Vietnamese Textiles and Apparel Facing New Requirements for Green Design and Digital Product Passports

For many years, green production requirements in the textiles and apparel industry have mainly been reflected in brand standards, chemical regulations, labor conditions and emissions-reduction targets. However, new regulatory approaches in Europe are taking these criteria further into the product itself: how an item is designed, how much material it uses, whether it can be repaired or recycled, and how lifecycle data is stored.

This is a significant change for Vietnamese businesses exporting clothing and household textiles or participating in the supply chains of international brands. Companies must not only demonstrate their ability to manufacture according to orders, but also gradually prove the origin of materials, environmental characteristics and their capacity to meet technical requirements that vary from market to market.

The new focus is not on a single certification label. It is a combination of product design, data management, material use, chemical control, energy, water and plans for handling products after consumers no longer use them. For the textiles and apparel industry, this process creates additional costs and requires activities to be reorganized, but it also opens opportunities for businesses capable of supplying more transparent, durable and higher-value products.

Ecodesign shifts the focus from the factory to the product’s entire lifecycle

The European Union’s Ecodesign for Sustainable Products Regulation creates a legal framework for the EU to establish sustainability requirements for various product groups. The regulation does not focus only on the production stage, but covers the entire process from design and material selection to product use, maintenance, repair, reuse and end-of-life treatment.

Textiles, especially clothing and footwear, are among the product groups that the EU has identified as potentially being prioritized for the development of specific requirements. This does not mean that every textile and apparel company must immediately apply the same set of criteria. Detailed requirements will depend on implementing regulations for each product group. Nevertheless, the policy direction is clear: products sold in the EU market will increasingly need to demonstrate durability, efficient resource use and greater information transparency.

What is notable is that this approach places responsibility earlier in the value chain. If a shirt is designed using a mixture of multiple fibers that are difficult to separate, uses accessories that cannot be removed, or lacks clear data on its composition, recycling later will be more difficult. By contrast, design that takes durability, repairability and material separation into account can help reduce pressure at the end-of-life treatment stage.

Digital product passports will make data part of the product

One of the important tools in the new policy framework is the digital product passport, commonly known as the Digital Product Passport. In essence, this is a collection of electronic data linked to a product or product group, providing information related to its characteristics, materials, origin or treatment options as required by specific sectoral regulations.

For textile and apparel companies, digital passports may change the way information is managed throughout the supply chain. Data will no longer be used only to complete an individual customer’s audit documentation. Companies may need to link information on fibers, fabrics, dyes, trims, finishing processes, energy use and relevant certifications to each product line or item code.

A digital product passport should not be understood as the publication of all trade secrets on a public system. The amount of data to be shared, the parties entitled to access it and the way it is stored will depend on specific regulations. However, the general principle indicates that information previously scattered across multiple departments will need to be standardized, verified and made more readily traceable.

This represents a significant challenge for contract manufacturers. A factory may have good control over cutting, sewing and finishing, but may not have complete data on the origin of materials specified by the customer or supplied by multiple tiers of vendors. If input data is inconsistent, companies will face difficulties when required to substantiate information for each order or market.

What do textile and apparel companies need to prepare?

Preparing for green design requirements should not begin with purchasing another piece of software or obtaining another certification. The first step should be to map the data and identify which stages of the value chain the company currently controls.

Review materials and traceability

Information about fiber composition is the foundation for many requirements related to durability, recycling and environmental footprints. Companies need to clearly distinguish virgin fibers, recycled fibers, blended fibers and materials from different sources, while retaining appropriate evidence rather than relying solely on supplier commitments.

In practice, a product may consist of the main fabric, sewing thread, zippers, buttons, labels, coatings, adhesives and packaging. If only the fabric composition is identified while accessories are ignored, the material record will not fully reflect the product’s construction. This classification also helps companies assess the feasibility of disassembly, repair or recycling at a later stage.

Companies do not necessarily need to change their entire material portfolio at once. A more practical approach is to select several key export product groups for testing, then identify data gaps, errors in the material approval process and the costs required for expansion.

Integrate environmental requirements into product design and development

Many garment factories become involved only after a design sample has been approved by the customer. This model limits the supplier’s ability to influence outcomes because decisions on fabric type, product structure and accessories have already been finalized. In the new context, companies with capabilities in sample development, material consulting and environmental feasibility assessment will be better positioned in the supply chain.

Sustainable design does not mean that every product must use one type of fiber or completely eliminate synthetic materials. Each option needs to be assessed according to its intended function, durability, safety requirements, washability, cost and post-use treatment options. A product with a high proportion of recycled material that wears out quickly may not necessarily produce a better result than a product with a longer lifecycle. Therefore, assessments should be based on data and the specific purpose of use, rather than on a single promotional indicator.

