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The textile industry strives to "green" production, "hunt" orders

22/03/2022 08:19 PM
Currently, many textile and garment enterprises have orders until the third quarter of 2022, but it is not possible to predict the market after that, because it depends a lot on the pandemic situation.
Currently, many textile and garment enterprises have orders until the third quarter of 2022, but it is not possible to predict the market after that, because it depends a lot on the pandemic situation.


Textile enterprises started production right from the beginning of the year.

In 2022, the forecast of the Covid-19 epidemic situation in the world and Vietnam is still very complicated and unpredictable. However, a positive signal is that major markets such as the US and EU have reopened, especially Vietnam, which has had a safe, flexible adaptation and effective control of the Covid-19 pandemic, economic recovery and development under Resolution No. 128/NQ-CP.

The Vietnam Textile and Apparel Association (Vitas) sets targets for 2022 according to 3 scenarios. With the most optimistic scenario, the epidemic situation is basically under control, the total export turnover of about 42-43.5 billion USD that the industry has proposed will soon come true. Along with that, Vietnam's implementation of a series of new-generation free trade agreements effectively promotes a big boost for the textile industry and the economy.

According to Mr. Truong Van Cam, Vice Chairman & General Secretary of Vitas, the vital point for textile and garment enterprises is orders and a large workforce against the Covid-19 pandemic. Enterprises that want employees to stick together must take care of their living, jobs, and welfare regimes. At the moment, many textile and garment enterprises have orders until the third quarter of 2022, but it is not possible to predict the market after that because it depends a lot on the pandemic situation. 


Moreover, the difficulty of the textile industry is the input materials, especially fabric, textile dyeing. Some localities still feel that the textile industry causes pollution, so they are not interested in projects to develop this field. The textile and garment industry is coordinating with the Ministry of Industry and Trade to build large textile and garment industrial parks with wastewater treatment systems, environmental protection... to partially meet the source of raw materials for the industry.

“The textile and garment industry develops very quickly, but it is still weak in input materials, so it is hoped that the Government will soon approve the "Strategy to develop Vietnam's textile and footwear industry until 2030, with a vision to 2035" so that the industry can can be self-sufficient in raw materials, meeting the rules of origin of the Free Trade Agreements. In addition to the efforts of enterprises, the textile and garment industry hopes that the State will have specific support mechanisms and policies to encourage the development of supporting industries, including master planning allocation of investment attraction. , export promotion funds, financial support, interest rates, exchange rates... to help businesses improve their competitiveness in the international market," suggested Mr. Cam.

Efforts to "go green"

Another notable issue of the majority of enterprises in the supply chain of the textile and garment industry, which is processed for major brands in the world, has received the requirements of "greening" in production, such as implementing social responsibility. These are also criteria to evaluate competitiveness when participating in international supply chains. Still, they are also the most significant barriers for businesses today because they have to make significant investments in machinery and technology.

Mr. Than Duc Viet, General Director of Garco 10, said that with the "greening" program, on the one hand, businesses always have to follow the trends of the world. On the other hand, enterprises are also pressured by the import customers themselves, when they ask for standards on green factories, working environment for employees, reduction of polluting emissions, and reduction of hazardous wastes...

“Currently, all of Garco 10's factories for export can meet the requirements of customers. However, with some new certifications, May 10 is still struggling. In addition to the green factory story, another factor to mention is green materials. Currently, many customers ask that Garco 10 use materials of natural origin, recycled materials, not to exploit many resources and after only 5-10 years of self-degradation after use. That is the goal that Garco 10 focuses on implementing", said Mr. Viet.

"Greening" the textile industry is a global trend that businesses must implement to achieve sustainable development goals and increase exports to major markets.
The Vietnam Textile and Apparel Association also set a goal of "going green" with a plan by 2023, reducing energy consumption by 15%, water consumption by 20%; By 2030, transforming the "green" of Vietnam's textile and garment industry, and at the same time building 30 international brands.
More specifically, about "greening" the textile industry, Mr. Truong Van Cam said, brands evaluate sustainable development based on the compliance level of enterprises on the environment, society, responsibility to people, global workers and consumers. In the new-generation FTAs, there are also commitments on environmental protection and low emissions. This is both a challenge and an opportunity for enterprises to invest in modern production technology, increase the competitiveness of their products when exporting, and increase their reputation and brand among consumers.

"Greening" the textile and garment industry is a global trend that businesses must implement to achieve sustainable development goals and increase exports to major markets that have signed FTAs. Recognizing the problem of "greening" very early and with efforts to "go green" for many years, Vietnam's textile and garment industry is enlisting support from many international organizations to implement this strategy with various activities, specific actions such as training and supporting environmental remediation solutions...", Mr. Cam said.

A series of internal challenges

According to a recent analysis from the Center for Industry and Trade Information (Ministry of Industry and Trade), in 2021, the textile and garment industry finished with $39 billion in export turnover, up 11.2% over the previous year. However, Vietnam's textile and garment industry has not improved in terms of market share.

Among the main export markets of Vietnam's textile and garment in 2021, besides the US, there is a recovery equal to 2019 with about 100 billion USD in garment import turnover, the remaining major markets of Vietnam's textile and garment are likely to recover resilience is low, even lower than 2020. This will continue to be a challenge for the industry in 2022.

Besides, domestic textile and garment enterprises will face a series of internal challenges such as transportation costs 3 times higher than the average level of the past 5 years; the disadvantage of exchange rate makes Vietnam's textile and garment less competitive against rivals; Labor imbalance, enterprises in the South still lack labor, while this region accounts for about 40% of the total export turnover of the whole industry.

Although the textile and garment market is thriving, many competitors of Vietnam's textile and garment such as China, Bangladesh, India ... also accelerated and made many efforts to make up for the shortfall in turnover in 2021.

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Head Office : 15th Floor, Office Building, C1 Thanh Cong Building, Ba Dinh District, Hanoi.
Phone : 84-24-39349608 / 39361167 / 39364134
Ho Chi Minh City Branch : LP-05.OT19 & LP-05.OT20,
Landmark Plus Building, Vinhome Central Park,
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Phone : 84-28-22411485 - Fax: 84-28-38233465
Email : info@vietnamtextile.org.vn

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