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Tariffs Impending, Vietnam-Based Apparel Manufacturers Speak Out
Tariffs Impending, Vietnam-Based Apparel Manufacturers Speak Out

Yahoo

time19-05-2025

  • Business
  • Yahoo

Tariffs Impending, Vietnam-Based Apparel Manufacturers Speak Out

Collaboration on decarbonization, human rights anchors discussions at Cascale Forum: Ho Chi Minh City AMSTERDAM, THE NETHERLANDS; HONG KONG; OAKLAND, CA / ACCESS Newswire / May 19, 2025 / At the recent Cascale Forum: Ho Chi Minh City, over 600 manufacturers, leading brands, service providers, and supply chain partners - Cascale members and non-members alike - convened to address urgent challenges and opportunities in the consumer goods value chain. Topics spanned industry decarbonization, trade shifts, regulatory changes, facility improvements, responsible contracting, worker rights, and more. Discussions were especially critical for Vietnam-based apparel manufacturers, who may face impacts of higher U.S. tariffs when a 90-day pause on proposed 46-percent tariffs ends on July 8. A dedicated Vietnamese stage spotlighted local expertise and leadership, and the entire program was delivered bilingually to ensure full participation from Vietnamese stakeholders. Colin Browne, Cascale CEO, opened the event by challenging brands and suppliers to work together to set Science-Based Targets (SBTs) for decarbonization. "Setting an SBT without close consultation with one's supply chain is unacceptable and irresponsible given the near-term deadline of 2030," he said. "But with the right actionable data and mutual support, there is hope." Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association (VITAS, a Cascale association partner), delivered the opening keynote address. "None of us can go alone - collaboration is the only way," he said. "When brands, manufacturers, organizations and governments come together and share responsibility, any goal can be achieved." During the session "Navigating Global Policy: Impact on Sourcing Countries & Strategies," Andrew Martin, Cascale executive vice president, said: "In EMEA and the Americas, manufacturers are navigating an evolving maze of often conflicting regulations. Yet in the Asia-Pacific region, regulation is fast becoming strategy - as we are increasingly seeing many countries stepping up with more progressive policies. To support this, Cascale advocates for clear, consistent guidance that manufacturers can actually use. We're actively engaging across all three regions to push for global and regional frameworks that are practical, aligned, and grounded in manufacturers' realities. The Cascale Forum in Ho Chi Minh City reminds us that while policy can shift and stall, manufacturers have a great opportunity to lead. Our ongoing mandate is to ensure that this progress isn't slowed by uncertainty - but accelerated through collaboration." With Worldly, Cascale recently released a new report, "Navigating Regulation and Building Resilience: Key Trends in Corporate Supply Chain Responsibility for APAC in 2025," available in both Vietnamese and Chinese. Vietnam-based manufacturers spoke up at the Cascale Better Buying: Creating Shared Value for Buyers & Suppliers to Drive Decent Work for All session, reporting fears that global brand customers will pressure them to shoulder the costs of tariff impacts. They also urged prioritization of worker protections in high-risk countries like Vietnam, where apparel production employs three million people. "Manufacturers are clear: Global brands should not use tariffs as an excuse to roll back on their responsible business commitments," said Lindsay Wright, director of communications and strategic partnerships, Better Buying, Cascale. "If they do, the consumer goods industry will have to pick up the pieces later." Leonie Vaas, general manager - sustainability at Hirdaramani Apparel presented a case study during the session "From Factory Floor to Global Impact: How Manufacturers are Leading the Way." With a manufacturing footprint that includes over 30 facilities across Asia and Africa - including Vietnam - Hirdaramani embeds ESG practices into operations across regions. "At Hirdaramani, our Future First Sustainability Roadmap is built on the belief that manufacturers can be powerful catalysts for real change," she said. "By embedding sustainability into every part of our operations, from energy and water to employee well-being and community empowerment, we are not just meeting global standards - we are helping shape them. Aligned with global agendas such as the UN Sustainable Development Goals (SDGs), our Future First Roadmap is scalable across markets, collaborative, and impact-driven, enabling us to work closely with our partners. As an apparel manufacturer, we know that what we do matters, and delivering progress starts with taking responsibility." Matthew Guenther, vice president of corporate sustainability at TAL Apparel Ltd, which manufactures in Ethiopia, Thailand, and Vietnam, contributed to the session "Vietnam's DPPA: Powering Decarbonization Opportunities" by sharing TAL's perspective on the importance of renewable energy access for manufacturers. "Renewable electricity is a key intervention on our decarbonization roadmap," he said. "Rooftop solar will only provide 20-25 percent of our renewable electricity needs. Access to offsite renewable electricity projects, such as that offered through Vietnam's DPPA, would be a big unlock for our company to achieve our net-zero target." Adele Stafford, chief growth officer at Worldly, the leading platform for sustainability data and analytics in consumer goods supply chains, led the Worldly Product Roadmap - Data to Action session. As the Higg Index tools are owned and developed by Cascale and exclusively available on Worldly, the two organizations are tightly integrated, Stafford shared. "Cascale drives industry alignment and standards, while Worldly operationalizes those standards with scalable, dynamic technology,"she said. "Our shared mission is driving positive impact across the largest engaged supply chain network in the industry." Stafford also reported growing momentum on the platform: Over 20,000 Higg Facility Environmental Modules (FEMs) have already been completed in 2025, with each supplier sharing data with an average of four brands, improving efficiency. Presented by Lead Partner Worldly, the Cascale Forum: Ho Chi Minh City agenda was shaped by leaders from the Apparel Impact Institute (Aii), Crystal International, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Hirdaramani Group, New Balance, Puma Group, and VITAS, who served on the event's program advisory council. More information about programming, speakers, and sponsors can be found on the Cascale Forum: Ho Chi Minh City webpage. Next up? The Cascale Annual Meeting 2025, taking place September 15-17 in Hong Kong. Visit the Cascale Annual Meeting 2025 webpage for more information and sponsorship opportunities. ABOUT CASCALE Cascale is the global nonprofit alliance empowering collaboration to drive equitable and restorative business practices in the consumer goods industry. Formerly known as the Sustainable Apparel Coalition, Cascale owns and develops the Higg Index, which is exclusively available on Worldly, the most comprehensive sustainability data and insights platform. Cascale unites over 300 retailers, brands, manufacturers, governments, academics, and NGO/nonprofit affiliates around the globe through one singular vision: To catalyze impact at scale and give back more than we take to the planet and its people. LinkedIn | X | Instagram | Facebook | YouTube View additional multimedia and more ESG storytelling from Cascale on Contact Info:Spokesperson: CascaleWebsite: Email: info@ SOURCE: Cascale View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Textile and garment sectors boost exports
Textile and garment sectors boost exports

