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13.06.2023

The impact of textile production and waste on the environment

  • With fast fashion, the quantity of clothes produced and thrown away has boomed.

Fast fashion is the constant provision of new styles at very low prices. To tackle the impact on the environment, the EU wants to reduce textile waste and increase the life cycle and recycling of textiles. This is part of the plan to achieve a circular economy by 2050.

Overconsumption of natural resources
It takes a lot of water to produce textile, plus land to grow cotton and other fibres. It is estimated that the global textile and clothing industry used 79 billion cubic metres of water in 2015, while the needs of the EU's whole economy amounted to 266 billion cubic metres in 2017.

To make a single cotton t-shirt, 2,700 litres of fresh water are required according to estimates, enough to meet one person’s drinking needs for 2.5 years.

  • With fast fashion, the quantity of clothes produced and thrown away has boomed.

Fast fashion is the constant provision of new styles at very low prices. To tackle the impact on the environment, the EU wants to reduce textile waste and increase the life cycle and recycling of textiles. This is part of the plan to achieve a circular economy by 2050.

Overconsumption of natural resources
It takes a lot of water to produce textile, plus land to grow cotton and other fibres. It is estimated that the global textile and clothing industry used 79 billion cubic metres of water in 2015, while the needs of the EU's whole economy amounted to 266 billion cubic metres in 2017.

To make a single cotton t-shirt, 2,700 litres of fresh water are required according to estimates, enough to meet one person’s drinking needs for 2.5 years.

The textile sector was the third largest source of water degradation and land use in 2020. In that year, it took on average nine cubic metres of water, 400 square metres of land and 391 kilogrammes (kg) of raw materials to provide clothes and shoes for each EU citizen.

Water pollution
Textile production is estimated to be responsible for about 20% of global clean water pollution from dyeing and finishing products.

Laundering synthetic clothes accounts for 35% of primary microplastics released into the environment. A single laundry load of polyester clothes can discharge 700,000 microplastic fibres that can end up in the food chain.

The majority of microplastics from textiles are released during the first few washes. Fast fashion is based on mass production, low prices and high sales volumes that promotes many first washes.

Washing synthetic products has caused more than 14 million tonnes of microplastics to accumulate on the bottom of the oceans. In addition to this global problem, the pollution generated by garment production has a devastating impact on the health of local people, animals and ecosystems where the factories are located.

Greenhouse gas emissions
The fashion industry is estimated to be responsible for 10% of global carbon emissions – more than international flights and maritime shipping combined.

According to the European Environment Agency, textile purchases in the EU in 2020 generated about 270 kg of CO2 emissions per person. That means textile products consumed in the EU generated greenhouse gas emissions of 121 million tonnes.

Textile waste in landfills and low recycling rates
The way people get rid of unwanted clothes has also changed, with items being thrown away rather than donated. Less than half of used clothes are collected for reuse or recycling, and only 1% of used clothes are recycled into new clothes, since technologies that would enable clothes to be recycled into virgin fibres are only now starting to emerge.

Between 2000 and 2015, clothing production doubled, while the average use of an item of clothing has decreased.

Europeans use nearly 26 kilos of textiles and discard about 11 kilos of them every year. Used clothes can be exported outside the EU, but are mostly (87%) incinerated or landfilled.

The rise of fast fashion has been crucial in the increase in consumption, driven partly by social media and the industry bringing fashion trends to more consumers at a faster pace than in the past.

The new strategies to tackle this issue include developing new business models for clothing rental, designing products in a way that would make re-use and recycling easier (circular fashion), convincing consumers to buy fewer clothes of better quality (slow fashion) and generally steering consumer behaviour towards more sustainable options.

Work in progress: the EU strategy for sustainable and circular textiles
As part of the circular economy action plan, the European Commission presented in March 2022 a new strategy to make textiles more durable, repairable, reusable and recyclable, tackle fast fashion and stimulate innovation within the sector.

The new strategy includes new ecodesign requirements for textiles, clearer information, a Digital Product Passport and calls companies to take responsibility and act to minimise their carbon and environmental footprints

On 1 June 2023, MEPs set out proposals for tougher EU measures to halt the excessive production and consumption of textiles. Parliament’s report calls for textiles to be produced respecting human, social and labour rights, as well as the environment and animal welfare.

