Want to be in the loop?
subscribe to
our notification
Business News
LABOUR PUZZLE FOR GARMENT AND TEXTILE INDUSTRY BEFORE FOURTH INDUSTRIAL REVOLUTION
According to the Vietnam Garment and Textile Development Plan to 2020, the sector will become “one of leading export-oriented industries capable of meeting increasing domestic consumption demands and creating more jobs for society.” However, with the Fourth Industrial Revolution, garment and textile enterprises have to solve the puzzle of technological innovation and personnel rationalisation.
Opportunity from increased productivity
The garment and textile industry is an important sector with about 6,000 active enterprises and about 2.5 million workers. Most of its labour force is involved in apparel production which does not require sophisticated skills.
Despite being the largest exporter of apparels, textiles and footwear in Southeast Asia and being a top exporter of these products in the world, Vietnam's textile and garment industry still has very low labour productivity relative to other countries. It is less than a quarter of Thailand and even lower than Cambodia.
According to economists, the Fourth Industrial Revolution will provide an unprecedented opportunity to improve labour productivity. Powered by automation, robots and big data, the production capacity may increase several times. Then, employees’ incomes will improve rapidly. This is also a great opportunity for enterprises to attract skilled workers, develop more sustainably and restrict labour mobility.
Advances in digital technology such as 3D printing, programmed microcontrollers and second-generation computer-aided control have facilitated easier and cheaper high-quality customised production. Most of these trends bring good opportunities. But, they can also come with side effects with unexpected consequences that need to be managed well.
However, according to experts, technology and automation trends will accelerate rapidly in the coming time but only some countries have high levels of technology development. For developing countries like Vietnam, this process may be slower and it will be very difficult or very long for machines to completely replace humans in garment and textile production. For example, designing always requires a creative mind of human beings, not a programmed artificial intelligence.
Is the Labour force ready?
The Fourth Industrial Revolution is taking place in many fields with the advent of robotic technology and artificial intelligence with many applications in society. This is expected to have a strong impact on labour-intensive sectors like garment and textile.
With the Fourth Industrial Revolution, the workforce of the garment and textile industry will be downsized in the long term. However, in the short term, labour cost advantages still prevail and pressures on labour replacement will not be really quick and strong. Garment and textile workers are projected to scale up in the coming time.
According to forecasts on garment and textile human resources in southern Vietnam, which accounts for more than 60 per cent of garment and textile enterprises, the demand for new recruits will be 60,000 a year from 2015 to 2025, of which Ho Chi Minh City will account for 20,500 jobs. Low-skill, medium-skill and high-skill labourers will account for 50 per cent, 20 per cent and 30 per cent, respectively. These ratios show a significant decline in low-skill and medium-skill workers, while high-skill workers tend to increase. Therefore, in order to prepare well for production modernisation and catch the wave of the Fourth Industrial Revolution, worker training is extremely important.
Nevertheless, current garment and textile worker training at training facilities has yet to meet actual demand. Ho Chi Minh City, the major centre of training facilities for garment and textile workers, has 11 facilities with garment and textile training which enrol and train 1,900 students a year, including 200 at university level. The current fashion designer force in Vietnam now can assume small-scale business, not mass commercial scale.
In addition, this industry has high demand for skilled manpower in yarn, textile and dyeing sectors, estimated at 300-400 engineers a year, while universities in Vietnam can provide only about 10 per cent of this.
Therefore, in the face of opportunities and challenges in the Fourth Industrial Revolution where the pivot will be applied technology and advanced technology, Vietnam needs new innovative and appropriate ways of working to ensure development requirements and competitiveness, and one of the very first things to be done is training workers for the new context.
Source: VCCI
Related News
VIETNAM EXPANDS INLAND CONTAINER DEPOT NETWORK TO 19
The two newly added ICDs are Cai Mep in HCMC and Tan Cang-Moc Bai (phase one) in Tay Ninh Province. Cai Mep ICD, located in Cai Mep Industrial Park in Tan Phuoc Ward, HCMC and developed by Cai Mep International Logistics JSC, covers 9.15 hectares and has an annual handling capacity of about 133,000 TEUs, according to the Government news site (baochinhphu.vn).
HCMC CREDIT UP 1.5% IN Q1
Outstanding loans in the city reached an estimated VND5.28 quadrillion, up 0.77% from the previous month and 16.25% year-on-year, data from the State Bank of Vietnam’s Regional Branch 2 showed. Vietnam dong loans accounted for 96.1% of total credit and rose 1.46% from the end of 2025. Medium- and long-term lending made up 55% of total outstanding loans and increased 3.22%.
HCMC TO ESTABLISH CULTURAL INDUSTRY DEVELOPMENT FUND
The HCMC People’s Committee has tasked relevant departments with establishing a cultural industry development fund and developing a 150-hectare film studio complex. The move follows an instruction by HCMC Party Committee Secretary Tran Luu Quang. The city’s cultural industry development fund will be structured under a venture capital model.
EMPLOYEES’ AVERAGE INCOME INCREASES
Average monthly income of workers in the first quarter reached VND9 million, up 3.8% from the previous quarter and 8.5% from a year earlier, according to the National Statistics Office. Male workers earned an average of VND10.1 million per month, compared with VND7.7 million for female workers. In urban areas, average income reached VND10.7 million per month, while in rural areas it was VND7.9 million.
HCMC KICKS OFF OVER 10 PROJECTS DURING APRIL
Work will start on major projects in transportation, urban development and logistics sectors in HCMC this month, coinciding with Vietnam’s Reunification Day, April 30. They include the N3 ramp at the An Phu interchange with an investment of VND3.4 trillion and the 1.69-hectare Tan Chanh Hiep Park. In addition to these, seven other projects are slated to break ground within the month, including the Ho Tram – Long Thanh airport urban expressway, the Nha Rong – Khanh Hoi port area and the Ho Chi Minh Museum expansion.
VIETNAM’S Q1 FOREIGN TOURIST ARRIVALS HIT RECORD HIGH
Vietnam welcomed nearly 2.1 million international visitors in March, bringing first quarter foreign tourist arrivals to 6.76 million, up 12.4% year-on-year and marking a record high for the period, the national authority for tourism said. Air travel accounted for 82.3% of international arrivals, followed by land at 15.5% and sea at 2.2%, according to the Vietnam National Authority of Tourism.
























