On December 14th, VICO Logistics proudly joined the 25th Anniversary Celebration of the Vietnam Textile and Apparel Association (VITAS) and its 2024 Annual Summary in Quang Nam province. This significant event commemorated the remarkable achievements of garment factories in Vietnam and emphasized the industry’s potential for sustainable growth and global leadership.
Vietnam’s Garment Factories: 25 Years of Growth
Over the past quarter-century, garment factories in Vietnam have undergone an extraordinary transformation. According to Mr. Vu Duc Giang, Chairman of VITAS, the industry’s success is rooted in its resilience, innovation, and ability to adapt to shifting global trends. By integrating artificial intelligence, embracing digitalization, and prioritizing sustainability, Vietnam’s textile sector is ready to lead the global market.
In 2024, the export turnover of garment factories in Vietnam is projected to hit USD 44 billion, representing an 11.26% increase from 2023. At the same time, import turnover is expected to rise to USD 25 billion, up by 14.79%. These figures reflect a trade surplus of USD 19 billion, showcasing the industry’s continued upward trajectory and importance in the global textile supply chain.
Key Insights from the Event: Circular Textile Development Initiative
A highlight of the VITAS celebration was the Circular Textile Development initiative, which aims to elevate the sustainability practices of garment factories in Vietnam. This initiative introduced several key measures:
- Controlled Imports of Recycled Materials: Supporting sustainable production by ensuring environmentally responsible sourcing.
- National Resource Monitoring: Establishing a system to optimize the use of raw materials and reduce waste.
- Circular Textile Regulations: Driving the adoption of production models that prioritize sustainability and long-term growth.
These strategies underscore Vietnam’s commitment to aligning its garment factories with global environmental standards and enhancing competitiveness in international markets.
EU’s Corporate Sustainability Due Diligence Directive (CSDDD): A Global Context
The event also shed light on the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), a groundbreaking regulation set to impact garment factories in Vietnam significantly. As suppliers to European markets, Vietnamese manufacturers must adapt to the requirements of this directive.
>> Latest Updates on Vietnam On-Spot Import-Export Regulations
CSDDD Timeline and Requirements
- 2022: Directive proposed by the EU Commission.
- 2023: Provisional agreement between the EU Parliament and EU Council.
- March 2024: Final text negotiated.
- April 2024: Formal adoption by the EU Parliament.
- 2024-2026: Member states integrate the directive into their laws.
- 2027: Applies to companies with 5,000+ employees and €1.5 billion turnover.
- 2027-2029: Gradually expands to companies with 2,000+ employees and €450 million turnover.
CSDDD Compliance for Garment Factories in Vietnam
- Risk-Based Due Diligence: Integrating risk assessments into supply chain management.
- Environmental Responsibility: Developing climate transition plans to address global warming.
- Transparency: Establishing public reporting mechanisms on due diligence efforts.
- Regulatory and Civil Liability: Companies face penalties for non-compliance, including fines and civil damages.
Vietnamese garment factories must prepare for these challenges, ensuring that they meet the high standards expected by European buyers.
VICO Logistics: Supporting Garment Factories in Vietnam
As a key logistics partner, VICO Logistics is deeply committed to supporting garment factories in Vietnam as they navigate these changing landscapes.
Specialized Logistics for Vietnam-China Trade
VICO specializes in logistics services that connect Vietnam with China, a crucial trade route for the textile industry. With cost-effective solutions, secure transportation, and on-time deliveries, we empower garment factories in Vietnam to thrive in competitive markets.
Spot Trading Services
In addition to logistics, VICO offers spot trading solutions to help garment factories adapt quickly to market fluctuations. By sourcing raw materials efficiently and distributing finished products effectively, we enable businesses to maintain agility in an evolving global economy.
>> How VICO LTL trucking can streamline textile fabrics manufacturing logistics in Vietnam
The Role of Sustainability for Garment Factories in Vietnam
Sustainability is the future for garment factories in Vietnam. Through circular textile production and green logistics, these factories are setting new standards in responsible manufacturing.
VICO Logistics is proud to align with this vision by providing innovative solutions that support environmentally friendly operations and foster economic growth.
Why Garment Factories in Vietnam Choose VICO Logistics
- Tailored Solutions: Customized logistics plans address the unique challenges of the textile industry.
- Reliable Transportation: Ensuring timely and secure delivery of goods for seamless supply chain management.
- Sustainability Alignment: Supporting green initiatives to meet global standards and consumer expectations.
Shaping the Future Together
The 25th Anniversary of VITAS celebrated the resilience and innovation of garment factories in Vietnam. As the industry continues to grow, partnerships like those with VICO Logistics will play a vital role in ensuring long-term success and sustainability.
By embracing new opportunities and meeting global standards, garment factories in Vietnam are poised to lead the world in textile and apparel manufacturing.
Learn more our articles
1. How to Optimize Textile Logistics with VICO's China-Vietnam LCL Consolidation Service
2. How Multifunctional Bonded Warehouses in Vietnam Can Enhance Your Textile Business
3. EU Green Textiles and Garment Requirements for Vietnam export
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