Promoting sustainable development in the Vietnam textile and garment industry through green investment strategies in enterprises

Abstract

In light of the government’s Net Zero target by 2050, the textile and garment industry- one of the most significant sources of emissions and resource consumption, must shift its growth model toward sustainable development, utilizing clean technologies and circular production processes. With traceability of emissions sources and cross-border carbon taxation from major importing markets, the pressure on textile enterprises to transition is significant. The study emphasizes that green investments, supported by green finance, play a crucial role in enabling enterprises to undergo a comprehensive transformation. Analyzing survey results and public documents from prominent firms, including Saitex, Trung Quy, and Song Hong Garment JSC from 2020 to 2024, reveals that green investments enhance environmental performance, add value, improve reputation, and increase competitiveness in the international market. The study suggests that textile and garment enterprises in Vietnam need integrate sustainable aspect into business strategy and select investment relevant to the internal capabilities. Furthermore, the State needs to promulgate a national standard on green textile and garment as well as to have appropriate favourable policies for enterprises implementing green investment and transformation.