The report, titled “Vietnam National Report: Macroeconomic, Socioeconomic and Industry Analysis”, provides an in-depth understanding of Vietnam’s economic and industrial landscape.
This is the first in a series that integrates insights from Cascale’s sustainability assessment tool, HIGG Facility Environment Module (FEM), which is exhibited only in secular terms.
Analysis of over 1,200 proven HIGG FEM submissions starting in 2023 shows a huge carbon footprint due to coal use, with 12% of facilities using coal directly, while 94% rely on Vietnam’s coal high grid.
Still, renewable energy accounts for less than 2% of energy consumption within the industry, which outlines a wealth of opportunities for transitioning to green practices in the industry’s decarbonization roadmap (IDR).
According to the report, Vietnam’s economic forecasts show a 6.5% growth by 2025, surpassing its region.
Manufacturing remains the cornerstone of this growth, accounting for nearly 23.88% of GDP in 2023. Foreign Direct Investment (FDI) also reflects strong investor confidence, recording $31.4 billion in the first 11 months of 2024.
The apparel and footwear industry generates 3 million workers and is estimated to contribute US$7.1 billion in export revenue to Vietnam in 2024.
However, it also faces serious sustainability issues such as high energy use and carbon emissions.
Vietnam has pledged to increase its renewable energy usage by 65-70% by 2045, aiming to reduce greenhouse gas emissions by about 70-80%, indicating its commitment to decarbonizing supply chains consistent with IDR.
IDR ensures efficient allocation of resources, thereby achieving low-carbon procurement and other advantages. This involves focusing on key 10% of sites in the textile and apparel supply chain, some of which are located in Vietnam, as more than 80% of global manufacturing emissions are available in these supply chains.
The report recommends prioritizing the absorption of renewable energy and the implementation of circular economy practices.
It urges brands to build lasting partnerships with supply chain collaborators that will promote equitable and catalyse a reformist approach to business. Emphasize investing in employee skills, especially in areas related to sustainability and environmental technologies.
The report also recommends staying aware of changes in Vietnam’s regulatory landscape to ensure compliance with regulations and leverage emerging market prospects.
