global textile industry consumes about 93 billion cubic meters of water each year, enough to provide water for 5 million people. This represents about 4 per cent of the world's total freshwater withdrawals. It takes 2,700 liters of water to produce a single cotton T-shirt, equivalent to one person's drinking needs for 2.5 years. The production of yarn and the finishing of fabrics, which often involve dyes and processing chemicals, are estimated to be responsible for 20 per cent of the world's total freshwater pollution.

Every year, the global fashion industry produces around 92 million tons of textile waste, of which 87 per cent is incinerated or landfilled, with only a very small proportion (1 per cent) being recycled into new clothing. The fibres used to make clothing are 68 per cent fossil fuel-based, contributing to the depletion of non-renewable resources and increasing CO2 emissions into the atmosphere.

On average, each European consumes 26 kg of textiles per year, throwing away around 11 kg, more than 87 per cent of which is incinerated or landfilled. A Dutch household does an average of 220 loads of laundry per year, using between 105 and 195 kWh of energy and 15,000 litres of water. A large amount of microplastics are also released from polyester clothing in each wash, with one wash containing up to 700,000 microplastic fibres, posing a serious threat to aquatic ecosystems and the food chain. Textile products consumed in the EU generate 121 million tons of greenhouse gas emissions, equivalent to 270 kg CO2 per person.

The trend of transforming to green textiles

The trend of switching to green textiles is becoming more and more popular in the context of global consumers paying more attention to environmentally friendly and sustainable products. The textile and garment industry is witnessing a strong transformation, especially the global growth of green textile products, meeting the environmental protection needs of consumers, creating attractive export opportunities for textile and garment enterprises in Vietnam.

The Sustainable Apparel Coalition (SAC) has set a target of reducing emissions by 45 per cent by 2030 to help limit global warming to 1.5°C (2.7°F). Major markets such as the European Union (EU) and the United States have increasing demand for green textiles, which are promising destinations for Vietnamese textile and garment products. Vietnamese textile and garment enterprises need to master and comply with strict environmental and product quality standards of importing countries. These standards are designed to protect consumer health, worker safety and the environment, while ensuring that products meet high standards of sustainability, safety and quality.

In the EU, green textile export requirements include the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulation, which requires businesses to ensure that chemicals used in the manufacturing process are not harmful to humans and the environment. OEKO-TEX certification is highly valued by importers because it guarantees that products are free of toxic substances and are produced in an environmentally friendly manner. For specialized textile products such as personal protective equipment, CE marking is a mandatory requirement to confirm that the product complies with safety standards.

In the United States, textile standards are also very strict. The Textile Product Identification Act requires imported products to clearly state the fiber composition, country of origin, and instructions for use. The Federal Trade Commission (FTC) regulations on flame retardancy and instructions for use are also mandatory requirements that businesses need to comply with to ensure consumer health and maintain product quality.

Exporting green textiles to markets such as the EU and the US not only meets the consumption needs of people but also brings great economic benefits to Vietnamese enterprises. According to Nielsen's 2020 Global Sustainability Report, more than 70 per cent of consumers in the EU and the US are willing to pay more for sustainable products for environmental protection reasons.

Moreover, green textile products often have higher value due to their sustainability and quality, helping businesses improve profit margins and enhance brand image. The EU and US governments also have incentives and subsidies for green textile enterprises, encouraging companies to invest in sustainable production and minimize negative impacts on the environment.

The transition to green textiles poses many challenges, especially for small and medium-sized enterprises. Strict environmental and safety standards require businesses to invest heavily in product research and development as well as certification processes, putting financial pressure on them. Increasingly fierce competition in the green textile market forces businesses to constantly innovate and improve their products to maintain their position.

Sustainable and transparent supply chain management is also a significant challenge, especially when the supply network is complex and distributed across many countries, requiring businesses to have effective supply chain management solutions and a strong commitment to minimizing environmental impacts.

Applying the world's green transformation experience to Vietnam

Vietnam can learn and apply Bangladesh’s green transformation experience in the textile and garment sector to achieve sustainable development and enhance international competitiveness. Bangladesh, the world’s second largest garment exporter, has made significant progress in “environmentally friendly” production. To reduce its environmental impact, Bangladesh has developed a carbon emission reduction strategy, with the goal of cutting emissions by 45 per cent by 2030, helping to limit global warming to below 1.5°C.

Since 2009, Bangladeshi garment enterprises have led the world, establishing 202 factories that have achieved the United States Green Building Council (USGBC) green building certification (LEED). These factories not only comply with environmental standards, but also optimize production processes to save energy and minimize carbon emissions. For example, Vintage Denim Studio, the first LEED Platinum certified factory in 2009, has reduced energy costs by 46 per cent, carbon emissions by 45 per cent, and water costs by 53 per cent by applying advanced technologies and using electricity from renewable energy. These are measures that Vietnam can study and apply, as the cost of establishing a green factory is 25-30 per cent higher than that of a traditional factory, but the long-term benefits are undeniable.

In Vietnam, the trend of building green factories has begun to gain attention, with 69 factories meeting green building standards. However, compared to Bangladesh, this number is still quite modest. Learning from Bangladesh, Vietnam can set a goal of increasing the number of green factories by promoting policies to encourage businesses to invest in environmentally friendly production, while providing financial support to reduce the cost burden for businesses. Applying energy-saving technologies such as LED bulbs, using solar panels or improving wastewater treatment systems will help reduce operating costs and limit negative impacts on the environment.

Another important factor that Vietnam can adopt is sustainable supply chain management and increased transparency. Bangladeshi companies have implemented strict audit and compliance procedures for fire safety, electrical safety and structural safety to meet environmental standards and minimize resource waste. As a result, their products can easily access demanding markets such as the EU and the US, where environmental standards are increasingly stringent.

If Vietnam adopts these strategies, the textile and garment industry can not only reduce environmental pressure but also take advantage of opportunities to export to green markets, enhance the value of the national brand and attract foreign investment. This requires a long-term vision and strong investment from both businesses and the state to turn Vietnam into a green textile and garment production center in the world. The transition to a green production model will contribute significantly to Vietnam's sustainable development goals, in line with global trends and meet the expectations of international partners in minimizing environmental impacts.

Source: VnEconomy