EU Green Deal and Vietnam's textile exports: Recommendations for businesses to adapt

21/12/2023    6

Although the majority of related mandatory green policies are currently in draft form, not yet officially approved and effective, demands from the EU consumers for green textile products are a clear reality. Moreover, in other Vietnam’s key textile export markets (such as United States, Japan, Korea, etc.), green consumption trends in the fashion sector are also very strong. Therefore, textiles are currently assumed to be among the export sectors facing the greatest pressure for green transition. 

Therefore, in addition to general recommendations on how to respond to green trends in green policies, legislations in the EU for all impacted sectors, textile exporters are recommended to develop specific green transition strategies from now on to meet practical market requirements (from customers and customers).

The strategy of each business may be very different, depending on overall business objectives, key export markets, available resources, etc., however, all need to include proactive actions to gradually green the production process, including:

- In terms of energy: Gradually switching to using renewable energy (especially solar power/rooftop solar) to reduce carbon emissions in the production process on the output product.

- In terms of raw materials: Searching for and developing suitable green raw material sources (especially new materials from some natural plants, recycled fiber materials), thereby gradually increasing the proportion of green raw materials in production, meeting consumer requirements; limiting the use of accessories made from plastic, metal materials, etc.

- In terms of the production process: Gradual technology transition to avoid waste of raw materials, save water, limit the use of chemicals in product processing, reduce waste, waste water, etc.

- In terms of packaging process: Increasing the use of environmentally friendly packaging materials, reducing unnecessary packaging, etc.

- In terms of the waste treatment process: Upgrading waste treatment technology from the production process to achieve higher treatment efficiency.

For most textile businesses engaging in processing and export, the transition of the production process to reduce emissions, limit pollution, and manufacture green products, etc. is an important factor in competition to attract orders. 

For businesses that have plans to engage more deeply in higher-value stages in the textile supply chain (such as design, self-supply of raw materials, etc.) or strategies to build their brand (completely self-sufficient through the production chain) to export to the EU and developed countries, the green transition is a compulsory requirement to be able to access and develop in these markets in the future.   

Source: Report "EU Green Deal and Vietnam's Exports - The case of the agricultural, food and textile industries" – Center for WTO and International Trade