Page 424 - Ebook HTKH 2024

sustainable development reports have become important reports for textile and garment
enterprises. In addition, the basis for ESG reporting in the textile and garment industry

can be based on the VNSI standards set required by HOSE for listed companies in
Vietnam or ISSB - a new set of standards in the world (approved by the International
Sustainability Standards Board in February 2023, global sustainability reporting
standards were announced in June 2023). These two sets of standards are quite suitable
for the characteristics of Vietnam’s textile and garment enterprises. According to the
survey, some textile and garment enterprises are aiming for a production or service
supply process according to "green" standards and in line with sustainable development
strategies. New and big projects have prepared environmental impact assessment reports

according to the Law on Environmental Protection, ESG reports and conducted
environmental impact assessments. However, accountants of textile and garment
enterprises have mostly stopped learning and studying the above standards.
Regarding environmental management accounting, accounting at textile
enterprises focuses on the content of collecting and allocating environmental treatment
costs, controlling labor costs due to the characteristics of the textile industry, which is

that about 70% of textile products are processed goods, using imported fabrics and raw
materials, mainly from China and Korea according to VITAS and the proportion of labor
costs in product costs is quite large. The income from the environment is almost non-
existent. Environmental-related costs are generally reflected in management cost
accounts and economic managers cannot detect, cannot see the scale and nature of
environmental costs. In addition, accounts mainly record costs for dust collection, noise
control, wastewater treatment, etc... but have not recorded significant costs related to

troubleshooting and cleaning and handling costs in accidents, destruction of the
ecological environment, and living environment. About recovered and reused scrap after
the production process, the amount of recovered scrap from each production cycle
accounts for a relatively large proportion, but recovered value is currently not controlled
and treatment measures are not yet complete.
Regarding green finance for textile and garment enterprises, this industry is

among the 20 economic sectors that the State Bank of Vietnam is guiding credit
institutions to assess environmental risks when granting credit in the Handbook on
assessing environmental and social risks, issued in August 2018. Therefore,
environmental accounting of textile and garment enterprises has aimed to implement
green investment project criteria according to the provisions of the Law on
Environmental Protection to have a basis for accessing effective green credit policies.
However, the source of green finance to attract textiles is still lacking. Most enterprises
only use financial resources to invest in modern machinery to reduce emissions, use

solar energy in factories, and invest in wastewater systems. Meanwhile, research and
development of green materials is still limited because it requires technology and strong
chain linkages.

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