Textiles “find a way” to adapt to the circular economy

(BDO) Developing production in line with the circular economy requires a high level of environmental impact and social responsibility, which has been a major challenge for textile and garment enterprises. Therefore, textile and garment enterprises need support to maintain export growth.

Growth but still worries

Textiles and garments, a group with large export value of the province, are regaining growth momentum as some traditional customers place new production orders, many of which are in large quantities.

Manufactured at Binh Duong Garment Joint Stock Company

According to estimates from the Department of Industry and Trade, after a difficult year in 2023, the province's textile and garment exports have recovered well in 2024. Export turnover is estimated at 3,204.4 million USD, an increase of 15.1% over the same period in 2023.

According to Mr. Phan Thanh Duc, General Director of Binh Duong Garment Joint Stock Company: In 2024, exports will be more prosperous, partly because domestic enterprises have gradually met the rules of origin, proactively and flexibly in searching for raw materials. However, domestic textile and garment enterprises are facing new challenges from markets that require a circular economy approach according to 4 stages/phases of the product life cycle including: production, with special attention to the design stage; consumption; waste management, turning waste back into resources.

The problem is that to meet these regulations, businesses will have to invest in modern technology, change production processes, management processes, and increased investment costs can also increase product prices, affecting competitiveness.

Ms. Nguyen Thi Kim Nguyen, Head of Administration Department of Binh Duong Garment Joint Stock Company, said that greening production in the textile and garment industry is quite diverse and has been gradually transformed by this company, using rooftop solar power systems, replacing the use of natural materials...

However, when investing in green production, the cost of enterprises will increase significantly. According to calculations, just using green materials, the input price is 300% higher than traditional products. From there, products brought to the market have great price competition, causing difficulties for enterprises. This is also a significant obstacle for textile and garment enterprises on the path to greening, especially small and medium enterprises.

Produced at Panko company (Ben Cat city)

According to Ms. Phan Le Diem Trang, Director of International Garment Joint Stock Company (Ben Cat City): first of all, in terms of the market, Europe is thoroughly implementing regulations and standards related to green factors and environmental protection. If they do not meet the requirements, they will not be able to bring goods to the market, which forces businesses to transform. However, only large businesses with good financial capacity have made investments, while the rest are still a challenge for small and medium-sized businesses as many regulations have a very wide scope and are highly technical.

“ Sustainable development and greening means that enterprises must invest in infrastructure of factories that meet domestic standards and commitments of free trade agreements that Vietnam has signed; use natural products such as solar energy, invest in rooftop solar power. Finally, create chain linkages, join hands to meet the standards and requirements of global brands. All of the above factors are mandatory directions, but the prerequisite is that each business owner needs to be aware of the goal of sustainable development, greening, investing in factories, technology, renewable energy, environment... Along with that, enterprises must propagate to raise awareness of the management department and workers. Greening and sustainable development is the path that must be taken by the textile and garment industry. However, it must also be determined that this path is very difficult and the biggest challenge is financial resources". (Ms. Phan Le Diem Trang).

Need greening strategy

According to Ms. Phan Le Diem Trang, the textile industry needs to have specific strategies and policies for greening production. It is possible to build an environmental resource fund for businesses to borrow at 0% interest rate, or 1-2%/year to invest in greening.

This policy should be implemented as soon as possible, because the global rules of the game do not wait for anyone. Enterprises also want state management agencies to listen to the business community and find out what problems they need to solve and support.

Ms. Phan Thi Khanh Duyen, Deputy Director of the Department of Industry and Trade, said : One of the key tasks and breakthroughs in the development of Binh Duong province will be implemented in the planning period 2021-2030, with a vision to 2050, which has just been approved by the Prime Minister , is green development.

According to the plan, Binh Duong will focus on developing a green economy with green production, green consumption, green transportation, green infrastructure, green cities, etc. guided by science and technology, thereby creating an economy in harmony between people, nature and society.

It can be seen that currently, many enterprises in Binh Duong have been focusing on green production as an important competitive strategy. Enterprises proactively apply advanced technology, use renewable energy, and minimize waste to reduce greenhouse gas emissions and protect the environment.

These actions not only contribute to the province's sustainable development goals but also shape the future of industry in Binh Duong, aiming to build green-standard industrial parks and industrial clusters in the coming time.

Ms. Phan Thi Khanh Duyen, Deputy Director of the Department of Industry and Trade: "The province is implementing a project to relocate and convert functions for enterprises located outside industrial parks and clusters in southern localities. The industry and trade sector is also grasping the aspirations of enterprises, guiding and supporting member enterprises of the association in implementing relocation, conversion of functions, and green and sustainable production."

Tieu My - Cam Tu

Source: https://baobinhduong.vn/det-may-tim-duong-thich-ung-voi-kinh-te-tuan-hoan-a337452.html