Textile - garment industry facing labor shortage

According to the Vietnam Textile and Apparel Association (Vitas), orders from textile and garment enterprises are currently relatively abundant, many enterprises have orders until the end of the second quarter this year, with some enterprises negotiating orders for the third and fourth quarters.

In 2025, Vietnam's textile and garment exports are forecast to continue to be positive, possibly reaching about 48 billion USD. Therefore, the Vitas believes that enterprises need solutions to manage their labor forces, thus ensuring production.

Workers at a Garment 10 factory (Photo: Garment 10)

Mr. Cao Huu Hieu, General Director of Vietnam National Textile and Garment Group (Vinatex) said that currently, many enterprises are having difficulty in recruiting, leading to labor shortages. Many businesses are also facing fierce competition for labor, and a high rate of labor turnover.

According to Mr. Hieu, businesses need to invest in modern equipment and training to improve skills, while also increase working hours to ensure that the orders arrive to their clients in time. Vinatex also commits to improving the working environment and quality of life of their employees, especially in terms of company meals and working culture. Enterprises in Vinatex are building a more professional employer image to attract workers.

Mr. Than Duc Viet, General Director of Garment 10 Corporation, said that the total revenue of his corporation in 2024 reached 4,700 billion VND, an increase of 10%; while the average income reached nearly 10.1 million VND/person/month, an increase of 8% over the same period.

Although Garment 10's current order volume is enough to produce until the end of the second quarter of 2025, and the corporation is negotiating for the following months, Mr Viet said that his enterprise is facing fluctuations in labor, especially projects that saw an increase in scale and an expand in production such as in Thai Binh, Thanh Hoa...

Mr Nguyen Xuan Duong, C.E.O of Hung Yen Garment Corporation (HUGACO) said that textile and garment enterprises need to create accommodation as well as investment in machinery and equipment in order to stabilize labor in the long term and increase productivity and income. For their part, HUGACO commits to focus on improving the quality of their human resources and technology, aiming for digital management and administration, in order to ensure the highest product efficiency.

Textile and garment is one of Vietnam's key industries, providing jobs for about 3 million workers, with an average growth rate of about 10% per year.

According to Vinatex’s Cao Huu Hieu, from now until 2030, Vietnam’s textile and garment industry will gradually shift its focus to sustainable development and circular economy. From 2030 - 2045, the industry will opperate effectively and sustainably according to the circular economic model, while also joining high-value positions in the global supply chain.

In order to move up the global supply chain, enterprises need to move beyond traditional production, explore niche markets to create their own mark in the industry, while maintain a balance between highly competitive production areas and areas with great creative value, Mr Hieu said.

Businesses also need to improve fabric production capacity, ensuring that the "bottleneck" in the supply chain is resolved. According to Mr Hieu, this will enhance the competitiveness of the garment industry - the sector that plays a leading role in the entire production system.

In particular, Mr. Hieu emphasized the need for an industry shift to production methods with higher added value. Currently, with the outsourcing method, the garment industry mainly relies on the only competitive advantage which is labor. However, this advantage is gradually disappearing as labor costs in Vietnam are getting higher, while productivity is not improving.