Vietnam’s textile and garment industry has grown rapidly, with exports rising from $1.96 billion in 2001 to $27 billion in 2015 and $40.4 billion in 2021. Despite making a major contribution to the economy, the industry is among the most polluting. Promoting a circular economy is therefore considered a key strategy for the industry to deeply participate in global value chains.
Over 70 per cent of enterprises in the textile and garment industry are of small and medium-size, making it difficult to invest in green projects and apply new technologies for sustainable development. Meanwhile, credit in the industry accounts for just 1.5 per cent of total outstanding loans in the economy. According to the Foreign Investment Agency at the Ministry of Planning and Investment, the textile and garment industry is a key exporter, accounting for 12-16 per cent of the country’s total export turnover.
According to the Vietnam Textile and Apparel Association (VITAS), textile and garment exports reached $22.3 billion in the first half of 2022, up 17.7 per cent year-on-year. Exports in the second half are expected to reach $20-21 billion, bringing the total to $42-43 billion for the year as a whole.