Vietnam

Socialist Republic of Vietnam │ Việt Nam

The garment sector in Vietnam has enjoyed remarkable growth in the last two decades. It becomes one of the country’s largest industries, generating exports of more than US$35 billion in 2020. The industry now provides jobs for more than 4.5 million people, who in turn support millions of other family members through the wages they earn in the factories. More than 70 per cent of garment workers are women, most of whom are young and most of whom are internal migrants from rural areas.

As a source of more secure and better paid jobs for many, the garment sector has grown to become an important driver of poverty reduction and socio-economic development in Vietnam. There are around 6,000 textile and garment factories in the country, around 70 per cent of which are producing readymade garments. Most garment firms produce at the cut-make-trim end of the value chain. Around 800 factories are producing for direct export, mostly to brands and retailers in North America, Europe and Japan.

Country Profile

Population

97,339,000 (2020)

Gross Domestic Product

constant USD

2,082 (2019)

Human Development Index Ranking

HDI (out of 189 countries)

117 (2019)

Industry

Garment/Textile Workers

Number of workers in the garment/textile sector

4,682,000

Women Workers in the Garment/Textile Industry

Percentage of women workers employed in the garment/textile industry

74

Number of Garment/Textile Factories

Number of factories in the garment/textile industry

6,000

Garment/Textile Industry Exports

(USD$ billion)

35

Garment/Textile Industry Size

Percentage of total exports

15

Key Garment/Textile Export Markets

Top five countries ($USD value exported and subsequent percentage)

Country Percentage of Exports
United States 38.1%
China 10.2%
Japan 9.4%
South Korea 8.1%
Germany 3.3%
Stakeholders

Government Entities

Government agencies actively involved in the garment/textile industry

Ministry of Labour, Invalids, and Social Affairs (MoLISA)
Ministry of Planning and Investment (MoPI)
Ministry of Industry and Trade (MoIT)

Worker Organizations

Trade unions, Union federations, and other worker organizations

Vietnam General Confederation of Labour (VGCL)
Vietnam Cooperative Alliance (VCA)
Solidarity Center

Employer/Industry Associations and Chambers of Commerce

Employers and industry related associations, private sectors associations and chambers of commerce

Vietnam Textile and Apparel Association (VITAS)
Vietnam Cotton & Spinning Association (VCOSA)
Vietnam National Textile and Garment Group (Vinatex)
Vietnam Chamber of Commerce and Industry (VCCI)

Development Agencies/ International Organizations

National and international development organizations working within the garment/textile industry

Better Work Vietnam
Sustainable Trade Initiative (IDH)
Fair Wear Foundation
Friedrich-Ebert-Stiftung (FES)
Rosa Luxemburg Stiftung Vietnam
CNV Internationaal

Civil Society Organizations/ Non-governmental Organizations

Organizations working within the garment/textile industry

Action Aid
CARE International Vietnam

Sustainability

Social & Labour

Social and labour law, policy, and initiatives

Gender

Gender-related law, policy, and initiatives

14.9% of the female workforce in Vietnam are employed in the garment sector, compared to 4.3% male. 74.8% of the workers in the garment sector are women, and 25.2% are men (2020Q3). The median gender pay gap in the garment sector is between 6.5% - 7.1% (Q1-3, 2020).,

Sources

Sources of data provided

  1. Population: https://population.un.org/wpp/DataQuery/
  2. GDP Per Capita: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?name_desc=true
  3. HDI: http://hdr.undp.org/en/countries
  4. Garment / Textile Workers: Labour force statistics (LFS) ILOSTAT Employment by sex and economic activity – ISIC level 2 (thousands) – Annual. Employment ISIC codes 13-15. https://ilostat.ilo.org/data/#
  5. Women Workers in the Garment /Textile Industry: Labour force statistics (LFS) ILOSTAT Employment by sex and economic activity – ISIC level 2 (thousands) – Annual. Employment ISIC codes 13-15. https://ilostat.ilo.org/data/# Female / Total
  6. Number of Garment / Textile Factories: ILO 2019: Better Work Annual Report 2019. An Industry And Compliance Review.  https://betterwork.org/blog/portfolio/better-work-vietnam-annual-report-2019/
  7. Garment / Textile Industry Size: VITAS Monthly Report, Page 24 http://www.vietnamtextile.org.vn/images/upload/bantinthang/VITAS-Monthly-Newsletter-March-2021.pdf
  8. Key Garment / Textile Export Markets: ILO 2019: Better Work Annual Report 2019. An Industry And Compliance Review.  https://betterwork.org/blog/portfolio/better-work-vietnam-annual-report-2019/
  9. Environment - These resources are thematic related resources on a rotating roster.
  10. Social & Labour - These resources are thematic related resources on a rotating roster.
  11. Gender: ILO calculation based on labour force survey in Viet Nam 2020Q1, 2020Q2, & 2020Q3.
    International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 4, the comparable sectors are groups 13 (manufacturing of textiles), 14 (manufacturing of wearing apparel) and 15 (manufacturing of leather and related products)

News on Vietnam


Factory ensures workers return after Tet

"It stopped operating for three months, had to borrow money to pay wages, but Vietnam Samho factory in Cu Chi district still maintains support policies to retain workers. In the middle of last year, S ...

Read More

The textile and garment industry is 'greening' with PET bottles and coconut charcoal

"Textile enterprises say that fashion brands increasingly prefer sustainable and recycled materials sourced from products such as PET bottles, coffee grounds, and coconut charcoal. "The residue from t ...

Read More

XDD’s new fabric makes use of textile waste

"Vietnamese spinning and denim mill XDD Textile is leaning further into sustainable ingredients. The mill recently launched Ecology Denim, a fabric that contains 15 percent Tencel x Refibra, 10 percen ...

Read More

Resources on Vietnam

View All

Business Resilience Guides: Guides for garment factories to build resilience during and after COVID-19

The ILO provides a series of six action-oriented guides for garment factories in Asia to navigate the COVID-19 pandemic and to build business resilience. This fact sheet provides an introduction to the series.

View

Arron Goldman  | August 08, 2021

Executive summary: Moving the Needle: Gender equality and decent work in Asia’s garment sector

The report sheds light on the importance of addressing gender equality in the garment sector, while also providing ILO constituents and industry stakeholders with a holistic roadmap for action that places decent work and social justice at the heart of the post-pandemic business...

View

Arron Goldman  | September 03, 2021

Recovering towards a human-centred future of work in Asia and the Pacific

View

Arron Goldman  | July 05, 2021

Quần áo thân thiện với môi trường hơn? Các sáng kiến và công cụ về môi trường trong ngành dệt may châu Á

Executive Summary: Greener clothes? Environmental initiatives and tools in the garment sector in Asia

View

Quy định có hiệu lực hay không? Đánh giá tác động môi trường của ngành dệt may tại Bangladesh, Campuchia, Indonesia và Việt Nam

Executive Summary: Effective regulations? Environmental impact assessment in the textile and garment sector in Bangladesh, Cambodia, Indonesia and Viet Nam

View

Gender and the labour market in Vietnam

An analysis based on the Labour Force Survey

View

Arron Goldman  | July 05, 2021

Quick impact assessment of COVID-19 pandemic on the key economic sectors: Responses, adjustment and resilence of business and workers

With the objective of studying the impacts of Covid-19 pandemic and the responses and the adjustment processes by businesses and workers, the research is mainly based on two surveys of 58 firms and 292 workers in tourism, garment, electronics, seafood-processing and...

View

Arron Goldman  | July 12, 2021

Piece rate pay and working conditions in the export garment sector

View

GIZ Admin  | May 17, 2021