Digital Product Passports and a New Shift in the Textile Industry

The textile industry is entering a phase in which the information accompanying a product may be nearly as important as the product itself. In the future, a shirt, pair of trousers, or accessory will need to meet not only requirements for design, quality, and cost, but also provide sufficiently clear data about its materials, origin, production process, and options for handling it after use.

This trend is associated with the emergence of digital product passports, commonly known as Digital Product Passports. This is an electronic data system that stores and shares information related to a product throughout its life cycle. For textiles, the data may include fiber composition, raw material sources, the proportion of recycled materials, care instructions, and the product’s potential for repair, reuse, or recycling.

The European Union is developing a policy framework to promote this model through the Ecodesign for Sustainable Products Regulation, enacted in 2024. Although the specific requirements for each product group will depend on subsequent implementing legislation, the overall direction is already clear: products placed on the European market will increasingly have to demonstrate characteristics related to durability, circularity, and environmental impact.

Digital Product Passports change the way textile goods are viewed

In traditional supply chains, information is often fragmented among multiple parties. Fiber producers hold data on incoming raw materials; textile mills know about the fabric-making process; garment manufacturers manage production information; and brands are responsible for design, distribution, and marketing. End consumers usually see only the composition label and washing instructions.

Digital Product Passports aim to connect these layers of information in an electronic record. The level of detail may vary depending on regulations and product groups, but the general principle is that data must be accessible, verifiable, and updated by appropriate stakeholders.

For textile businesses, this creates an important change: data is no longer merely a tool for internal management or order audits. Data becomes part of a product’s value and may directly affect access to markets.

For example, a brand that wants to make a claim about the proportion of recycled fibers will need documentation proving the source of the materials and the blending process. An importer seeking to assess a product’s recyclability needs to know how many types of fibers it contains, whether there are components that are difficult to separate, and which ancillary materials were used. Collection or recycling facilities also need information different from that required by consumers, such as how to dismantle or sort the product.

Thus, a passport is not simply a QR code attached to a label. The displayed code is only the gateway to access; the core value lies in the quality, consistency, and verifiability of the data behind it.

New requirements for textile supply chains

From traceability to verifiability

Many textile businesses already carry out traceability to some extent, particularly for materials requiring certification or for orders from international brands. However, traceability and Digital Product Passports are not exactly the same.

Traceability generally focuses on identifying where materials or production stages have passed through. A product passport has a broader scope, including information on durability, repairability, length of use, chemical composition, and post-consumer treatment options if such data is required.

This requires businesses to control data across multiple stages. Information about fiber composition at the raw-material purchasing stage must match the data on production forms, testing records, and finished products. Changes in suppliers, fiber-blend ratios, or types of ancillary materials must also be recorded rather than updated only through scattered email exchanges.

For factories handling many product codes, this is a significant challenge. An order may change in color, fabric structure, ancillary materials, or fiber source at the customer’s request. If the data system is not designed from the outset, the business may face difficulties when it has to trace information back to individual batches.

Data between partners must be compatible

Another issue is the compatibility of different systems. Fiber suppliers, textile mills, dyeing facilities, garment manufacturers, brands, and logistics providers may use different software. If each party stores data in its own format, compiling a product record will take considerable time and may easily result in discrepancies.

Therefore, digital transformation in textiles is not only about purchasing additional software. Businesses need to establish consistent methods for assigning material codes, batch codes, and product codes, as well as principles for updating data. Common standards for product identification, data exchange, and access permissions will play an important role.

Information also needs to be layered. Consumers may need to know the composition, care instructions, and how to handle the product. Regulatory authorities may need data on compliance with regulations. Supply-chain partners require more detailed technical information. Not all commercial data should be made public, so businesses must distinguish between transparency and the protection of trade secrets.

Product design will be directly affected

A product passport has limited meaning if the product itself is not designed to be more durable, easier to repair, or easier to handle after it is discarded. Therefore, data requirements may lead to changes at the design stage.

Designers may have to consider the number of fiber types in a product, how ancillary materials are attached, whether components can be removed, and how easily materials can be sorted. A product made from a blend of multiple fibers may offer suitable performance characteristics, but it may also be more difficult to recycle. Similarly, coatings, adhesives, zippers, or decorative details may affect end-of-life treatment processes.

This does not mean that every product must use a single type of fiber or eliminate blended materials entirely. Design decisions also depend on function, durability, feel, and safety requirements. However, businesses will have to assess the impacts of material choices more fully instead of focusing only on purchase prices and production capacity.

