Green finance opportunities for sustainable production in the Vietnam Textile and Apparel Industry
“Vietnam textile and garment industry strive to achieve export turnover of US$40 billion in 2019 and is committed to comply with the cooperative relationship between sustainable development in implementing the greening program in the textile and garment industry and save water. The industry will continue to build solutions in terms of technology and governance with a vision to develop integration trends based on an assessment of the internal strength of Vietnam's textile and garment industry in particular and the economy in general,” Mr. Giang shared.
Ms. Thanh Thu elaborated on the discussion “As a bank to finance textile projects, Vietcombank(VCB)will introduce green and financial-related conditions into the financing programs for the textile industry to ensure funding for businesses. sustainable business. Specifically, through the condition of total investment for garment projects, VCB restricts the investment projects of factories that do not meet environmental, technology dating, and land use requirements. Regarding the loan control program, VCB recommends that investors equip waste water/waste water monitoring system automatically and send periodic environmental monitoring/monitoring report together with loan use inspection records.”
According to Mr. Nguyen Toan Thang - General Secretary of Vietnam Banking Association – in order to realize the goal of greening the textile industry, banks, textile factories and related parties must be updated in terms of the latest developments in the Free Trade Agreements (FTAs). The sectors participating in this endeavor must know how to protect the environment. To ensure that this is implemented, the government must impose regulations in the textile and garment industry that guarantee cleaner production initiatives in accordance with the principles of green finance. It is imperative for them to develop green production projects in the textile industry. After the workshop, businesses understood more the requirements set by banks in terms of accessing green finance. Businesses must ensure the sustainability of green textile projects and support banks towards developing green policies and credit packages that contribute to green textile industry. After the conduct of an initial audit, its result must be shared by the factories to interested parties.