EuroCham Vietnam Secretary General Marieke Van der Pijl outlines EU Green Deal impact on Vietnam’s textile industry at sustainability conference

On Thursday, 27 June, Ho Chi Minh City played host to the Sustainability and Transparency Conference 2024, an important event for Vietnam’s textile and garment industry. Organised by the Vietnam Textile and Apparel Association (VITAS) and the USA Cotton, the conference brought together industry leaders, policymakers, and sustainability experts to address the challenges and opportunities facing one of Vietnam’s key export sectors.

EuroCham Vietnam’s Secretary General, Marieke van der Pijl, delivered a comprehensive presentation on the European Union’s Green Deal and its far-reaching implications for Vietnam’s textile exporters. Her talk highlighted the EU’s ambitious goal of achieving climate neutrality by 2050 and the textile industry’s significant environmental impact as the fourth-largest contributor to climate change.

Ms. Van der Pijl outlined a series of upcoming EU regulations that will reshape the global textile trade landscape. These include the Circular Economy Action Plan (CEAP), the EU Strategy for Sustainable and Circular Textiles (EUSSCT), the Carbon Border Adjustment Mechanism (CBAM) and more. She emphasised that these initiatives aim to promote sustainability, transparency, and circularity throughout the textile value chain.

She added that the EU’s Green Deal presents a dual scenario for Vietnam’s textile industry. Although adapting to the new environmental standards may lead to higher production costs initially, it could also stimulate innovation and create a competitive edge in the global market in the long term.

Key points from her presentation included:

• Enhanced transparency requirements, including the introduction of a Digital Product Passport to track products’ environmental impact throughout their lifecycle.
• New labelling regulations to provide consumers with clear information on products’ sustainability credentials.
• The Green Claims and Greenwashing Directives, designed to combat misleading environmental claims and promote honest marketing practices.
• The Corporate Sustainability Due Diligence Directive (CSDDD), which will require larger companies to assess and mitigate their environmental and social impacts.
• The Carbon Border Adjustment Mechanism (CBAM), which could significantly affect the competitiveness of non-EU manufacturers by imposing carbon pricing on imports.

Ms. Van der Pijl also highlighted the EU’s vision for 2030, where all textile products in the EU market should be durable, repairable, recyclable, and produced with respect for social rights and the environment.

The presentation was met with keen interest from attendees. VITAS expressed enthusiasm about the support that the European Commission, alongside Vietnamese ministries, the EU delegation, and other stakeholders, will provide to help the industry meet these new requirements through events and capacity-building programs.

Other significant topics covered at the conference included:

• The role of US Cotton in promoting circularity
• Vietnam’s textile industry’s progress on sustainability, traceability, and circularity
• The performance of US Cotton in recycled blends
• The landscape of textile post-industrial waste recycling in Vietnam
• Strategies for compliance with the Uyghur Forced Labor Prevention Act
• Traceability and origin verification in the textile supply chain
• The conference underscored the global shift towards sustainable and transparent practices in the textile industry. For Vietnam, a major textile exporter, adapting to these changes will be crucial for maintaining and expanding its market share in the EU.

As the industry faces these new challenges, collaboration between government bodies, industry associations, and international partners will be key. EuroCham Vietnam reaffirms its commitment to supporting Vietnamese businesses in navigating these regulatory changes and seizing the opportunities presented by the global sustainability movement.