Workers' Wages in Vietnam's Textile and Garment Industry
Commitment to Sustainable Development
Vietnamese media reported that VNDirect Securities' report on the textile industry said companies in the sector are committed to sustainable development. Textile and apparel companies strive for green production as consumers become more environmentally conscious.
Growing Importance of Green Manufacturing
Green manufacturing is becoming increasingly important as demand for sustainable and durable products grows. As a result, Vietnamese businesses are taking proactive actions to green their production processes, including using recycled fabrics, sourcing green materials, renewable energy, and wastewater treatment. Global fashion brands are also prioritizing suppliers adopting sustainable and environmentally responsible production processes. They will evaluate and select partners through sustainability metrics.
Challenges Facing the Industry
However, VNDirect believes that Vietnam has lost some advantages in developing the textile industry, including labor costs. According to a Ministry of Industry and Trade report, the average wage of Vietnamese textile and garment workers is $300/month, higher than the world average of $200/month. This wage is also three times higher than that of Bangladeshi textile workers ($95/worker/month) and two times higher than that of Indian textile workers ($145/worker/month), according to Minimum. Compared with major textile and garment producers such as Bangladesh, Malaysia, and Indonesia, this will partially reduce the competitiveness of Vietnam's textile and garment products.
Production Challenges: Fabric Manufacturing
The second "obstacle" to developing Vietnam's textile and garment industry is the production of fabrics. According to VNDirect, Vietnam's garment production relies heavily on imported raw materials (including fabrics and raw materials), as the dyeing process has yet to be developed, and fabric production is insufficient to meet demand. Vietnam's textile and garment production stages are unbalanced, with the first and last stages being large-scale yarn and garment production. In contrast, the weaving and dyeing stages have not received focused attention.
Bottlenecks in Fabric Production
Over the years, fabric production has been a "bottleneck" for the industry, as investment in weaving and dyeing is costly, complicated, and has a negative environmental impact. According to the Vietnam Textile and Garment Group (Vinatex), the current localization rate of Vietnam's textile and garment exports is only about 46-47 percent, with low value added.
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