Vietnam
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Country Overview
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.
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 Cut-Make-Trim (CMT) industry relies heavily on imported raw materials and fabrics, making it sensitive to fluctuations in global supply availability and pricing. Over 80 percent of its fabrics needs are met through imports.
SME-driven industry with strong FDI and assembly focus
80%
Percentage of T&A industries that are SME
Majority of Vietnam’s T&A industry consists of small and medium enterprises (SMEs), large firms contribute the bulk of production and exports. The sector is highly open to foreign investment, with 62% of enterprises being FDI-backed. Approximately 70% of the industry operates on an assembly manufacturing model.
High volume of pre-consumer textile waste is downcycled
45%
Vietnam's Waste Stream - Blended textiles
20%
Vietnam's Waste Stream - Cotton rich
The textile and apparel 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
waste Type
waste Type
waste Type
Post-industrial
Mix
0.8 USD/kg
Knitted beige, white, high quality
Post-industrial
Polymide
0.20 USD/kg
Post-industrial
Blended
0.08 USD/kg
Post-industrial
100% PET
0.14 USD/kg
Post-industrial
Cotton
0.2 USD/kg
Other Notes
- The waste aggregators are mostly concentrated in Southern Vietnam. Of the total pre-consumer waste generated the majority is blended, followed by polyester rich and lastly cotton rich.
- Thermo-mechanical recycling is used for polyester and to some extent polyamide (nylon) textile waste whereas mechanical recycling is being used for cotton rich and blended textile waste.
production clusters
Key regions with fibre production:
Hanoi Bac Giangᴬ, Quang NAmᴮ, Ho Chi Minhᶜ, Binh Duongᴰ, Tay Ninhᴱ
Key regions with apparel production:
Hanoiᴬ, Bac Ninhᴮ, Hai Duongᶜ, Binh Dinhᴰ, Da nangᴱ, Ho chi Minhᶠ, Dong Naiᴳ, Long Anᴴ, Binh Duongᴵ
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.
- 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
Annual Import quantity (HS 6309 + HS 6310 )
Annual Export quantity (HS 6309 + HS 6310 )
Other Notes
- Nam Phong is the largest fabric scrap trader in Vietnam, handling up to 3,600 tons annually. A significant portion of sorted waste is exported to European countries. However, much of the fabric scrap exported from Vietnam remains unsorted, with India being the top recipient.
- Worn clothing and other used textiles (HS 6309.00.00) are listed as prohibited consumer goods. However, data indicates that imports of these items continue, largely to meet the demand for recycling feedstock.
green energy
21.63%
Share of modern renewables in final energy consumption
Major sources being harnessed for renewable energy in vietnam are - Hydro (71.9%), wind ( 6.8 % ) and solar (21.3%)
Other Notes
Some of the regulatory mechanisms around green energy are as follows:
- Power Development Plan 8: Sets a clear direction for the country’s energy transition through 2030, with a vision to 2050. The strategy emphasizes 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.
- Strategies in place to scale up green finance by increasing green credit to 10% of total loans by 2025 and 25% by 2030.