The Star

time06-05-2025

  • Business
  • The Star

Textile and garment sectors boost exports

As of April 15, Vietnam's total textile and garment exports reached US$1.8bil. — VNA/VNS HANOI: Vietnam's textile and garment industry is pressing forward with steady growth and enhanced positioning in the global supply chain, thanks to timely strategies in response to ongoing international challenges. As of April 15, Vietnam's total textile and garment exports reached US$1.8bil, representing an 8.7% increase compared to the same period in 2024. Recent statistics from the General Department of Customs showed encouraging growth across key export markets. The US remains Vietnam's largest customer, with market share climbing from 36.3% to 38%, followed by gains in the European Union, from 9.1% to 9.4%, and Japan, from 10.8% to 11%. This growth is viewed as a positive signal, especially amid unpredictable market conditions and declining global consumer demand, impacts by the United States' reciprocal tax policy. Challenges surfaced in early April when the United States announced a temporary 10% tariff on Vietnamese textile and garment imports, causing disruption in orders and uncertainty across the sector. The 90-day delay in imposing tariffs on import goods is being viewed as a good time for enterprises to accelerate production and exports. Industry experts anticipate the latter half of 2025 to be particularly difficult, marked by unpredictable demand and ongoing trade tensions. In response, many businesses have begun formulating contingency plans while closely monitoring negotiations between Vietnam and the United States over tariffs. Vietnam's garment companies are pursuing diversification strategies, expanding into new markets, strengthening domestic sales and improving raw material management. They are also investing in services, workforce training and retail operations to enhance overall resilience. Garment 10 Corp, reported 1.25 trillion dong (US$48mil) in revenue during the first quarter, a 12% increase year-on-year. Hung Yen Garment Corp (Hugaco) recorded a 10% revenue increase and confirmed sufficient orders through the end of July, with negotiations ongoing for the remainder of the year. Hugaco chairman Nguyen Xuan Duong warned, though, that unequal tax policies among competing textile-exporting nations could erode Vietnam's competitiveness, shifting orders to countries with lower costs. According to the Vietnam National Textile and Garment Group (Vinatex), the 90-day suspension period for US tariffs presents a crucial opportunity for Vietnam's manufacturers to ramp up production and exports. Although garment orders remain relatively stable, upstream segments such as the yarn industry have started to experience strain, with some companies halting operations due to supply chain bottlenecks. This underscores the need for a more integrated and self-reliant industry framework. The chairman of the Vietnam Textile and Apparel Association (Vitas), Vu Duc Giang, emphasised the importance of market agility. With 22 new-generation free trade agreements either active or pending, Vietnamese companies are well-positioned to diversify both clientele and product lines. This is a highly critical factor in reaching the sector's US$48bil export target for the year. Vinatex chairman, Le Tien Truong, said: 'Companies should maximise productivity in the second quarter by extending regulated overtime, reorganising production lines and securing reserves to weather the uncertainties in the latter half of 2025.' He highlighted the necessity of meeting current orders efficiently to demonstrate reliability and build credibility with international clients. Truong also emphasised transparency in sourcing and compliance with anti-fraud regulations. Vinatex is actively encouraging internal material sourcing, market-by-market risk assessments and broader efforts to diversify products and partners to mitigate market dependencies. — Viet Nam News/ANN

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