Better Work Viet Nam Annual Report 2023: Viet Nam’s garment industry is in a challenging moment

By Juliette Tafreschi, February 28, 2024

Discover the highlights of the Better Work Viet Nam Annual Report 2023. Gain insights into the key industry initiatives and challenges facing the garment and footwear industry in Vietnam and their impact.

What specific areas are covered in the Better Work Viet Nam Annual Report 2023?
The annual report addresses the results of Better Work Viet Nam's key initiatives and provides a detailed overview of compliance in the garment and footwear industry in 2022.

How was the data on compliance and working conditions collected for the report?
The findings were collected from 293 on-site assessments of factories conducted from January to December 2022.

What specific economic challenges does the Vietnamese garment & footwear industry face in this report?
The industry is facing economic pressures, operational hurdles and supply chain disruptions, exacerbated by the ongoing impact of the COVID-19 pandemic in 2022.

How has the COVID-19 pandemic impacted different sectors in Vietnam, especially in 2022?
Sectors such as the garment industry, the information and communication industry and the electronics industry have been severely affected, leading to operational setbacks, closures and economic strain.

How has the migration of workers during the pandemic contributed to the challenges facing the apparel industry?
The earlier exodus of workers to their hometowns during the height of the pandemic has meant that a significant proportion of them have not fully returned to work, exacerbating the industry's struggle for stability.

What was the role of the Better Work Enterprise Advisors and what were their findings?
Enterprise Advisors worked closely with 449 factories surveyed to gain valuable insights into the changing dynamics of the industry. In particular, the report shows a recognizable slowdown in production in the third quarter of 2022, primarily due to a decline in orders.

What specific progress on environmental sustainability is highlighted in the report?
The report recognizes the progress made in the area of environmental sustainability, but also points to ongoing challenges, including market volatility and supply chain issues that require continued attention for the growth and sustainability of the industry.

Who is on the Program Advisory Committee (PAC), and what mention is made of the PAC in the report?
The PAC, which is composed of representatives from the Ministry of Labor, Invalids and Social Affairs of Vietnam (MoLISA), the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam General Confederation of Labor (VGCL), acknowledges the practical and effective support Better Work provides in complying with labor laws and promoting social dialogue.

What specific call to action is the PAC making in response to the annual report?
The PAC calls on stakeholders to continue to make progress in improving working conditions in Vietnam's garment sector and recognizes the importance of joint efforts.

How many factories does Better Work Viet Nam operate in, and what is its approach?
Better Work Viet Nam operates in 426 garment and 44 footwear factories nationwide, employing over 750,000 workers as of December 2022. The program employs a multifaceted approach encompassing assessments, advisory services, and training at the factory level, along with hosting industry seminars to foster cross-sector learning.

Read the full report

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