Existing EU measures to tackle textile waste
Under the waste directive approved by the Parliament in 2018, EU countries are obliged to collect textiles separately by 2025. The new Commission strategy also includes measures to, tackle the presence of hazardous chemicals, calls producers have to take responsibility for their products along the value chain, including when they become wasteand help consumers to choose sustainable textiles.

The EU has an EU Ecolabel that producers respecting ecological criteria can apply to items, ensuring a limited use of harmful substances and reduced water and air pollution.

The EU has also introduced some measures to mitigate the impact of textile waste on the environment. Horizon 2020 funds Resyntex, a project using chemical recycling, which could provide a circular economy business model for the textile industry.

A more sustainable model of textile production also has the potential to boost the economy. "Europe finds itself in an unprecedented health and economic crisis, revealing the fragility of our global supply chains," said lead MEP Huitema. "Stimulating new innovative business models will in turn create new economic growth and the job opportunities Europe will need to recover."

(c) CHT Group
22.06.2021

CHT: "We are hiring." Humans Resources Policy in Times of Pandemic and Skills Shortage

The CHT Group is a globally operating company group for specialty chemicals. It has been in business for more than 65 years in a wide variety of industrial sectors and markets. Innovative and high-quality specialty chemicals alongside convincing services are just as much part of the portfolio as chemical auxiliaries and additives.

Textination spoke with Kurt Speckle [Head of Technical Service Dyestuffs] and Ursula Häberli [Head of Human Resources] specifically for the Textile Solutions division about the challenges of a successful human resources policy in such special times as a pandemic and the shortage of skilled workers.

The CHT Group is a globally operating company group for specialty chemicals. It has been in business for more than 65 years in a wide variety of industrial sectors and markets. Innovative and high-quality specialty chemicals alongside convincing services are just as much part of the portfolio as chemical auxiliaries and additives.

Textination spoke with Kurt Speckle [Head of Technical Service Dyestuffs] and Ursula Häberli [Head of Human Resources] specifically for the Textile Solutions division about the challenges of a successful human resources policy in such special times as a pandemic and the shortage of skilled workers.

The Technical Service Dyestuff department, headed by Kurt Speckle, who has worked for CHT for 32 years, currently comprises 16 people. It consists of a technical staff, which supports customers worldwide in the form of technical advice, on-site trials, lectures and in the creation of presentations, as well as a laboratory team, which handles inquiries regarding color settings, problem solutions, fastness, etc. Depending on the customer inquiry, both departments work hand in hand together.

The know-how and the heart of the technical staff consists of six people, all 50+, whom Kurt Speckle - with a grin - also calls "textile dinosaurs". In addition, young technicians with operational experience are being trained in order to be introduced to larger tasks. The apprenticeship training for textile laboratory technicians at CHT SWITZERLAND AG has a supporting effect.

As a globally operating company group for specialty chemicals, the CHT Group has been active in numerous industrial sectors and markets of 20 countries for more than 65 years. CHT Switzerland AG turns 50 this year and is the world's competence center for dyes. How has it been possible to establish and maintain such a good market position in dyes?

Kurt Speckle: In addition to the quality level of our products and the wide range of more than 700 products covering the various quality requirements of today's customers, CHT Switzerland also offers an excellent technical service for the product application. This globally known additional service makes us interesting for customers and generates inquiries worldwide. Transferring customer-specific problem solutions from our laboratory to production is one of the keys to our success.

In the Textile Solutions division, you have a wide range of specialty chemicals and dyes for textile production in your portfolio. In your opinion, in which direction is the textile industry currently moving in terms of dye chemistry - what trends do you see? What does this mean for your product range?

Kurt Speckle: One of the challenges today is to find the right dye gamma for the desired application. In recent years, we have constantly adapted the range to the new needs and requirements. In addition to these technical specifications, the entire textile finishing industry is also constantly confronted with new ecological and toxicological legal requirements. Textiles and also technical textiles not only have to meet certain fastness requirements, but also have to comply with countless label requirements. REACH and many labels lead to constant adjustments in the dye finishing to ensure that the products are up-to-date with the latest technology.

How does optimal teamwork work in the dyestuff team, and how can you ensure that the knowledge and experience gained over many years is passed on?

