Vietnamese Textile and Garment Firms Increase Investment in Green Production

Vietnamese textile and garment firms are investing tens of billions of Vietnamese dong to upgrade energy systems and reduce carbon emissions from production. Tổng Công ty May 10 has converted about 90% of its boiler system from coal or diesel to biomass pellets. It has also installed rooftop solar systems at its May Bỉm Sơn and Veston Hưng Hà factories to meet part of their electricity needs.

The company is also adjusting its raw material supply chain. The share of recycled fibers and natural fibers, such as bamboo and coffee fibers, in its products has risen to between 30% and 50%. Changes to energy use and raw materials are central to its efforts to make production greener.

Cost remains a major barrier to the transition. Investment in green technology is about 20% to 30% higher than in conventional technology, while product prices do not always rise accordingly. Europe's carbon border adjustment mechanism and supply chain scrutiny requirements are also prompting firms to establish more transparent and accurate data reporting systems. Textile and garment firms are therefore training employees in international ESG reporting standards and seeking domestic suppliers to cut transport costs and increase the share of locally sourced raw materials.

New factories operated by Tổng Công ty May 10 have obtained LEED green building certification in recent years. Related measures have helped the company save 25% to 30% in operating costs and pursue orders from international brands. As customers pay more attention to sustainable fashion, investment in green production is affecting Vietnamese textile and garment firms' ability to enter global supply chains.

Source: VietVance