Vietnam
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Country Overview
*All data is in tonnes per annum
TEXTILE WASTE
Post consumer textile waste
No items found.
pre consumer textile waste
Post Industrial textile waste
No items found.
Imported textile waste
No items found.
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KEY POINTS ON T&a LANDSCAPE
Leading sourcing hub for global brands
$47BN
Value of T&A exports (2023)
It is the world’s third-largest apparel exporter, primarily focused on garment manufacturing, with a smaller presence in fabric production and spinning. It serves as a key sourcing hub for major global brands such as Nike, Adidas, Uniqlo, H&M, and Levi’s.
High dependence on imported raw materials
99%
Raw Cotton Imports
40%
Synthetic fiber Imports
Vietnam’s CMT industry is highly dependent on imported raw materials and fabrics, making it vulnerable to global supply and price fluctuations. Nearly 46% of the country’s yarn output is exported, while the rest serves domestic needs. However, over 80% of Vietnam’s fabric demand is still met through imports, with domestic production largely concentrated in the Central and Southern regions.
SME-driven industry with strong FDI and assembly focus
65%
T&A Enterprises are Apparel Manufacturers
25%
T&A Enterprises are Fabric Manufacturers
5%
T&A Enterprises are Spinners and Fibre Manufacturers
80% of Vietnam’s T&A industry consists of SMEs, while large firms contribute to the bulk of production and exports. The sector is highly open to foreign investment, with 62% of enterprises being FDI-backed with major investments from China, S. Korea and Taiwan. Vietnam's garment industry is slowly transitioning from low value CMT contracts to higher value FOB contracts.
High volume of pre-consumer textile waste is downcycled
20%
Cotton-Rich Waste In Vietnam's Waste Stream
The T&A industry generates huge amount of waste from export-focused production. Around 60% of this waste is recycled through mechanical or thermo-mechanical processes, though typically downcycled due to technological and systemic limitations. The remaining 40% is sent to waste-to-energy facilities or other disposal methods.
waste cost
waste Type
composition
price
notes
Sorted pre-consumer
Polymide
$0.22 /kg
Sorted pre-consumer
Blended
$0.08 /kg
Sorted pre-consumer
100% PET
$0.14 /kg
Sorted pre-consumer
Cotton
$0.2-0.8 /kg
Knitted beige, white, high quality costs higher
Other Notes
- Source & conversion rate : 1 USD = 25,000 VND (2024)
- The waste aggregators are mostly concentrated in Southern Vietnam.
- While some large manufacturers sort textile waste by colour & composition, most factories limit sorting to removal of non-textile contaminants. Mostly small, informal firms are supporting larger companies through a fragmented collection and sorting network posing traceability and social compliance challenges
production clusters
Key regions with fibre production:
Hanoi Bac Giang(A), Quang NAm(B), Ho Chi Minh(C), Binh Duong(D), Tay Ninh(E)
Key regions with apparel production:
Hanoi(A), Bac Ninh(B), Hai Duong(C), Binh Dinh(D), Da nang(E), Ho chi Minh(F), Dong Nai(G), Long An(H), Binh Duong(I)
Other Notes
- Vietnam has established 414 industrial parks, including four export processing zones. The textile and garment sector comprises 7,000 factories. Southern Vietnam is home to 57% of the country’s 3,500 FDI enterprises, accounting for a total investment value of US$37 billion.
- While the labour cost is high, competitive energy costs and transportation infrastructure supports the optimization of manufacturing costs.
- Minimal ODM and OBM growth signifies that the industry is heavily reliant on manufacturing for others and seeing limitation in design, branding and market facing capabilities.
- Exporting yarn to China from Northern Vietnam is 50% cheaper and
50–75% faster than supplying from any other parts of Vietnam - Few major apparel manufacturers include Crystal International Grp Ltd, Saitex, Phong Phu and fibre producers like Vinatex and Tainan Spinning Co. Ltd.
Waste regulation
Law on Environment Protection:
Requires all businesses, including textile manufacturers to sort waste at the source into recyclable, organic, and other categories, with penalties for non-compliance, aiming to improve recycling rates and reduce landfill.
National Action Plan for Sustainable Production & Consumption (2021-2030)
Targets a 5–8% reduction in resource and material use in sectors like textiles by 2025, and a 7–10% reduction by 2030, through recycling, circularity, and sustainable sourcing. The plan develops incentive policies for green industries, environmental and waste recycling sectors, and promotes investment in eco-friendly products and technologies. It supports training, guidelines, and the replication of sustainable design and recycle-oriented models for textiles, alongside technical norms for efficient resource use and cleaner production.
National Action Plan on Circular Economy
Targets a sustainable, low-carbon economy by 2035 by raising renewables to 47% of primary energy, cutting energy use by 8–10%, and significantly improving waste collection and treatment. It aims to limit landfill disposal to under 50% and expand waste-to-energy capacity to 2,270 MW, focusing on key sectors like agriculture, energy, and manufacturing. The strategy promotes foreign investment and technology transfer to drive recycling, green innovation, and circular economy practices.
Decree on Management of Industrial Parks & Economic Zones (Eco-Industrial Parks)
Defines Eco-Industrial Parks (EIPs) and lays out a legal framework for their management and development. Provides solutions on efficient use of natural resources, cleaner production, material optimization, waste minimization, use of eco-friendly materials, technological upgrades, internal or cross-enterprise reuse of waste, and sustainable packaging and design. EIPs are evaluated every three years, with results guiding the re-granting, revocation, or invalidation of EIP or eco-business certificates.
Specialized Industrial Parks & Infrastructure
The government is prioritizing the development of large-scale textile and dyeing industrial parks, focusing on high-tech, sustainable manufacturing, and waste treatment infrastructure.
Waste trade
0.3 kT
Import quantities (HS 6309, 631010)
4.9kT
Export quantities (HS 6309, 631010)
Other Notes
- Worn clothing and other used textiles (HS 6309) are listed as prohibited consumer goods. However, data indicates that imports of these items continue, largely to meet the demand for recycling feedstock.
- Nam Phong is the largest fabric scrap trader in Vietnam, handling up to 3,600 tonnes annually. A significant portion of sorted waste is exported to European countries. However, much of the fabric scrap exported from Vietnam remains unsorted (49.7%), with India being the top recipient.
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green energy
21.63%
Share of modern renewables in final energy consumption
Other Notes
- Major sources being harnessed for renewable energy in vietnam are - Hydro (71.9%), wind ( 6.8 % ) and solar (21.3%) .
- Power Development Plan 8 : Sets a clear direction for the country’s energy transition through 2030, with a vision to 2050. The strategy emphasises the development of grid infrastructure, the scale-up of renewable energy, and support for industrial decarbonisation.
- DPPA regulation ( 2024 ): Enables direct transactions between renewable energy generators & industrial/commercial businesses.
- Green Credit Package for Textile and Garment Sector: With a US$ 160 Mn. budget, BIDV is offering preferential rates for the T&A enterprises inclining towards adoption of green practices
- Strategies in place to scale up green finance by increasing green credit to 10% of total loans by 2025 and 25% by 2030.
