Vietnam footwear and apparel circularity study

The “Mekong Climate-Smart Manufacturing Advisory Program” of the International Finance Corporation (IFC), a member of the WB Group, aims to develop and invest in the footwear and apparel circularity value chain in Vietnam, with stages ranging from early-stage project development and advisory support to those needing immediate investment. The assignment targets to develop a market study to facilitate circular economy practices of the footwear and apparel sectors in Vietnam with the ultimate objective being to identify a business case to leverage the circularity of the post-manufacturing waste generated from these sectors and to facilitate the establishment of recycling hub(s) or any other feasible engineered solutions to move the sectors towards a circularity pathway.

Main activities of the assignment 

• Analytical work on footwear and apparel value chain mapping and circularity marke to cover (I) post-industrial waste material flow analysis; (ii) value chain mapping including the supply and demand for the recyclable and recycled post-manufacturing waste; (iii) targeted national/provincial regulatory and operational gap analysis in Vietnam related to waste management; and (iv) assessment of investment size required for the recycling of post-manufacturing waste of the 02 sectors;
• Engage with stakeholders across the value chain to validate results and data; and
• Support IFC in identifying the investment opportunity for recycling of post-industrial material waste from these sectors and help develop a business case and value proposition for the recycling hub(s).

Activities in 2023:

• Assessment of legislation and enforcement related to waste management and recycling to propose some recommendations for promoting waste circularity;
• Collection of sectorial data related to post-production waste generation and current management, recycling and treatment methods;
• Stakeholder interviews and surveys, including brands, manufacturing businesses, associations, and appropriate recycling technology suppliers; and
• Material flow analysis and geographical factors related to recycling hubs.

Next step

• Complete the 03 component reports to be submitted to IFC.