Kurt Speckle: Exchange of experience works with people who have practical experience. Only this can be built upon and new information can be stored accordingly. We operate and communicate on a common drive. Lively verbal communication is also essential for this. Our own tests in the laboratory and also in the production at customers' sites form the actual wealth of experience of our employees.

We are observing various megatrends that have taken a new turn as a result of the pandemic and that also directly affect your customers in the textile industry: Neo-ecology, connectivity and digitalization, health - to name just a few. To what extent does this challenge you as a service provider for your customers and as an employer? Is there a changed requirements profile for your employees?

Kurt Speckle: Due to the omission of traveling and direct customer contact, the working picture has of course changed. Due to the experience potential, however, many problem inquiries can be processed and solved via a wide variety of communication options. However, this cannot be seen as a sustainable and permanently established system. Experience and further development can only take place through practical trials on the most varied machines under the most varied conditions and with our dyes.

In which areas of training - whether at university or in apprenticeships - do you see a need for improvement in the curricula? Do career starters have the necessary skills for your company, or do you need to provide additional training in fundamental required areas?

Ursula Häberli: We train our future pool of specialists internally. In addition, we have several apprentices every year as textile and chemical laboratory technicians, whom we offer a permanent position afterwards. The training at the vocational school and in the advanced courses is excellent. The apprentices are challenged in many different areas. Textile laboratory assistants complete exactly the same training as chemical laboratory assistants, but have additional 240 lessons of textile training and textile courses. Textile laboratory assistants now require very extensive, in-depth and broad specialist knowledge. The textile industry is developing rapidly and new, complex content is constantly being added to the already very broad basic knowledge. We also actively support further education, for example the BSc Design & Technology at the Swiss Textile College. This training is broadly based and provides employees with good specialist knowledge and various additional essential skills.

What do you think about the personnel situation at CHT in general? Can you fill all positions? Who are you currently looking for most urgently?

Ursula Häberli: Our long-standing market presence and the good reputation we have built up over 50 years with our "customer first" approach always help us to attract talent. We are currently looking for a person as a textile technician for the Dyestuffs BU. Here we are planning early for the succession of a textile dinosaur who may retire in 2022. And for the Garment Team we are also looking for a textile technician.

The garment sector is a textile specialty that has been increasingly relocated to eastern countries in the last 10 years. Therefore, the search will certainly be a challenge.

You have built a career portal for CHT at https://career-switzerland.cht.com. With this website, you directly address different target groups: Apprentices, students, young professionals and experienced professionals. What role do the "old stagers" play in the company group?

Ursula Häberli: The old stagers are sometimes called "dinosaurs" by us - textile workers like them, with an often lifelong career in the textile world, are rare, pessimistically speaking: dying out. But all joking aside, the old stagers are enormously important. It is up to them to actively pass on their knowledge to future generations. This is already working very well on a day-to-day basis. The dyestuff team - including the boss - deliberately sits together in one large room so that a lot can be overheard and discussed. The team recently launched the "Textile Lunches". These are short concise learning nuggets to share knowledge and experience.

Employer branding seems to have been the magic word for some time now. Create an attractive employer brand, focus on strengths such as open corporate culture, transparent communication, responsibility for one's own area and employee benefits - and all positions are filled very quickly. What does CHT think of employer branding, what experience have you had with it, and what special offers do you provide to prospective employees?

Ursula Häberli: With the career site https://career-switzerland.cht.com, we have deliberately chosen a modern, outward-looking tool to strengthen our employer brand. CHT ambassadors tell their stories and make job seekers want to join us and help shaping the future. Another big plus is that the workplace is located in a wonderful landscape with a high recreational value, close to Lake Constance and an impressive mountain landscape, where our employees like to spend their time.

For some time now, the CHT company group has been operating under a new claim: Chemistry with Character. This statement was created for marketing purposes, but it certainly also says something about the company. What does this claim mean in particular for your personnel policy? Who is already on your team? Who are you looking for? And how many rough edges are employees allowed to have?

Ursula Häberli: We are looking for doers with high team player qualities. That's what sets us apart and makes us prepared for the future. We offer an extremely exciting field of work that demands a high degree of personal responsibility, initiative and creativity. We are proud to be the competence center for dyes at the Montlingen site - one of the few companies in the geographic area of Eastern Switzerland / Vorarlberg / Southern Germany that still exists and will continue to exist for a long time.

