Although the EU has 'softened' its green policy implementation, this is only a temporary measure, and textile and garment enterprises still need to urgently meet regulations and standards.
'Softening' green policy
At the Trade Promotion Conference in February 2025, Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and the EU informed that, in response to new market developments, in the period 2024 - 2029, the EU has made fundamental changes in its green policy perspective and used more "flexible" tools to change business behavior. Currently, the European Green Deal Program, with many high requirements on the environment and sustainable development, has gradually shifted to "softer" policies.
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| Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and EU |
It is expected that the EU will implement comprehensive programs, such as: Focusing on simplifying administrative procedures, tax procedures, green development according to business capacity, instead of "rigid" application.
Accordingly, Vietnamese enterprises can benefit from the change in the application deadline of the EUDR (Anti-Deforestation Regulation) to December 2025; reviewing the CBAM (Carbon Border Adjustment Mechanism) to reduce the number of enterprises expected to be affected to 20%.
The EU is a very important export market and accounts for the second largest proportion of the total export turnover of the textile and garment industry. In the first two months of the year, Vietnam's textile and garment exports to some markets in the EU remained stable.
Of which, the Belgian market reached 17.9 million USD in February 2025, 50.3 million USD in the first 2 months of the year; Denmark reached 2.8 million USD and 10.6 million USD; Germany 40.8 million USD and 107 million USD; Netherlands 64 million USD and 148 million USD; Italy 19.8 million USD and 47.5 million USD...
Mr. Tran Ngoc Quan also said that the Vietnam - EU Free Trade Agreement (EVFTA) has been contributing a lot to Vietnam - EU trade.
Since the EVFTA came into effect, Vietnam’s share of total EU textile and garment imports from outside the bloc has increased from 3.3% to 4.3%. Vietnam has risen to the 6th position in the list of largest textile and garment suppliers to the EU after China, Bangladesh, Türkiye, India and Pakistan.
Urgent compliance
Although the EU tends to "soften" and extend the roadmap for implementing green policies, experts still recommend that these measures are only temporary. In the long term, green policies will continue to be implemented by the EU. Therefore, meeting green standards and regulations is necessary for domestic textile and garment enterprises.
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| Textile and garment enterprises are advised to speed up the progress of meeting green regulations in the EU to maintain and expand market share. Photo: Nguyen Huyen |
On the other hand, in the context that the EU is promoting negotiations for free trade agreements with many other countries, if Vietnamese enterprises do not increase trade promotion and dominate the market, in just 1 or 2 years they will face great competitive pressure from countries that have trade agreements with the EU. " Many free trade agreements are expected to be negotiated by the EU this year and next year ," said a representative of the Vietnam Trade Office in Belgium and the EU.
Protectionism is on the rise in many markets, including the EU. If Vietnamese businesses export goods without control or commit trade fraud, or transship goods from EU countries that are restricting trade, it will directly affect export activities.
As such, it can be seen that the EU's policy adjustments are actually temporary measures, and there is no guarantee that the EU will not re-apply environmental measures. Vietnamese businesses should take advantage of this time to comply with EU regulations.
“ The Vietnam Trade Office in the EU has received a number of requests from the EU Textile and Apparel Association and a number of businesses asking the Ministry of Industry and Trade to discuss with the Ministry of Agriculture and Environment to consider including recycled fabrics in the import schedule for use in Vietnam. Currently, the Ministry of Agriculture and Environment has included a number of recycled items in the import schedule, but mainly iron, steel, plastic and paper, ” said Mr. Tran Ngoc Quan.
Regarding this issue, recently, the Swedish Syre Group had a working session with the Ministry of Industry and Trade to propose investing in a polyester fiber recycling complex factory project in Binh Dinh province.
Syre Group representatives also proposed support in terms of mechanisms and policies related to the implementation of textile waste recycling projects, guidance on procedures for importing recycled materials and environmental impact assessment.
Affirming support for the project investment, however, Deputy Minister of Industry and Trade Truong Thanh Hoai also clearly expressed his view that in principle, the Ministry of Industry and Trade supports the project, but this is a special investment project, according to Vietnamese law, there must be a special resolution for this project.
" This is a special, pilot project, and there must be a strict control mechanism for used materials. After the resolution is issued, the Ministry of Industry and Trade will amend Circular No. 08/2023 on amending and supplementing a number of articles regulating the detailed list according to HS codes of exported and imported goods ," Deputy Minister Truong Thanh Hoai stated.
The successful implementation of Syre Group’s polyester fiber recycling complex project will increase the capacity of domestically produced fabrics, helping Vietnamese textiles and garments meet the traceability requirements of the EVFTA. At the same time, it will meet the EU’s green production standards, using recycled materials.
| Green policies such as: EU Green Deal, product passport, eco-design, CBAM... are considered difficult standards, requiring a lot of effort and cost for textile and garment enterprises to implement. |
Source: https://congthuong.vn/eu-noi-long-quy-dinh-xanh-doanh-nghiep-det-may-co-de-tho-377556.html
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