As the world’s third-largest garment exporter and a key supplier to the U.S., EU, and CPTPP markets, Vietnam enjoys the advantages of 16 free trade agreements in force, yet now faces mounting pressure as new sustainability and due diligence frameworks redefine global market access.

To stay competitive, Vietnam’s garment industry must transition from volume-driven production to green, traceable, and circular operations, with access to green finance as the critical enabler. Recognizing this momentum, “Financing Vietnam’s Leap in Garment Sustainability,” co-hosted by Chan Chao International and CCX Partners on October 17 during the Vietnam International Textile and Garment Exhibition (VTG) 2025, brought together policymakers, financiers, manufacturers, academics, and innovators to explore how capital can accelerate this sustainability leap.

A Platform Converging Policy, Finance, Academia

Opening the Strategy Forum, Trinh Thi Thu Hien, Deputy Director General of the Agency of Foreign Trade (MOIT), offered strategic insights on the driving forces from free trade agreements and on elevating Vietnam’s garment export competitiveness through rules of origin compliance and tariff preference utilization.

“Vietnamese goods benefit from substantial advantages over those from countries without free trade agreements, particularly through preferential tariff treatment that enhances competitiveness in market access. The new-generation FTAs, however, extend beyond tariff benefits and rules of origin, encompassing deeper commitments on labor, environmental protection, and sustainable development.”

According to Trinh Thi Thu Hien, international rules are shaping the orientation for Vietnam’s textile and garment industry to adapt and advance toward the green transformation objective - considered a “motivating pressure” for the sector in the coming period.

Trinh Thi Thu Hien, Deputy Director General of the Agency of Foreign Trade, Ministry of Industry and Trade, addressing the Opening Keynote for the Seminar.

Maria Pateguana, Unit Head of Private Sector Development, VRM at the Asian Development Bank (ADB) Vietnam, highlighted: “Green is no longer a cost—it’s currency.”

She shared ADB’s efforts through the Trade and Supply Chain Finance Program (TSCFP), GS1 Carbon, and the SME Sustainability Standards Toolkit, aiming to help Vietnamese suppliers navigate ESG disclosure, digital product passports, and green financing eligibility.

From an impact investing perspective, Ms. Trang Ngo, Associate Vice President at the Impact Investment Exchange (IIX), highlighted how “Green and Orange Transformation” models are reshaping the future of inclusive, gender-smart investment across Asia’s apparel industry.

Closing the Strategy Forum was a lively discussion between Ms. Trinh Thi Thu Hien, Deputy Director General, Agency of Foreign Trade (MOIT); Dr. Rajkishore Nayak, Associate Professor at RMIT University; and Ms. Pham Thi Van Thanh, Branch Director, VietinBank South Saigon, offering complementary perspectives from policy, research, and finance. The discussion explored investment opportunities and FTA utilization via rules of origin, emphasizing how global sustainability frameworks such as the CSDDD and CBAM are reshaping Vietnam’s garment exports, while underscoring the need to leverage FTA advantages, scale up sustainable material innovation, and expand green financing solutions to support the industry’s transformation.

Innovation in Action: From Finance to Fabric

Pham Thi Van Thanh, Branch Director of VietinBank South Saigon, underscored VietinBank’s leadership in green finance, supporting apparel SMEs via its GreenUp program, alongside the recent introduction of the Sustainable Finance Framework.

A dynamic conversation unfolded between Mr. Kent Teh, Senior Director of the Tessellation Group, and Mr. Le Thanh Van, CEO and Founder of GUMAC, bridging global manufacturing expertise with local brand ambition. Tessellation emphasized that sustainability is not a cost but a competitive edge, sharing how it empowers SMEs and innovators with capital and know-how. GUMAC, in turn, reflected the aspirations of Vietnam’s emerging fashion brands seeking green finance, strategic partnerships, and global networks to scale their sustainable vision.

Toward a sustainable textile and garment value chain

As Chan Chao and CCX Partners look ahead to VTG 2026, the vision is set: “To build a platform where green capital meets manufacturing transformation, and where Vietnam’s next generation of apparel brands can thrive sustainably, competitively, and globally.”