If you’ve ever checked the label on that new shirt you just bought, there is a good chance that it was made in Vietnam. After years of rapid growth, the country is now the world’s second-largest exporter of textile and garment after China. Textile and garment manufacturing accounts for no less than 16 per cent of Vietnam’s GDP and employs some three million workers. 

The apparel industry as a whole, however, is a significant source of carbon emissions. As a major player of the global supply chain, Vietnam’s textile and garment industry is taking steps to become more sustainable even as it maintains its growth momentum. Enter forward-looking initiatives such as the Aurora Textile Industrial Park.

A pioneering “green” textile hub

Located in Vietnam’s northern Nam Dinh province, 130 km from Hanoi, Aurora covers a total area of 520 ha and is well-connected with seaports and airports by new roads. 

It is one of the few industrial parks in Vietnam that meets the strict infrastructure requirements to accommodate fabric-dyeing operations. The first phase, of which construction is now complete, is expected to produce 1 billion metres of fabric annually and reduce the country’s dependence on imports.

“We believe that the success of Aurora IP also shows the success of Vietnam’s economy as a whole in terms of attracting more foreign capital into the textile industry,” says Mr Tran Quoc Viet, chairman and CEO of Cat Tuong Real Estate Group, Aurora’s developer. 

The 11-year-old company, whose vision is built on “humanity and sustainability”, made its mark developing residential property in southern Vietnam. Aurora – the Latin word for dawn – is its first foray into industrial real estate and its first venture in northern Vietnam.

Currently, Aurora IP has closed two land lease deals worth more than US$200 million (S$278 million) with investors from Japan, Hong Kong and Taiwan to develop high-tech textile and dyeing projects. It expects to sign on more investors from the three regions in the near future.

Sustainability in more ways than one

Investors are no doubt drawn to the many selling points that set Aurora IP apart from other industrial parks. Not only can Aurora IP accommodate high-tech plants and meet the strict requirements of the textile dyeing process, it is committed to sustainability in various aspects. 

Environmental sustainability

Around 17 km of green fence and canals surround the park instead of concrete walls. No less than 5 ha of land are set aside for nursery gardens and a lake. Green features, internal roads and logistic systems comprise 35 per cent of Aurora’s total area.

On top of that, to minimise its environmental impact, Aurora IP is building a system to tap up to 170,000 m3 per day of water from the nearby Day River rather than underground. To reduce its overall water consumption, the park aims to recycle 60 per cent of as much as 110,000 m3 of treated wastewater per day.

Sustainability in energy use is another cornerstone of Aurora’s vision. Besides prioritising the development of energy-saving solutions, renewable energy and environment-friendly fuels, Aurora IP also encourages its investors to do so. Workers zip around the park in quiet, low-emission electric vehicles.

Supply-chain sustainability

Aurora IP’s goal of producing 1 billion meters of fabric on-site will not only reduce Vietnam’s dependence on imports, but also create jobs for 40,000 workers and connect local suppliers to its supply chain.

Aurora IP is well-equipped to cater to this burgeoning ecosystem. It offers housing and co-working space for investors as well as a dormitory, school and hospital for workers and their families. There are also programmes and activities to support and develop local communities. 

As Mr Viet notes: “Cat Tuong Group has great ambitions and creativity to forge its own path while prioritising humanity and sustainability at every stage of project development.”

Looking forward 

Aurora IP’s complete suite of legal certificates attest to the project’s legitimacy and transparency: They include the Investment Registration Certificate, Enterprise Registration Certificate, Environment Impact Assessment, Land Clearance & Compensation, Financial Obligations, Land Use Rights Certificate for each land plot, Ground Water Exploitation Permit, and the Wastewater Treatment Plant Construction Permit. 

All in good time, too, since the future looks bright for Vietnam’s textile and garment industry as the world emerges from Covid-19. The industry recorded US$8.84 billion worth of exports in the first quarter of 2022, 22.5 per cent more than the same period last year. Exports to major markets including the United States, Europe, and Japan are up across the board.

Says Mr Viet: “As we are in the perfect position of having a bright economic recovery, Cat Tuong Group believes that with Aurora IP, the country’s textile and garment industry will be brighter in the future.”

Visit https://auroraip.vn for more information.