Tiếng Việt
The CPTPP Agreement will encourage businesses to adopt stringent standards on the environment, sustainability, and ESG governance (abbreviated for Environmental, Social, and Governance), including reducing carbon emissions.
The CPTPP Agreement is a high-standard free trade agreement signed in March 2018. It retains the content of the TPP Agreement while allowing member countries to temporarily suspend a few obligations to meet new circumstances. The CPTPP encompasses not only traditional areas such as tariff reduction, market access for services, intellectual property, and technical barriers but also addresses new issues like labor, environment, government procurement, and state-owned enterprises.
The CPTPP Agreement sets high standards for transparency and provides binding dispute resolution mechanisms. Member countries commit to eliminating nearly all import tariffs for one another on a scheduled timeline, liberalizing services and investment based on compliance with domestic laws, creating new business opportunities and benefits for consumers.
The CPTPP Agreement includes provisions and standards for sustainable development alongside the roadmap for tariff reductions. Member countries, such as Japan, Australia, New Zealand, Singapore, and Malaysia, are setting high standards for environmental protection and green development. For example, Japan promotes green procurement and prioritizes public procurement policies for environmentally friendly products. Australia enforces environmental protection standards and tightens regulations on hazardous substances. Singapore applies ISO 14024 standards for environmental protection and adheres to Euro 6 emissions standards.
The CPTPP Agreement encourages businesses to adopt rigorous standards on the environment, sustainability, and ESG governance, including reducing carbon emissions. Vinatex is urging textile and garment enterprises to establish specific goals in their business strategies to reduce carbon emissions. They are also promoting the use of natural and recycled materials and designing products in a circular economy framework. Simultaneously, they are increasing the use of clean energy, reducing reliance on fossil fuels, and saving energy.
Vietnam’s demanding export markets in the agricultural sector, such as Japan, Canada, Australia, New Zealand, and Singapore, are moving towards a circular economy, green economy, and green agriculture. Although mandatory regulations have not yet been issued, Vietnamese enterprises must invest now to develop exports without waiting for rules to be enacted. The Chairman of T&T Group gave an example of the requirement not to grow coffee on forested land. Enterprises need to meet this standard immediately to avoid losing time and export opportunities.
Many businesses in Vietnam are paying attention to the circular economy model to protect the environment and expand their export markets. The textile and garment industry is heavily impacted by these standards. The “green” factor is no longer an option but is becoming a requirement in key export markets for Vietnam’s textile and garment sector. Vinatex has identified sustainable development as a long-term strategy that cannot be instantly transformed. Enterprises must comply with customer and market requirements. A Vinatex representative emphasized that this is an opportunity to enhance value per worker. The goal of producing green products and new ecological designs is an opportunity, and the textile industry needs to seize this trend to adapt to the market. Vinatex’s representative, Mr. Vuong Duc Anh, stated: “Sustainable development is an irreversible trend in the textile and garment industry. We need to catch up with the market, but at the right time.”
Vietnamese textile and garment enterprises have transitioned to a green model to meet sustainability requirements and remain competitive. May 10 Corporation successfully fulfilled its 2022 goals with a total revenue of 4,500 billion VND, exceeding the plan by 18.42% and growing 27.93% compared to 2021, primarily thanks to exports. May 10 also received the title “Green Energy 2022” – the highest accolade in the industry – thanks to investments in green production solutions such as energy-saving, smart controls, and non-toxic raw materials and chemicals. The enterprise is ready to eliminate outdated technologies that fail to meet quality standards and harm the environment, adhering to CPTPP Agreement criteria.
In agriculture, TH Group is also interested in the circular economy model, particularly in waste and wastewater collection and treatment. TH Group’s projects in Vietnam and in the Russian Federation and Australia apply the circular economy model, from farm production to dairy products.
In the agricultural sector, Vietnam’s demanding export markets, including member countries of the CPTPP Agreement, are shifting towards a circular economy, green economy, and green agriculture. Mr. Nguyen Dinh Tung, Chairman of T&T Group, emphasized that Vietnamese businesses must invest now to develop exports rather than wait for mandatory regulations, as delays will result in lost export opportunities.
The CPTPP Agreement is driving businesses to adopt stringent standards on the environment, sustainability, and ESG governance (Environmental, Social, and Governance), including reducing carbon emissions. This encourages businesses in the textile and garment industry to set specific goals for carbon emission reduction in their business strategies. At the same time, companies need to transition to natural and recycled materials and design products aligned with the circular economy. Strengthening the use of clean and renewable energy while limiting the use of fossil fuels is also a self-regulatory measure for businesses amid economic integration.
Source: Compiled by NGO