 

The interview was conducted by Ines Chucholowius, Managing partner Textination GmbH

Photo: pixabay
25.05.2021

Water Saving Solution for Textile Industry EC Project Waste2Fresh

The Fraunhofer Institute for Biomedical Engineering IBMT, with its long-term expertise in nanotoxicity and nanosafety testing, contributes to a new EC project for water saving solutions for textile industry. This industry uses a vast amount of water for different steps in the textile dyeing process. It also produces a lot of wastewater, which contains a range of chemicals and dyes.

The Fraunhofer Institute for Biomedical Engineering IBMT, with its long-term expertise in nanotoxicity and nanosafety testing, contributes to a new EC project for water saving solutions for textile industry. This industry uses a vast amount of water for different steps in the textile dyeing process. It also produces a lot of wastewater, which contains a range of chemicals and dyes.

Breakthrough innovations are needed in energy intensive industries to recycle water and create closed loops in industrial processes. 20% of global industrial water pollution comes from textile manufacturing. To reduce the high amount of freshwater used in textile industry, the EC-funded Waste2Fresh project will develop a closed-loop process for textile manufacturing factories in which wastewater is collected, recycled and used again. Novel and innovative catalytic degradation approaches with highly selective separation and extraction techniques will be developed, based on nanotechnology. According to the European Commission, such “closed loops“ would significantly reduce the use of fresh water and improve water availability in the relevant EU water catchment areas, as outlined in the Water Framework Directive.

Closed loop recycling system for wastewater from textile manufacturers
Waste2Fresh meets the above challenges and industry needs by developing and demonstrating (to TRL 7) a closed loop recycling system for wastewater from textile manufacturing factories; to counteract freshwater resource scarcities and water pollution challenges exacerbated by energy intensive industries which are major users of fresh water (for e.g., processing, washing, heating, cooling).

The Waste2Fresh technology is developed to reduce current use of freshwater resources and considerably increases the recovery of water, energy and other resources (organics, salts and heavy metals). The result is a 30% increase in resource and water efficiency compared to the state-of-the-art. The system will ultimately lead to considerable environmental improvements and accordingly reduce the EC and global environmental footprint.

Fraunhofer IBMT expertise in human-toxicity and -safety testing
The Fraunhofer Institute for Biomedical Engineering IBMT will be primarily responsible for performing nanotoxicity and nanosafety testing during the whole technology process (from development to demonstration), ensuring that the developed system and processes meet relevant safety regulations. The Fraunhofer IBMT collaborates with all consortium partners developing and using to develop approaches for ensuring that the developed nanomaterial-based components meet relevant health and safety standards during their use.

For the hazard assessment of the developed nanomaterials, the Fraunhofer IBMT will perform a set of in vitro toxicity studies using commercially available human cell lines. The results of this toxicity studies will be the basis for the development of relevant safety procedures for handling and using the developed recycling technology.

 

Project funding: H2020-EU.2.1.5.3. - Sustainable, resource-efficient and low-carbon technologies in energy-intensive process industries

Duration: 12/2020- 11/2023

Coordinator:
KONYA TEKNIK UNIVERSITESI, Turkey

Project partners:
CENTRE FOR PROCESS INNOVATION LIMITED LBG, United Kingdom
ERAK GIYIM SANAYI VE TICARET ANONIM SIRKETI, Turkey
FRAUNHOFER GESELLSCHAFT ZUR FOERDERUNG DER ANGEWANDTEN FORSCHUNG E.V., Fraunhofer-Institut für Biomedizinische Technik IBMT, Germany
INNOVATION IN RESEARCH & ENGINEERING SOLUTIONS, Belgium
INSTYTUT MOLEKULYARNOI BIOLOGII I GENETYKY NAN UKRAINY, Ukraine
L'UREDERRA, FUNDACION PARA EL DESARROLLO TECNOLOGICO Y SOCIAL, Spain
NANOFIQUE LIMITED, United Kingdom
NANOGENTECH LTD, United Kingdom
PCI MEMBRANES SPOLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA, Poland
STIFTELSE CSDI WATERTECH, Norway
THE OPEN UNIVERSITY, United Kingdom
ULUDAG CEVRE TEKNOLOJILERI ARGE MERKEZI SANAYI VE TICARET LIMITED SIRKETI, Turkey
UNIVERSIDAD INDUSTRIAL DE SANTANDER, Colombia
UNIVERSITA DEGLI STUDI DI TRENTO, Italy
VEREALA GMBH, Switzerland
VSI SOCIALINES INOVACIJOS SVARESNEI APLINKAI, Lithiani