Companies also need to consider details that are often regarded as minor during sample development. Removable structures, replaceable zippers, seam durability, care instructions and the use of single-material components can directly affect the ability to extend a product’s lifecycle or process it after use.

Standardize production data instead of collecting it for each audit

Information on electricity, fuel, water, chemicals and waste is often stored by different departments using different forms. If the data does not have consistent definitions for the reporting period, units of measurement, factory boundaries and calculation methods, comparisons between orders will not be reliable.

Companies need to clearly distinguish which data is directly measured, which is provided by suppliers and which is calculated using internal methods. Changes in machinery, electricity sources, capacity or finishing processes also need to be recorded to avoid creating data series that cannot be explained.

Investment in digitalization is not aimed solely at meeting the requirements of European customers. A good data system can also help companies identify energy-intensive processes, monitor defect rates, reduce material use and plan production more accurately. However, software only has value when accompanied by control procedures and clearly assigned responsibility. Incorrect data or missing documentation does not become reliable simply because it is stored on a digital platform.

Impact on costs and the position of Vietnamese suppliers

Meeting the new requirements will certainly create costs. Companies may need to invest in testing, data management systems, employee training, equipment improvements, supplier assessments and the redesign of certain products. These expenses are particularly significant for small and medium-sized businesses, which often do not have dedicated product development or data management departments.

However, viewing the issue only through the lens of compliance costs would overlook changes in supplier selection criteria. When brands need to demonstrate that their products comply with sustainability regulations, they are likely to prioritize partners that provide stable data, respond quickly and control more stages of the process. Transparency capabilities can therefore become a competitive factor alongside productivity, price and delivery time.

For Vietnamese companies, the advantage does not come only from production scale. Some businesses may differentiate themselves through weaving, dyeing, finishing, sample development, recycled-material processing or domestic supply chain management capabilities. The ability to provide complete and consistent material documentation can also reduce the time spent communicating with customers when traceability is required.

By contrast, factories that only handle sewing and depend entirely on externally specified materials and components will have less ability to act proactively. This does not mean that the contract manufacturing model will lose its role, but companies will need to upgrade their coordination, documentation management and input control capabilities. In many cases, a supplier’s value will be assessed not only by the volume of products delivered, but also by its ability to explain where products came from and what impacts were involved in making them.

Green production should not be equated with using a single type of material

The textile and apparel market is seeing many claims about recycled fibers, bio-based fibers, single-material products and products capable of biodegrading. These approaches may contribute to circularity goals, but they should not be viewed as a universal answer for every product.

Environmental performance depends on many factors: the source of raw materials, production processes, durability, frequency of use, washing methods, transportation distances and the ability to recover products after use. A product that replaces one material but reduces durability or creates additional difficulties during treatment may not necessarily deliver an overall benefit.

Therefore, companies should avoid broad claims such as “environmentally friendly” when they are not accompanied by a defined scope, methodology and supporting evidence. A more cautious communication approach is to clearly describe what proportion of each material the product uses, how the data was verified and what the limitations of the claim are. This helps reduce the risk of being viewed as making misleading promotional claims while creating a foundation for long-term customer relationships.

Three issues the industry needs to monitor in the coming period

First are the specific requirements for each product group. The EU’s general legal framework has only established the foundation; the criteria applied in practice will determine what types of data companies must provide, by what deadlines and at what level of detail. Companies need to monitor information from regulators, industry associations and customers rather than waiting until an order changes before beginning preparations.

Second is the consistency between certification systems and the individual requirements of each brand. If every customer uses a different form, calculation method or platform, reporting costs can rise quickly. Companies and industry associations have a common interest in promoting compatible approaches, reducing duplicated inspections and improving the recognition of data.

Third is coordination capacity within the supply chain. A brand cannot build a reliable product record if fiber, textile, dyeing, garment and logistics suppliers do not share consistent data. Conversely, a factory will also struggle to comply if customers change requirements without agreeing on the scope of information and verification responsibilities.

For Vietnamese textile and apparel companies, an appropriate step at this point is to start with product lines that have stable customers and relatively complete data. After testing, companies can expand to other product groups while incorporating traceability, chemical, energy and material requirements into purchasing procedures. A phased approach helps limit scattered investment while still building long-term compliance capabilities.

Green design and digital product passports will not immediately replace traditional factors such as price, quality or delivery time. But they are adding a new layer of criteria to competition in the textile and apparel industry. Companies that recognize data and circularity as part of their production capabilities, rather than merely as compliance paperwork, will have more opportunities to maintain their positions in a supply chain moving toward greater transparency and more efficient resource use.