To stay competitive, Vietnam’s garment industry must transition from volume-driven production to green, circular operations, with access to green finance as the critical enabler.

Recognising this momentum, “Financing Vietnam’s Leap in Garment Sustainability”, co-hosted by Chan Chao International and CCX Partners on October 17 during the Vietnam International Textile & Garment Exhibition (VTG) 2025, brought together policymakers, financiers, manufacturers, academics, and innovators to explore how capital can accelerate this sustainability leap.

Opening the strategy forum, Trinh Thi Thu Hien, deputy director general of the Agency of Foreign Trade under the Ministry of Industry and Trade, offered strategic insights on driving forces from FTAs and elevating Vietnam’s garment export competitiveness through rules of origin compliance and tariff preference utilisation.

“Vietnamese goods benefit from substantial advantages over those from countries without FTAs, particularly preferential tariff treatment that enables competitiveness in market access. The FTAs, however, encompass deeper commitments on labour, environmental, and sustainable development,” Hien said. "International rules are shaping orientation for Vietnam's textile and garment industry to adapt and approach the green transformation objective, which is considered to be the pressure to motivate the sector."

Maria Pateguana, unit head private sector development of VRM at the Asian Development Bank (ADB) Vietnam, highlighted “Green is no longer a cost – it’s currency”. She shared ADB’s efforts through the Trade and Supply Chain Finance Programme (TSCFP), GS1 Carbon, SME Sustainability Standards Toolkit, aiming to help Vietnamese suppliers navigate environmental, social, and governance (ESG) disclosure, digital product passports, and green financing eligibility.

From an impact investing perspective, Trang Ngo, associate vice president at the Impact Investment Exchange, highlighted how “Green and Orange Transformation” models are reshaping the future of inclusive, gender-smart investment across Asia’s apparel industry.

Closing the forum was a discussion between Hien from Agency of Foreign Trade, Rajkishore Nayak, Assoc. Prof. from RMIT University, and Pham Thi Van Thanh, branch director of VietinBank South Saigon, offering complementary perspectives from policy, research, and finance.

The discussion explored the investment opportunities and FTA utilisation via availing rules of origin, emphasised how global sustainability frameworks like the Corporate Sustainability Due Diligence Directive (CSDDD), Carbon Border Adjustment Mechanism are reshaping Vietnam’s garment exports, while scaling up sustainable material innovation, and expanding green financing solutions to support the industry’s transformation.

Thanh underscored VietinBank’s leadership in green finance, supporting apparel SMEs via its GreenUp programme, alongside the recent introduction of a sustainable finance framework.

A dynamic conversation unfolded between Kent Teh, senior director of Tessellation Group, and Le Thanh Van, CEO and founder of GUMAC, bridging global manufacturing expertise with local brand ambition. The representative of Tessellation emphasised that sustainability is not a cost but a competitive edge, and shared how it empowers SMEs and innovators with capital and know-how. GUMAC, in turn, reflected the aspirations of Vietnam’s emerging fashion brands, seeking green finance, strategic partnerships, and global networks to scale their sustainable vision.

As Chan Chao and CCX Partners look ahead to VTG 2026, the vision is set. “To build a platform where green capital meets manufacturing transformation, and where Vietnam’s next generation of apparel brands can thrive – sustainably, competitively, and globally.”

Source: VIR