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This research reveals the current state of the circular economy (CE), challenges and opportunities of implementing a circular economy, and interventions that could facilitate effective implementation of circular economy in the textile and clothing (TC) industry. The study uses a survey method within 114 TC companies based in Bangladesh, Vietnam and India, revealing the correlation of CE fields of action (take, make, distribute, use and recover) with sustainability (economic, environmental and social) performance. The lack of financial, technological and human resources, along with management’s reluctance and end user’s indifference to sustainability are the biggest challenges for CE implementation. The research further derives that the TC firms are unable to eradicate the challenges to CE implementation without a holistic approach that involves the collective effort from the industry, host governments’ incentives, their buyers and above all the conscience of the end users. Finally, the study determines that the collaborative efforts, knowledge sharing in sustainability management across the value chain and marketisation of waste recycling are a few actions stakeholders of the TC industry must adopt for implementing CE successfully.
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