Durability will also become an aspect that needs to be demonstrated more clearly. A product with a long useful life may reduce the need for new purchases, but claims about durability must be based on appropriate testing methods. Businesses with testing data, quality-control procedures, and consistent production records will have an advantage when markets demand evidence.

Impact on Vietnam’s textile businesses

Vietnam is a major link in the international apparel supply chain, but most businesses still operate under a contract-manufacturing model, with limited decision-making authority over design and branding. In this context, the impact of product passports will differ among groups of businesses.

Factories working directly with global brands are likely to receive early requests for data on materials, emissions, chemicals, and production conditions. They may have to connect their management systems with customers’ platforms, standardize raw-material records, and demonstrate their control capabilities for each batch.

Small and medium-sized enterprises may face greater pressure because their technology resources and data personnel are limited. However, preparation does not necessarily have to begin with a complex system. Businesses can start by creating a standardized material catalogue, digitizing testing records, managing batch codes, and recording changes in production.

The important point is that data must be created where it arises. If employees only re-enter information at the end of the process to meet customer requirements, the risk of missing or inaccurate data will be higher. Forms, identification codes, and verification procedures need to be integrated into the daily activities of purchasing, warehousing, technical, quality, and production departments.

Investment in data can also bring benefits beyond compliance. Accurate material records help businesses reduce the time needed to trace defects, compare suppliers, and control changes in orders. Better production data also supports cost calculations, inventory management, and faster responses when customers request information.

Risk of stratification in the supply chain

One risk that needs to be monitored is the growing divide between businesses capable of meeting data requirements and those without sufficient resources. If brands work only with suppliers that already have complete traceability and reporting systems, businesses that are slow to transition may lose opportunities to participate in certain orders.

To limit this risk, the transition should be carried out according to a roadmap. Brands and suppliers should agree on a minimum data set, an implementation timeline, and technical-support mechanisms. Industry associations, standards organizations, and regulatory authorities can also provide support through common guidance, training, and solutions suited to the scale of each business.

From a policy perspective, it is important to avoid allowing each customer to introduce a completely different set of requirements. If businesses have to enter the same information into multiple platforms that are not connected, compliance costs will rise while data quality may not necessarily improve.

Will consumers actually use the data?

Digital Product Passports are often expected to help consumers make more responsible choices. When scanning a code, they may access information about a product’s composition, origin, or care instructions. However, having data does not mean that consumers will read and use all of it.

Information needs to be presented concisely, clearly, and in a way that is relevant at the time of purchase. Highly technical data can be provided in a separate information layer for retailers, regulatory authorities, or recycling facilities. If the interface is too complex, the passport will become an administrative requirement rather than a tool that supports decision-making.

Businesses also need to be careful with environmental claims. The fact that a product contains recycled materials does not automatically prove that it has a lower environmental impact in every case. The assessment also involves durability, production processes, transportation, use, and post-consumer treatment.

Transparency must therefore be accompanied by explanations provided in the right context. Information may help consumers understand a product better, but it should not be presented in a way that creates an impression broader than the available evidence.

What businesses should prepare

Before specific requirements are applied to each product group, textile businesses can take several foundational steps.

First, they need to map the supply chain’s data. Businesses should identify what information is currently available, what information is held by partners, which data has not been verified, and which data needs to be updated for each batch.

Second, they need to standardize their catalogues of materials and ancillary materials. Commercial names, technical names, product codes, and composition ratios should be managed according to a consistent principle. Changes in suppliers or blending formulas should also be recorded.

Third, businesses should assess the readiness of their suppliers. A material record is reliable only when the input data can be checked. Future partner selection will not be based solely on price, quality, and delivery time, but also on the ability to provide information.

Fourth, businesses need to train employees outside the information technology department. Purchasing, warehouse, technical, quality-control, and production staff can all create or distort data. Digital transformation is effective only when operating procedures and the responsibilities of each position are clearly defined.

Finally, businesses should monitor implementing legislation related to each product group in export markets. The general legal framework may already have been enacted, but detailed requirements, data standards, and implementation dates need to be determined for each stage. Policy directions should not be turned into specific timelines without an official basis.

Digital Product Passports will not solve the textile industry’s problems on their own. They cannot replace sustainable design, resource-efficient production, chemical controls, or post-consumer collection systems. However, they can create a data foundation through which these efforts can be demonstrated and connected throughout the entire product life cycle.

For Vietnamese businesses, early preparation does not necessarily mean immediately investing in expensive technology. A more practical step is to clarify the data they already have, standardize material information, and build verifiable traceability capabilities. As market requirements shift from claims to evidence, businesses with reliable data will be better positioned in a textile supply chain moving toward greater transparency and circularity.