What are footwear businesses preparing to participate in sustainable supply chains?

Sustainable development in the footwear industry is becoming an essential requirement due to increasing awareness of environmental issues and consumer demand for eco-friendly products.

This shows that supply chains have changed, and the challenge is what Vietnamese export businesses need to prepare for to comply with new regulations and participate in sustainable supply chains? How can carbon emissions in footwear factories be minimized to move towards zero-waste production, meeting ESG requirements and business sustainability reporting standards?

To support businesses in updating information and guidance, and effectively implementing new policies, the Vietnam Leather and Footwear Association (Lefaso), in collaboration with IDH, organized a workshop entitled "Training on updating information on new EU policies for leather and footwear products imported into the EU market".

Workshop “Training on updated information regarding new EU policies for leather and footwear products imported into the EU market”

In her opening remarks at the workshop, Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of Lefaso, stated: Trade policies in major export markets for the footwear industry are changing rapidly. While previously sustainable development activities were primarily initiated and encouraged by customers, today they are codified through policies issued by the governments of major footwear importing countries such as the US and the EU.

“ We understand that this is a major challenge for footwear and handbag manufacturers today. Therefore, today's workshop is organized to share knowledge and practical experience to help businesses update information, learn, and better prepare for the next phase, ” said Ms. Phan Thi Thanh Xuan.

Ms. Nguyen Thi Minh Thuy, Senior Program Manager for Sustainable Development at IDH, also shared: IDH is a Dutch organization operating in over 40 countries with the mission of supporting businesses in Vietnam's strong export sectors to achieve higher export efficiency. IDH is currently collaborating with the Vietnam Textile and Garment Association and Lefaso to prepare for many useful activities.

“ IDH is committed, both now and in the medium to long term, to providing specific, long-term, and strategic technical support to the footwear industry ,” an IDH representative affirmed.

Speaking at the workshop, Gerwin Leppink, an expert from the Wrap organization, stated: Today, to successfully export to the United States and the EU, compliance with customs regulations, environmental protection, and social responsibility is mandatory. This impacts both buyers (distributors in the importing country) and suppliers (exporting businesses). Buyers must demonstrate responsible sourcing and compliance with new laws. Suppliers are responsible to distributors for proving that their factories are safe, and that their workers are treated in accordance with international standards, local laws, and buyer requirements.

“ Suppliers can lose orders if they don’t comply with regulations, and buyers can have their goods seized or shipments rejected by authorities if there are allegations of worker abuse ,” said Gerwin Leppink.

Based on this reality, Gerwin Leppink recommends that competition has shifted from individual companies to the entire supply chain, requiring buyers and suppliers to work together to comply with laws and regulations that customers expect. He also emphasizes that competition lies in value, not in being the cheapest.

Representatives from the Wrap organization also advised manufacturing and exporting businesses on the buyer's side to focus more on supply chain risk management and resilience. They are also shifting to bilateral and multilateral sourcing strategies; while prioritizing sustainability, compliance, transparency, traceability, and supply chain flexibility.

Also at the workshop, many topics related to sustainable development were discussed in depth with businesses in the footwear industry, such as: the regulations for assessing businesses in the supply chain of the Federal Republic of Germany; best practices in human rights and environmental protection from Adidas; solutions to reduce carbon emissions in the production process of footwear factories towards zero-waste production…

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