Impact of EU Sustainable Development Regulations on Vietnam’s Textile and Garment Exports: Challenges and Policy Implications

Abstract

This study examines the impact of European Union (EU) sustainability regulations on Vietnam’s garment exports (HS codes 61–63) during 2023–2025, focusing on market access conditions, trade dynamics, and enterprise adaptation. This study combines an analysis of key EU policy frameworks, including the European Green Deal, ESPR, REACH, the Digital Product Passport (DPP), and Extended Producer Responsibility (EPR), with secondary trade data from ITC Trade Map. The findings show that Vietnam’s garment exports to the EU increased from USD 6.996 billion in 2023 to USD 9.062 billion in 2025, while its share of total EU imports increased only marginally from 3.32% to 3.81%. This trend suggests that EU sustainability regulations have not been accompanied by an immediate contraction in Vietnam’s exports. Rather, they are increasingly becoming structural conditions that influence competitive dynamics by raising requirements related to sustainable materials, chemical safety, digital traceability, and producer responsibility. To overcome compliance bottlenecks, the paper proposes policy solutions at two levels: macro-level institutional, financial, and infrastructural support, alongside enterprise-level investments in technological upgrading, sustainable material sourcing, data governance, and circular supply chain management.