Vietnamese textile enterprises are working hard to adapt to the new requirements of the international market for traceability of raw materials to their origin. According to experts in the industry, many companies in Vietnam are currently facing the dilemma of high traceability requirements for many raw materials.
If a Vietnamese enterprise targets a market that has signed a Free Trade Agreement (FTA) with Vietnam as its main export target, it must ensure that the raw materials for manufacturing products comply with the FTA environmental protection requirements of the importing country regulations.
Vietnam’s textile industry is currently cooperating with the Ministry of Industry and Commerce to build industrial zones with wastewater treatment systems to protect the environment.
Vietnamese textile companies, especially original design manufacturers (ODMs for short), are responsible for directly developing products, purchasing raw materials and manufacturing products, and selling products to other brands Manufacturers) should carefully study the origin traceability rules and standards of Vietnam and importing countries.
VoManh Hung, president of the Vietnam Cotton Council International (CCI), said that cotton traceability is an issue that companies must consider when introducing products to the world. Currently, many brands require that all raw materials of their products must be made of sustainable cotton by 2030.
Truong Van Cam, vice president of the Vietnam Textile and Apparel Association (VITAS), pointed out that if the Vietnamese textile industry wants to move towards sustainable development, companies need to invest in sustainable development on their own Only by developing the system can economic benefits be generated.
The textile industry has made a significant contribution to Vietnam’s economic growth and exports. In the first half of 2022, the export value of the textile industry reached US$22 billion, an annual increase of 23%. The textile industry is one of the important pillars of Vietnam’s manufacturing industry, accounting for 12-16% of total exports and creating many employment opportunities.
On the other hand, digital transformation plays a key role in improving the competitiveness of textile and garment enterprises. Nguyen Thi Tuyet Mai, deputy secretary-general of VITAS, said that more and more foreign textile and garment companies are committed to green production, which poses a huge challenge to the Vietnamese textile industry. The main reason is that Vietnamese companies also need to meet the requirements of origin and domestic raw materials. Transparency requirements related to material use, labor protection and environmental protection commitments.
Some Vietnamese experts also believe that digital transformation is crucial to improving corporate competitiveness and helping to meet customer demands for quality and transparency. Companies should consider investing in technologies such as artificial intelligence and automated production to increase production capabilities and train employees in technical skills. However, Deputy Secretary-General Nguyen said that 80% of Vietnamese textile companies are small and medium-sized, so the funds required for digital transformation and green production are quite limited.
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