Illustrative image (Source: VNA) HCM City (VNS/VNA) - The textile and garment industry, aimingto take advantage of free trade agreements (FTAs) with a focus on greenmanufacturing, is upbeat about earning 60 billion USD from exports by2025.
Last year, the industry earned 36 billion USD inexports, up 16 percent year-on-year, making the country one of the world’sthree biggest exporters of textiles and apparel, according to the VietnamTextile and Apparel Association (VITAS).
Vu Duc Giang, chairman of VITAS, said theassociation this year set a target of 40 billion USD in exports, up 11 percentyear-on-year.
Speaking at the 2019 Global Textile and ApparelSupply Chain Conference held last week in HCM City, Giang said theindustry was expected to enjoy a trade surplus of 20 billion USD, and employ2.85 million workers.
Textile enterprises have seen positive signs fororders this year. “Many businesses have already received orders for the firstsix months of 2019 and even for the entire year,” he said.
Because of increased capital flow to theindustry, the country has gradually completed a textile and apparel supplychain, while the upcoming enforcement of new FTAs will also be a good factorfor the industry this year.
This year, the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) is expected to boost the development of many industries of Vietnam,including the textile and apparel industry.
The industry is also expecting more orders toshift from China to Vietnam due to the ongoing US-China trade war.
Vietnam is participating in 16 FTAs. Ten out of12 signed agreements have been enforced, including the ASEAN Trade in GoodsAgreement, the ASEAN-China FTA and the ASEAN-Korea FTA, while the tworemaining, the CPTPP and the ASEAN-Hong Kong FTA, have not yet come into force.
Participation in various FTAs could help Vietnamese enterprises have morechoices in exporting their products, but it also brings challenges to theindustry, according to VITAS.
The FTAs that Vietnam has signed all have environmental barriers with highergreen standards, which require enterprises to improve not only product qualitybut also production processes.
If enterprises fail to do this, they will face arisk of having orders stopped or rejected, especially orders from major internationalgarment brands.
Most Vietnamese textile and apparel enterprisesdo outsourcing, so they rely heavily on orders from other countries.
Customers worldwide are now more environmentallyconscious, which has forced global brands to improve operations to includehigher environmental and social standards.
Giang recommended that Vietnam should continueits efforts to ensure environmental protection in manufacturing to become a“sustainable supplier of choice” of textile and apparel.
The country has committed to fully implementing17 goals of the 2030 Agenda for Sustainable Developmentto ensure economic, social and environmental benefits, according toGiang.
“Implementing a shared responsibility to respondto the 21st century's biggest global challenge, Vietnam and the internationalcommunity ratified the Paris Agreement on climate change in 2015. And thetextile industry is part of that commitment,” he said.
Nguyen Thi Tuyet Mai, chief representative ofVITAS office in HCM City, said that many provinces established their ownindustrial parks for textile and garment activities.
The industrial zones have invested and put intooperation wastewater treatment systems, helping businesses complete theirresponsibility to protect the environment during production.
VITAS set up an Environment Committee threeyears ago and has taken part in an action programme for theGreen the Textile and Apparel Industry group.
In addition, last year VITAS and the World WideFund (WWF) for Nature launched a project to green the textile industry. Theproject aims to encourage players in the domestic textile sector to promotebetter river basin governance, water quality improvement and sustainable energyuse.
Marc Goichot from WWF-Greater Mekong said thatgreening the textile sector in Vietnam would help achieve its wider goal ofaddressing river governance and energy sustainability, which are top globalenvironmental concerns.
With 6,000 factories nationwide, employing somethree million people, the textile and apparel industry contributes 15 percentof exports. The industry is, however, causing a serious environmental impact.
Intensive water extraction, use and discharge ofwastewater, and high-energy consumption for water heating and steam generationcaused by the industry can seriously affect water resources and greenhouse gasemissions.
As the industry continues to expand, improvementin practice will be required to reduce the impact.
