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Our News
Major milestone in Viet Nam's textile sector decarbonisation
WWF, H&M Group, Apparel Impact Institute and leading supplier Bangjie to pioneer the sector's first fully electrified heat pump installation.
The ground-breaking project being implemented at a factory in Viet Nam, which is a supplier to H&M Group, will install the country’s first steam generating heat pump in the textile sector in Viet Nam, commencing the sector’s transition to electrification. The project will also help support H&M Group's climate targets to reduce emissions by 56% by 2030.
As part of ongoing efforts to reduce carbon emissions and improve energy efficiency, the project is a first for the sector in Viet Nam’s textile and apparel sector. The heat pump installation will provide a cleaner, more efficient alternative to traditional steam generation methods, traditionally powered by coal, supplying the factory’s full energy demand. The project will be implemented at the Banjie Factory - located in Hung Yen, just outside Ha Noi - where garments are knitted, dyed, and sewn.
Industrial heat represents over half of the energy demand in the textile and apparel industry. Thermal energy is used to generate hot water and steam used for dyeing, washing, bleaching, rinsing, shrinkage control, air cooling, and ironing to name a few. By harnessing waste heat from existing processes, the heat pump will power dyeing, drying, and setting operations while also improving worker comfort through air cooling.
As Apparel Impact Institute’s Low Carbon Thermal Energy Roadmap outlines, supporting first-mover projects like this are crucial to preparing the sector for scaled electrification in 2030. Aii;’s Climate Solutions Portfolio made a call for grants in November 2025 to support supplier electrification, provide learnings for the sector and support technologies in accelerating their return on investment. This project represents a significant step forward in decarbonising textile manufacturing, the beginning of a scalable model for electrification in light industries in Viet Nam, and beyond.
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"Shifting industrial heat to electricity is recognised as an essential part of tackling climate change. Indeed, WWF’s own energy framework calls on industry to ‘electrify all we can’. This pioneering initiative has the potential to set a new standard for energy innovation across Southeast Asia’s textile market and is set to be a true game changer for the sector. It shows what’s possible when suppliers, brands, funders and NGOs move together.” Richard Scotney, Global lead on energy efficiency, WWF.
"We know that full electrification is the only way to reach our long-term climate targets. This project with Bangjie really marks a milestone, as factories for wet processes like fabric dyeing are more difficult to electrify. For us, it is important to highlight what’s possible—and we’re excited to help move the industry forward. In combination with sourcing of renewable electricity, Bangjie will have a carbon intensity of close to zero, becoming a part of the solution both for us and the industry.” Kim Hellström, Senior Sustainability Manager, Climate at H&M Group.
‘We are excited to implement this heat pump project at our modern seamless facility in Vietnam. This project will help meet our firm’s own ambitious environmental agenda, as well as kick starting the transition in the wider sector. We thank AII, H&M Group and WWF for their support to us to make this dream a reality.’ Vincent Wang, General Manager, Bangjie.
“We are thrilled to take our Low Carbon Thermal Energy Roadmap from theory into action, by awarding this grant to first mover Bangjie. This project is a great example of the brand-supplier collaboration we called for, as well as the blended financing needed to get these projects over the line. The technical lessons from this installation will prove invaluable to Bangjie’s peers in Vietnam and the textile sector more broadly. Examples like these are crucial to enabling scaled electrification from 2030 onwards.” Pauline Op de Beeck, Climate Portfolio Director, Aii.
© WWF
Inside a textile company