30 March 2022, Mumbai:
Make in USA, spin in Vietnam: Saitex changes denim making rules.
It’s a tale as old as time: Western manufacturing giants bring dangerous, pollutive, labor-intensive production to countries like Vietnam or Mexico under the guise of “providing jobs to a thriving industry.”
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Then, they take the products back to their home countries, reap profits, and continue enjoying cheap labour costs. It isn’t new: think mining, toys, electronics, and perhaps the most widely known example, clothing.
This second story feels like a natural sequel to the first: greenwashing. Companies pretend they’re changing their operations to be more sustainable.
They’re giving raises and using less water, they’ll say, only for us to find out wages are still unlivable despite the raise and that reduced water use was trumped by coal.
RELATED NEWS Saitex opens its fabric mill, outside of Ho Chi Minh City, Vietnam
It’s also common in many places, most especially in—you guessed it—clothing. Fashion is notorious for its dirty laundry, but Vietnamese denim maker Saitex wants to have a different narrative, Michael reports in today’s story. Saitex produces goods in the US, at its Los Angeles factory.
The manufacturer sells its denim to clothing retailers, and the profits go back to Saitex in Vietnam.
And before the greenwashing allegations come in, the denim company claims it’s the “cleanest in the world,” gaining attention from private equity giant Navis Capital in the process. It is even trying to gain control at the raw materials stage with a fabric mill in Vietnam.
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