The UN predicts there will be a 40 percent watershortage globally by 2030.-VNS/VNA
Last year, the industry earned 36 billion USD inexports, up 16 percent year-on-year, making the country one of the world’sthree biggest exporters of textiles and apparel, according to the VietnamTextile and Apparel Association (VITAS).
Vu Duc Giang, chairman of VITAS, said theassociation this year set a target of 40 billion USD in exports, up 11 percentyear-on-year.
Speaking at the 2019 Global Textile and ApparelSupply Chain Conference held last week in HCM City, Giang said theindustry was expected to enjoy a trade surplus of 20 billion USD, and employ2.85 million workers.
Textile enterprises have seen positive signs fororders this year. “Many businesses have already received orders for the firstsix months of 2019 and even for the entire year,” he said.
Because of increased capital flow to theindustry, the country has gradually completed a textile and apparel supplychain, while the upcoming enforcement of new FTAs will also be a good factorfor the industry this year.
This year, the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) is expected to boost the development of many industries of Vietnam,including the textile and apparel industry.
The industry is also expecting more orders toshift from China to Vietnam due to the ongoing US-China trade war.
Vietnam is participating in 16 FTAs. Ten out of12 signed agreements have been enforced, including the ASEAN Trade in GoodsAgreement, the ASEAN-China FTA and the ASEAN-Korea FTA, while the tworemaining, the CPTPP and the ASEAN-Hong Kong FTA, have not yet come into force.
Participation in various FTAs could help Vietnamese enterprises have morechoices in exporting their products, but it also brings challenges to theindustry, according to VITAS.
The FTAs that Vietnam has signed all have environmental barriers with highergreen standards, which require enterprises to improve not only product qualitybut also production processes.
If enterprises fail to do this, they will face arisk of having orders stopped or rejected, especially orders from major internationalgarment brands.
Most Vietnamese textile and apparel enterprisesdo outsourcing, so they rely heavily on orders from other countries.
Customers worldwide are now more environmentallyconscious, which has forced global brands to improve operations to includehigher environmental and social standards.
Giang recommended that Vietnam should continueits efforts to ensure environmental protection in manufacturing to become a“sustainable supplier of choice” of textile and apparel.
The country has committed to fully implementing17 goals of the 2030 Agenda for Sustainable Developmentto ensure economic, social and environmental benefits, according toGiang.
“Implementing a shared responsibility to respondto the 21st century's biggest global challenge, Vietnam and the internationalcommunity ratified the Paris Agreement on climate change in 2015. And thetextile industry is part of that commitment,” he said.
Nguyen Thi Tuyet Mai, chief representative ofVITAS office in HCM City, said that many provinces established their ownindustrial parks for textile and garment activities.
The industrial zones have invested and put intooperation wastewater treatment systems, helping businesses complete theirresponsibility to protect the environment during production.
VITAS set up an Environment Committee threeyears ago and has taken part in an action programme for theGreen the Textile and Apparel Industry group.
In addition, last year VITAS and the World WideFund (WWF) for Nature launched a project to green the textile industry. Theproject aims to encourage players in the domestic textile sector to promotebetter river basin governance, water quality improvement and sustainable energyuse.
Marc Goichot from WWF-Greater Mekong said thatgreening the textile sector in Vietnam would help achieve its wider goal ofaddressing river governance and energy sustainability, which are top globalenvironmental concerns.
With 6,000 factories nationwide, employing somethree million people, the textile and apparel industry contributes 15 percentof exports. The industry is, however, causing a serious environmental impact.
Intensive water extraction, use and discharge ofwastewater, and high-energy consumption for water heating and steam generationcaused by the industry can seriously affect water resources and greenhouse gasemissions.
As the industry continues to expand, improvementin practice will be required to reduce the impact.
The UN predicts there will be a 40 percent watershortage globally by 2030.-VNS/VNA
VNA
