Page 326 - Ebook HTKH 2024

industry currently employs about 3 million industrial workers, accounting for over 10%
of the country's industrial labor force.

Like many other countries, increasing concern for environmental information by
stakeholders has created pressure on textile enterprises to implement environmental cost
accounting (ECA).
Most textile enterprises in Northern Vietnam are small to medium-sized, with
outdated production technology that consumes a lot of energy. The majority of these
enterprises only engage in one stage of processing, unable to complete the closed-loop
production of finished products or build supply chains. The energy usage structure of
textile enterprises in Northern Vietnam mainly involves electricity (70%), fossil fuels

(29%), and the rest biomass energy. Energy control and savings processes are not given
much attention by business owners. Therefore, improving production technology
towards green, clean practices, and reducing energy consumption is essential to enhance
competitiveness. The trend of developing the textile industry will continue for many
years, bringing significant socio-economic benefits but also posing considerable
environmental impacts.

From the experience of applying environmental cost accounting in other countries,
some lessons can be drawn for textile enterprises in Northern Vietnam as follows:
- Raising Management Awareness about Environmental Cost Information:
Awareness of environmental cost information (regulations on the environment, green
competition, stakeholder concerns about the environment, clean technology, etc.) from
management is a factor that increases the application of ECA for internal management
functions. When managers enhance their environmental awareness, they will focus on

decisions aimed at cleaner production or environmental improvement measures.
Therefore, increasing managers' awareness of environmental information is an issue that
needs to be addressed early as the inception of ECA is proposed by management,
especially management accountants and environmental managers.
- Commending and Expanding Individuals and Organizations with Good
Environmental Responsibilities: Organizing forums and workshops as bridges for textile

enterprises to access, exchange, and learn from the experience of applying ECA.
Research results show that 25 out of 25 managers in textile enterprises in Northern
Vietnam are always aware of the benefits of ECA. However, they are not truly willing
to incur additional costs to implement it because they have not really seen the financial
benefits of applying ECA. Therefore, through seminars and forums, enterprise managers
can access exemplary businesses that have achieved financial benefits from applying
ECA, changing their perceptions and mindsets, thus motivating managers to apply ECA
in their own enterprises.

Providing Accounting Information on Environmental Costs in Annual Reports and
Sustainable Development Reports: Creating a good working environment, promoting
environmentally friendly production processes, and developing green products.

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