Ho Chi Minh City, Vietnam, June 21,
2017 – IFC, a member of the World Bank Group, is assisting local apparel
and textile suppliers of VF Corporation and Target Corporation to improve
their resource efficiency and reduce operating costs under IFC’s Vietnam
Improvement Program (VIP).
During the past 18 months, 28 selected VF and Target suppliers — with
cut-and-sew, dyeing-and-printing, and garment-washing operations — collectively
invested $9.9 million in resource efficiency measures, which have helped
them save $15 million in water, energy, and chemical operating costs.
“The energy-efficiency savings achieved at VF’s suppliers participating
in VIP help validate the merits of our supplier improvement program, and
help pave the way for additional scaling of our efforts,” said Brad van
Voorhees, Senior Manager of Environmental Practices and Sustainable Operation
at VF Corporation, a leading apparel and footwear company. “We have been
on this journey with our suppliers for nearly four years, and we appreciate
their commitment to strong collaboration and meaningful progress."
By implementing a combination of low cost and more complex factory projects,
suppliers achieved average water and energy savings of more than 20 percent,
with the highest-achieving factories attaining more than double these average
savings. When all the recommended interventions are fully implemented over
the next two years, the $26-million capital investment required for retrofits
and new, more efficient equipment could collectively save 2.8 million cubic
meters of water and 562,000 tons of GHGs annually, with associated productivity
and environmental benefits.
“Target actively works with our suppliers to develop programs that reduce
the water and energy usage across our supply chain. We are proud of the
results we have driven as part of the VIP’s efforts in Vietnam,” said
Kelly Caruso, President Target Sourcing Services, a subsidiary of the consumer
products retailer Target Corporation.
With about $27 billion in exports annually, the apparel and textiles sector
is the second largest exporter for Vietnam and a significant contributor
to its economy. “With Vietnam’s rapid growth and increasing textile exports,
intervention in this sector provides a key opportunity, with scale, to
help Vietnam promote a more sustainable private sector growth,” said Kyle
Kelhofer, IFC Country Manager for Vietnam, Lao PDR, and Cambodia. “Positive
results, early on in the program, have demonstrated the business case for
“We plan to build on this work and leverage our partnerships with other
leading global brands in Vietnam to promote resource efficiency and catalyze
clean energy usage in manufacturing supply chains,” said Navneet Chadha,
IFC Resource Efficiency Lead for East Asia and Pacific.
IFC’s Vietnam Improvement Program (VIP) has been implemented since 2015
in partnership with the Clean Technology Trust Fund and Korean Green Growth
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
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