Vietnamese textile and apparel workers’ wages higher than global average

According to Vietnamese media, VNDirect Securities' report on the textile industry states that companies in the sector are committed to sustainable development. As consumer awareness of environmental issues grows, textile and apparel companies are striving for green production. With the increasing demand for sustainable and durable products, green manufacturing is becoming increasingly important.

As a result, Vietnamese companies are actively taking steps to achieve green production processes, including using recycled fabrics, sourcing green materials, renewable energy, and wastewater treatment. Global fashion brands are now prioritizing suppliers who adopt sustainable and environmentally responsible production processes. They will assess and select partners based on sustainability indicators.

However, VNDirect believes that Vietnam has lost some of its advantages in developing the textile industry, including labor costs.

According to a report from the Ministry of Industry and Trade, the average wage for textile and apparel workers in Vietnam is $300 USD per month, higher than the global average of $200 USD per month. This wage is also three times higher than that of textile workers in Bangladesh ($95 USD per worker per month) and twice as high as that in India ($145 USD per worker per month). Compared to major textile and apparel production countries like Bangladesh, Malaysia, and Indonesia, this will partially reduce the competitiveness of Vietnamese textile and apparel products.

Another "obstacle" to the development of Vietnam's textile and apparel industry is fabric production. According to VNDirect, Vietnam's clothing production heavily relies on imported raw materials (including fabrics and raw materials) because dyeing processes are not yet developed, and the fabric output is insufficient to meet demand. Currently, Vietnam's textile and apparel production stages are imbalanced, with large-scale yarn and garment production in the first and final stages, while weaving and dyeing stages have not been given priority.

Fabric production has been a "bottleneck" in the industry for years due to the high costs of investment, weaving and dyeing, complex processes, and negative environmental impacts. According to the Vietnam Textile and Garment Group (Vinatex), the localization rate of textile and apparel export products in Vietnam is currently only about 46-47%, with low added value.