A circular economy is a model that keeps products and materials in use for as long as possible, replacing the "take – make – dispose" chain. For textiles and garments, one of Vietnam's key export sectors, this is no longer an option but a condition for keeping the EU market.
Key takeaways
- By 2030 the EU wants textiles to be more durable, repairable and recyclable, and to use more recycled fibres.
- ESPR allows mandatory ecodesign requirements and a Digital Product Passport to be set; it bans large companies from destroying unsold clothing and footwear from 2026.
- Factories need to prepare: mono-material fabrics, certified recycled fibres, circular water and fabric offcuts, and batch-level traceability data.
How is the EU changing the rules?
The Strategy for Sustainable and Circular Textiles
Published in 2022, the strategy sets out a vision to 2030: textile products on the EU market must be durable, repairable and recyclable, use a high share of recycled fibres and be produced with respect for social rights and the environment.
ESPR and the Digital Product Passport
The Ecodesign for Sustainable Products Regulation (ESPR) has been in force since 2024. Textiles are a priority product group. Information on materials, origin and environmental impact will accompany products through the Digital Product Passport.
Extended producer responsibility (EPR)
The EU has agreed to bring textiles under EPR: brands contribute to the costs of collection, sorting and recycling. These costs will be passed back up the supply chain in the form of design and material requirements.
In a circular model, product data is worth as much as the product itself.
Practical solutions for Vietnamese factories
Design for a second life
Prioritise mono-material fabrics, reduce trims that are hard to separate, design for repair, and work with brands from the sample development stage.
Certified recycled materials
Recycled fibres need traceability certification such as the Global Recycled Standard (GRS) to prove their recycled content.
Circularity inside the factory
- Collect and sort fabric offcuts and roll ends for recycling instead of burning or landfilling them.
- Treat and reuse dyeing wastewater; control chemicals against the industry's restricted substances list (see water and waste management).
- Recover heat and optimise steam and energy use in dyeing and finishing.
Traceability and data
Shipment-level data (fibre source, weaving and dyeing mills, water, energy, emissions) is the "raw material" for the Digital Product Passport and for ESG reporting.
Links to the domestic legal framework
The Law on Environmental Protection 2020 and Decree 08/2022/ND-CP detailing the Law on Environmental Protection already apply recycling and waste treatment responsibilities to many product and packaging groups. Textile companies can start with their own packaging and industrial waste.
Frequently asked questions
What is a Digital Product Passport?
It is a set of electronic data attached to a product (usually accessed via a QR code), providing information on materials, origin, repairability, recyclability and environmental impact as required by the EU.
Where should small textile businesses start?
Start by measuring water, energy and waste at the factory and standardising raw material sourcing data by order, as this is the data customers ask for first.
Does a circular economy increase costs?
Some upfront investment increases, but circular water, energy and materials usually reduce operating costs while helping to retain orders from brands with sustainability commitments.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
