According to the General Statistics Office, in the first four months of 2023, exports of textiles and garments only reached US$9.5 billion, down 19.3% over the same period last year. Facing this decline, many businesses have made stronger changes than before.
According to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, to adapt to the transition from highly specialized production to the production of small, competitive items, businesses have reorganized their production lines, adjust technology, and business models develop more diversified. Especially, we must aim to produce environmentally friendly textiles.
Recently, Hansae Group (Korea) and Hanoi Textile and Garment Corporation (Hanosimex) cooperated to produce recycled textiles in Vietnam. The two sides proposed to process the recycled fiber into yarn and fabric and all products produced by the Hanosimex factory would be exported. Industry experts predict that demand for recycled fabrics from the EU will reach 4,000 tons.
Specter garment factory also completed the construction process in An Giang for 17 million USD. The plant is built to the highest environmental standards and has been awarded the LEED gold certification for design excellence in energy and environmental management. The plant also uses partial solar energy to cut about 1,600 tons of CO2 emissions annually.
In that trend, some companies have set up their own research and business development centers to ensure the production of environmentally friendly fashion products.
Mr. Pham Van Viet, Chairman of the Board of Directors of Viet Thang Jean Limited Liability Company, said that traditional textile products exported to the European market cost about 11 USD/piece, while the products use raw materials. Organic materials, or recycled materials, that meet sustainable production criteria can be sold for $23 each. However, to increase the value of such products, enterprises must be transparent about the origin of the supply chain, and ready for trace requests from brands and partners.
Also accepting opportunities from sustainable production, Trung Quy Textile and Garment Company Limited in Long An has exported 2 containers of organic fiber-based fabrics to its American partner. Mr. Tran Van Quy, General Director of the Company, said that traditional products have not yet recovered their orders, but some partners have placed new orders for fabrics of organic origin and recycled materials.
Realizing that the market demand bodes well for the new product line, the Company has developed 20 other fabrics of organic origin that are ready to be produced as customer demand increases.
“With this signal, we can grow 35-40% this year. The advantage is that the factory is invested with advanced German technology, so it can convert 100% of capacity, producing about 300 tons of organic lychee per month at the request of the brand,” shared Mr. Tran Van Quy.