Cascale, Aii report shows Vietnam gains ground in apparel’s low-carbon shift

The study titled "Vietnam Country Report: Macroeconomic, Socioeconomic, and Industry Analysis" provides an in-depth look astatine Vietnam's economical and concern landscape.

It is the archetypal of a bid that integrates insights from Cascale's sustainability appraisal tool, Higg Facility Environment Module (FEM), exclusively featured connected Worldly.

An investigation of implicit 1,200 verified Higg FEM submissions from 2023 reveals a important c footprint owed to ember usage, with 12% of facilities straight utilizing ember and 94% babelike connected Vietnam's coal-heavy energy grid.

Despite this, renewable vigor makes up little than 2% of vigor depletion wrong the sector, presenting a important accidental for transitioning to greener practices arsenic outlined successful the Industry Decarbonization Roadmap (IDR) by Cascale and Aii.

As per the report, Vietnam's economical forecast shows a promising 6.5% maturation complaint by 2025, surpassing its determination counterparts.

The manufacturing manufacture remains a cornerstone of this growth, accounting for astir 23.88% of GDP successful 2023. Foreign Direct Investment (FDI) besides reflects beardown capitalist confidence, with $31.4bn recorded successful the archetypal 11 months of 2024.

The apparel and footwear manufacture generates 3 cardinal workers and was estimated to lend $71bn successful export revenues for Vietnam successful 2024.

However, it besides confronts superior sustainability issues, specified arsenic precocious vigor usage and c emissions.

Vietnam has pledged to heighten its renewable vigor usage by 65-70% by 2045, aiming to chopped greenhouse state emissions by astir 70-80%, demonstrating its committedness to proviso concatenation decarbonisation aligned with the IDR.

The IDR ensures that resources are allocated effectively, enabling the realisation of low-carbon sourcing and further advantages. This involves concentrating efforts connected the captious 10% of sites wrong the textile and apparel proviso chain, immoderate of which are located successful Vietnam, arsenic these are liable for much than 80% of the worldwide manufacturing emissions.

The study recommends prioritising the uptake of renewable vigor and the implementation of circular system practices.

It urges brands to cultivate enduring partnerships with their proviso concatenation collaborators, which volition beforehand fairness and catalyse reformative concern methods. There is an accent connected investing successful the enhancement of worker skills, particularly successful areas related to sustainability and environmentally affable technologies.

The study besides recommended staying informed astir changes successful Vietnam's regulatory scenery to warrant adherence to regulations and to instrumentality vantage of emerging marketplace prospects.