(c) Messe Frankfurt Exhibition GmbH
30.04.2019

SUSTAINABILITY A MAJOR TOPIC AT TECHTEXTIL AND TEXPROCESS

"Sustainability at Techtextil" and "Sustainability at Texprocess" are the two topics by which these leading international trade fairs for technical textiles and non-wovens, and for the processing of textile and flexible materials, will be explicitly turning their focus for the first time onto their exhibitors' approaches to sustainability. To this will be added a broad complementary programme on this topic. Among those contributing will be major players in the industry, such as Kering, Lenzing and Zalando.

"Sustainability at Techtextil" and "Sustainability at Texprocess" are the two topics by which these leading international trade fairs for technical textiles and non-wovens, and for the processing of textile and flexible materials, will be explicitly turning their focus for the first time onto their exhibitors' approaches to sustainability. To this will be added a broad complementary programme on this topic. Among those contributing will be major players in the industry, such as Kering, Lenzing and Zalando.

Fibres made of recycled polyester, bio-based high-tech textiles, waterconserving dyeing and finishing processes, functional and work clothing, using little or no solvents and adhesives: in the field of technical textiles, and when processing textile and flexible materials, more and more firms are adopting approaches to greater sustainability. Through "Sustainability and Techtextil" and "Sustainability at Texprocess" the leading international trade fairs, from 14 to 17 May, will be demonstrating exactly these approaches taken by their exhibitors. In addition, numerous event formats will be taking up the topic of sustainability at both fairs.

Fair guide for selected exhibitors
In the run-up to Techtextil and Texprocess exhibitors at both fairs were able to submit their approaches and evidence of their work on every aspect of sustainability to the fairs' organisers. An independent, international jury of experts on sustainability assessed the submissions, in accordance with the relevance and validity of current national and international product-sustainability labels, such as currently mainly Bluesign, Cradle-to-Cradle, EU Eco Label, ISO 14001, GOTS, GRS as well as SteP by Oeko-Tex.

Overall, 47 firms were selected, including 44 exhibitors at Techtextil and three at Texprocess. Visitors who are interested will find the selected firms in their own Fair Guide, which will be available at the Fair, via filter function under "Sustainability" in the online visitor search facility, and on both fairs' apps. In addition, the exhibitors so selected will be publicizing their participation at their exhibition stands.

Members of the international jury of experts: Chairman: Max Gilgenmann, Consulting Service International Ltd. (Germany and China); Claudia Som, Empa (Switzerland); Jan Laperre, Centexbel (Belgium); Heike Illing-Günther, Textile Institute of Saxony (Sächsisches Textilinstitut e.V., Germany); Karla Magruder, Fabrikology (USA); Lauren Zahringer, SAC Social Apparel Coalition (Netherlands).

Techtextil Forum featuring theme of sustainability
Taking "Towards sustainability" as its motto, the Techtextil Forum on 14 May between 11 a.m. and 3 p.m. will be providing a series of contributions devoted exclusively to sustainable textile innovations. Chaired by Braz Costa, managing director of the Portuguese technology centre CITEVE, among the topics on the programme will be: textile recycling (TWD Fibres, Velener Textil), sustainable construction with wool (Minet S.A., Romania), sustainable textile coatings (Centexbel), biopolymers (RWTH Aachen University), traceability of GMO-free cotton (Hohenstein Institute) and low-cost, bio-based carbon fibres (Jules Verne Research Institute, France).

Techtextil Innovation Award
For the first time the Techtextil Innovation Award will be presented to two firms in the category of sustainability. The winners will be announced and the awards presented on the first day of the fair during the opening ceremony. During the whole time of the fair visitors will also be able to find out about the prize-winners and their award-winning projects at the Techtextil Innovation Award Exhibition Area in Hall 4.2.

