Home / Knowledge / News / Apparel/Garments / IFC helps strengthen Vietnam's apparel industry

IFC helps strengthen Vietnam's apparel industry

15
Jan '19
IFC helps strengthen Vietnam
The International Finance Corporation (IFC) has been implementing the Vietnam Improvement Program to empower textile and apparel companies to upgrade their machinery and equipment to turn more sustainable, energy-efficient and globally competitive, apart from boosting their revenue from exports and offering them financing routes through its client banks.

The Vietnam Improvement Program, an initiative to improve resource efficiency in the local apparel, textile, and footwear sector, works with factories that supply to large retailers and clothing companies.

Since 2016, the program has enabled 70 factories in the country to invest $26 million in resource efficiency measures, helping them save $24 million in water, energy, and chemical operating costs, according to an IFC press release.

Through IFC support, Phong Phu International (PPJ), one of Vietnam’s leading textile factories, brought laser machines to ‘dry process’ denim apparel, a technique used to achieve the cool, faded look some consumers crave.

With the lasers, around 300 jeans can be dried in a day, a huge jump in productivity from the labour-intensive manual process, which allows for only 20 to 30 daily, and exposes workers to harmful chemicals.

Apart from landing more orders, the measures helped PPJ slash its energy consumption by almost 7 million kilowatt hours per year, and use 200,000 cubic meters less water annually. This allows it to save as much as $700,000 a year.

Vietnam’s textile and garment factories are also among the world’s most energy-intensive ones, using up one tenth of the total energy consumed by all industries in the country, says IFC.

When the program’s recommendations are fully implemented over the next three years, the $40-million capital investment—required for retrofits and more efficient equipment—could collectively save 4 million cubic meters of water and curb 788,500 tons of greenhouse gas emissions annually.

This is equivalent to removing 1.1 million new cars from the road. Energy consumption in this sector alone could decrease nationwide by 30 per cent with technology upgrades and improved efficiency, claims IFC.

On IFC’s recommendation, Samil Vina Co. Ltd, another strategic supplier for Target, sought a bank loan to install more advanced dyeing machines, which use significantly less water, energy, and chemical to dye textile.

With IFC’s advice, Samil Vina borrowed $4 million from Vietnam Industrial and Commercial Joint-Stock Bank, an IFC client that finances energy-efficiency projects at affordable terms. Improvements followed as soon as the upgrades were installed. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 10th Jul 2020

US, Kenya launch negotiations for free trade agreement

United States trade representative Robert Lighthizer and Kenya...

Pic: Shutterstock

E-commerce | On 10th Jul 2020

Commonwealth, ILO join partnership for inclusive e-com

The global 'eTrade for All' initiative, which aims at making digital...

Pic: Nike

E-commerce | On 10th Jul 2020

Nike Rise unveiled in Guangzhou as new store concept

Nike recently introduced Nike Rise, a first-of-its-kind store...

Interviews View All

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Marazban F Velati, Sutlej Textiles & Industries limited

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search