Sustainable Fashion Manufacturing in Vietnam Achieved by the Use of RFID Technology

The use of radio frequency identification (RFID) technology in many sectors including fashion and textiles can change the business dynamics and create a sustainable future. Some of the fast fashion brands have already started adopting the green fashion production by using various technologies including RFID technology. Other brands should also start focusing on sustainable aspects to secure the future, which will be beneficial for both the organization and the planet. RFID technology not only provides economical benefits in manufacturing and supply chain processes, but also offers many tangible business benefits such as competitive advantage, improved customer relationship, resiliency, and finally increased profitability. This paper has investigated the benefits achieved through the use of RFID technology to become sustainable in the fashion and textile supply chain including manufacturing. As Vietnam is one of the emerging economies involved in manufacturing of fashion and textiles for many global fashion brands, fashion and textile companies operating in Vietnam were selected for this study. It was found that many of the small and medium sized enterprises (SMEs) did not understand the RFID technology and its benefits. For the SMEs, the major focus is to achieve the profit without extra expenses in technology such as RFID. Although the global fashion brands emphasize on the implementation of RFID technology, some of the manufacturers in developing countries such as Vietnam has no intention to invest a large amount of money in implementing the new technology.