Texprocess Forum with branch of Fashionsustain Conference
Through a branch of Fashionsustain Berlin, Messe Frankfurt's conference on every aspect of sustainable textile innovations, the Texprocess Forum on the morning of the 14 May will be devoted exclusively to the theme of sustainability in the textile and fashion industries in all its aspects. The first keynote, "Sustainable innovation – a matter of survival", will come from Micke Magnusson, co-founder of the Swedish start-up We are Spindye. Next, posing the question "Is Sustainability the Key to Textile Innovations?", will come a discussion by leaders in the industry such as Clariant Plastics and Coatings, Indorama, Lenzing, Perpetual Global, Procalçado S.A., Kering und Zalando. Fashionsustain will be chaired among others by Karla Magruder, founder of Fabrikology International.

Innovation Roadshow features sustainable footwear production
Next at the Fashionsustain Conference fibre manufacturer Lenzing, knitting-machinery producer Santoni and shoe-component manufacturer Procalçado S.A. will be presenting the Innovation Roadshow, entitled "The Future of Eco-Conscious Footwear Manufacturing." The roadshow will be supported by the Messe Frankfurt Texpertise Network. It will feature examples of the sustainable production process of a shoe, thus demonstrating how a fundamental change to sustainability can already be a reality in the fashion and textile industries today. The panel will be chaired by Marte Hentschel, founder of Sourcebook, the B2B network for the fashion industry.

Vietnam´s Grament Industry experiences Investment Boom ©Beckmann Agency
12.04.2016

VIETNAM'S GARMENT INDUSTRY EXPERIENCES INVESTMENT BOOM

  • FTA attracts Manufacturers
  • Proportion of local added Value should rise

Hong Kong (gtai) - Vietnam is one of the main production sites of the clothing industry. Already in recent years the country had attracted buyers from around the world. In 2014 textiles and clothing shared 22% of the total merchandise exports. According to the state owned VINATX in 2015 Vietnam was the fourth largest apparel exporter in the world. The through the FTA with the EU and the Pacific neighbors expected growth requires investment in the supply industry.

  • FTA attracts Manufacturers
  • Proportion of local added Value should rise

Hong Kong (gtai) - Vietnam is one of the main production sites of the clothing industry. Already in recent years the country had attracted buyers from around the world. In 2014 textiles and clothing shared 22% of the total merchandise exports. According to the state owned VINATX in 2015 Vietnam was the fourth largest apparel exporter in the world. The through the FTA with the EU and the Pacific neighbors expected growth requires investment in the supply industry.

In 2015 the Vietnamese garment exports amounted to about USD 27 billion. Estimates of the Vietnam National Textile and Garment Group (Vinatex) show they will increase by 8% in 2016. Nearly USD 30 billion of sector products would then be exported and assure Vietnam a ranking among the four largest exporting countries. The world market however is stagnating. The sector contributes nearly 10% to the industrial added value of the country, 2.5 million people are employed.

As the most important export market remains the United States. According to Vinatex the export to the US rose by 13% in 2015. The group dominates the textile production in the country, including companies like Garment 10, Phong Phu Textile and Garment Corporation, Viet Tien Garment and Hoa Tho Textile and Garment. Vinatex itself exported products worth of USD 3.5 billion, representing an increase of 10%.

TPP promises benefits

The sector has high hopes on the in February 2016 signed FTA Trans-Pacific Partnership (TPP), in which next to the USA, Japan and Vietnam and eleven Pacific Room states arranged added tariff reductions and improved market access. If the ratification process in all countries will be successful, the agreement would enter into force in February 2018. Analysts show that Vietnam would become one of the main winners, among others due to the lowest labor cost in comparison of all other involved countries. The agreement therefore is welcomed by the majority of the population.

Pre-products have to be imported

According to experts the competitiveness of Vietnam will be increased especially in the area of textiles and clothing. About 70% of the textile exports will be delivered to TPP member countries. Despite the annual growth rates of 15 to 20% the value adding in the country remained low. Imports of raw materials and accessories are high and totaled to USD 16.5 billion in 2015. 90% of the 5,028 textile factories in Vietnam (end of 2013) are apparel manufacturers, that mean sewing operations. By contrast there are just four cotton-processing and two synthetic fibers producing companies.   

Imports of textile industry (in USD million, annual change in %)
  2014 2015 Change
Cotton 1,443 1,623 12.5
Fibers 1,559 1,515 -2.8
Fabrics 9,428 10,197 8.2
Accessories 3,031 3,193 5.3
Total 15,461 16,528 6.9

Source: Vietnam Textile and Apparel Association (Vitas)

The sector is facing a challenge: TPP offers the free imports only if 55% of the value is provided in the member states. For the textile sector this is called the "Yarn Forward Rule", that means everything following the yarn. In Vietnam the proportion of the added value currently stands at 25%.

