INTHEBLACK February 2025 - Magazine - Page 27
“Accountants and financial professionals can play a role
in identifying potential exploitation by scrutinising the feasibility
of very low garment prices in their clients’ financial data, for example.”
RACHEL REILLY, ETHICAL CLOTHING AUSTRALIA (ECA)
ESG APPROACH TO FASHION IN ASIAN ECONOMIES
Following in the footsteps of markets like
Mainland China, Korea and Taiwan — which began
their move from agrarian-based economies
to manufacturing on the back of textile and
garment manufacturing — Vietnam, Cambodia
and Bangladesh are now increasingly involved
in the global supply chains that drive fast fashion.
With strategic investments in manufacturing
capabilities and a growing focus on sustainability,
Vietnam, for example, has positioned itself as a key
player in the global textile market, now in fourth
spot in global clothing exports, according to 2023
World Trade Figures.
While this expansion has stimulated economic
growth and increased export opportunities,
associate professor Rajkishore Nayak, and program
manager of the Bachelor of Fashion (Enterprise)
program Corinna Joyce from RMIT University
in Vietnam, note that there are challenges in
establishing and maintaining acceptable labour
conditions and sustainability standards.
Due to rising labour costs in China, many
foreign investments are shifting to Vietnam
because of favourable government and labour
policies, says Nayak.
“This influx of investment has led to a growing
number of industries, which in turn is contributing
to significant environmental challenges, including
water, air and land pollution,” he says.
“While larger global brands sourcing from
Vietnam demand compliance with environmental
and social standards, smaller local manufacturers
often lack the resources and incentives to adopt
more sustainable practices,” says Nayak.
Labour issues also persist, with concerns around
living wages, excessive overtime and limited rights
for workers, says Joyce. She believes that overall,
Vietnam is committed to ethical and sustainable
practices, but there is always the challenge
of subcontracting, which she says complicates
the supply chain for major brands.
“There are some brands that provide workers
with benefits, such as an extra month's salary,
childcare facilities, health insurance and transport.
But some local brands will rely on overseas
workers, whom they pay less and do not provide
the same benefits to.”
However, a case study on female
garment workers in Bangladesh shows that
employment in the ready-made garment (RMG)
sector provides women with increased economic
freedom and empowerment, as well as valuable
skills and knowledge.
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