The text of the agreement is online available: (http://www.tpp.mfat.govt.nz/text). Chapter 4 deals with the textile and clothing sector and contains important annexes to the rules of origin. TPP is expected to attract investments into the country, as the value supply chain is incomplete: yarns and fabrics are mostly imported from East Asian countries.

Value adding rules require investment

Also the free trade agreement between the EU and Vietnam, agreed on August 4th 2015, should push the exchange of commodities. The share of the EU clothing imports from Vietnam is only 3%. Thus the country ranks as the sixth supplier. In the United States, Japan and South Korea Vietnam, however, is the second largest clothing supplier.

Following ratification of TPP an abolishment of 99% of all tariffs would follow.  Textiles from Vietnam would then be duty-free within a maximum period of seven years. For that TPP
defines clear rules of origin: (http://trade.ec.europa.eu/doclib/press/index.cfm?id=1437).

If investments would flow into the country and strengthen the supply chain, the value of clothing exports from Vietnam could be doubled until 2020 - so bold estimates.   Then the annual production of yarns should reach 2 million tons, the amount of fabrics 2 billion square meters and that of clothing 6 billion pieces. Following the Vietnam Textile and Apparel Association (VITAS)  the export value then should be between USD 45 to 50 billion. This requires new textile machinery. So far, mainly Chinese products were in demand, but also for German suppliers the opportunities emerge.

Production capacity of the Vietnamese textile industry
Sector Annual capacity
Cotton ginning (1,000 t) 70
Synthetic fibers (1,000 t) 400
Filament yarn (1,000 t) 182
Spinning (1,000 t) 900
Weaving (Mio. m²) 800
Knitting (1,000 t) 110
Nonwovens (1,000 t) 16
Dyeing and finishing (Mio. m²) 1200
Toweling (1,000 t) 62
Clothing(Mio. Stück)  4000

Source: Vitas

However, many sector representatives in Vietnam see TPP also critical, because by the agreement large new market participants could intensify competition. The small and medium companies are hardly competitive due to their outdated technology, lack of capital and low know-how. They demand government aid in the form of tax breaks and subsidies for land. The Bank for Investment and Development of Vietnam has already provided USD 2 billion for the support of the industry for the next five years.    

Investment in regional centers

Large investments are happening already now: The TAL Group from Hong Kong, one of the largest owner-managed apparel producers, has invested USD 600 million in factories in the Dai An Industry Zone in Hai Duong Province, especially for yarn dyeing and finishing. Haputex Development, which is also from Hong Kong, has built with up to USD 120 million in the province of Binh Duong on a twelve hectare site a Weaving mill which should go into operation 2016.  There also the South Korean company Kyungbang is building a spinning mill for USD 40 million. The Texhong Textile and Garment Group is building with USD 300 million a yarn factory in Quang Ninh. And in Nam Dinh the Yulun Jiangsu Textile Group, a state-owned company from China, is building with USD 68 million a factory for the manufacturing and dyeing of yarn.

Investments are mainly attracted by the regions Ninh Binh, Hue, Binh Duong and Ham Dinh, as well as the cost favorable  Mekong Delta. New target regions are at the borders with Laos and Cambodia, such as the area Tay Nguyen. As the largest Vietnamese group also Vinatex invests in new capacities and announces in convincing interviews to reach by 2020 a local added value part of 65% in final finished products.

Target markets of Vietnamese apparel exports (in USD million, annual change in %)
  2014 2015 Change
USA 9.841 10.984 11,6
EU 2.261 3.325 47,1
Japan 2.092 2.163 3,4
Korea (Rep.) 2.092 2.163 3,4
Total 24.692 27.021 9,4

Source: Vietnam Textile and Apparel Association (VITAS)

Contact address:
Vietnam Textile and Apparel Association (VITAS)
2nd Floor, 32 Trang Tien Str., Hoan Kiem District, Hanoi, Vietnam
Tel.: 0084 4/39 36 41 34; Fax: -39 34 98 42
Email: info@vietnamtextile.org.vn; Internet: http://www.vietnamtextile.org.vn