Vietnam is becoming a key destination for garment production. However, detailed information about apparel manufacturers in the country remains limited. This writing will explore the current state of Vietnam clothing factories conditions, focusing on industry standards, challenges faced, and ongoing improvements.
1. Overview of Vietnam’s Clothing Manufacturing Industry
1.1. Industry Scale
According to the Vietnam Textile and Apparel Association (VITAS), the textile and garment export value is expected to reach 44 billion USD in 2024, marking an 11.26% increase compared to 2023, with the US remaining the largest market, followed by Japan, the EU, South Korea, China. Key export items such as sweatshirts, shorts, children’s clothing, and activewear while products like workwear, suits, medical clothing, and jeans are experiencing significant growth.
1.2. Number of Factories and Workforce
The textile and garment industry in Vietnam includes over 13,000 enterprises, with approximately 2.5 million workers, 1.3 million of whom are directly involved in production. Vietnam ranks 5th globally in garment exports, underscoring its key role in the global apparel supply chain, according to the Ministry of Industry and Trade of Vietnam.
The majority of garment factories are concentrated in key industrial areas such as Binh Duong, Ho Chi Minh City, Hung Yen, Thai Binh, and Bac Giang, which are home to numerous industrial zones dedicated to textile and garment production.
1.3. Competitive Advantages
Vietnam offers several competitive advantages in garment manufacturing. Its political stability creates a favorable environment for foreign investment. With numerous free trade agreements such as EVFTA, UKVFTA, Vietnam provides attractive tariff benefits, making production costs competitive compared to countries like the US, Australia, and Europe.
Vietnam is renowned for producing high-quality garments, meeting international standards such as ISO 9001, WRAP, SA8000, and GOTS. Manufacturers are also flexible, capable of customizing products to client specifications. The skilled workforce ensures high-quality output with fewer defects, while quick and accurate delivery times meet customer expectations.
Additionally, Vietnam’s garment manufacturers ensure a reliable supply chain with a network of reputable domestic suppliers, enabling them to take full advantage of tariff benefits for products labeled “Made in Vietnam“.
2. Current Vietnam Clothing Factories Conditions
Vietnam’s clothing factories adhere to labor laws and continuously work on improving facilities, workforce conditions, and environmental sustainability.
2.1. Facilities
Vietnam’s clothing factories are equipped with advanced machinery, including automatic sewing machines, cutting machines, fabric inspection machines, and embroidery machines, allowing for high-quality, high-volume production. The factories are structured with dedicated production lines for each stage of garment manufacturing, from cutting to stitching to finishing.
Most factories have designated areas for inspecting raw materials, semi-finished products, and final garments. These areas are equipped with tools for measuring dimensions, checking fabric quality, and ensuring products meet required standards before shipment, ensuring consistency and compliance with international and client specifications.
Moreover, many factories also invest in automated systems for inventory management, production scheduling, and order tracking, further improving operational efficiency and transparency. The workspaces are generally clean, well-lit, and organized to promote a safe and productive environment for workers.
2.2. Workforce
In Vietnam’s clothing factories, the workforce comprises skilled and trained employees who undergo regular training to improve their technical skills in sewing, stitching, pattern-making, and garment finishing.
The factories prioritize fair labor practices and comply with local labor laws, offering workers a range of benefits including competitive wages, paid leave, social insurance, and other statutory benefits.
Safety and worker protection are key priorities, with factories implementing strict safety measures such as the use of personal protective equipment (PPE) like gloves, safety shoes, and masks. Additionally, regular safety training is provided to ensure employees are aware of potential risks and know how to mitigate them.
To promote the overall well-being of workers, many factories offer health and welfare programs, including regular medical check-ups, health insurance, and access to counseling services. These initiatives help ensure a supportive and healthy working environment while maintaining high standards of productivity.
Thygesen Textile Vietnam is a Vietnam clothing manufacturer that places a strong emphasis on ethical practices, focusing on providing fair working conditions and ensuring the well-being of our employees. We are committed to promoting safe and healthy work environments, where workers’ rights are respected, and we strictly prohibit child labor.
With certifications such as WRAP, Better Work, and SA8000, we strive to meet and exceed international labor standards, guaranteeing that our workers’ rights and safety are always prioritized.
2.3. Environment Impact
The textile industry in Vietnam, like many others globally, is increasingly focused on reducing its environmental impact.
Many factories are adopting greener practices, such as reducing resource consumption and improving waste management. Efforts to minimize carbon emissions are gaining momentum, with factories shifting to energy-efficient technologies and renewable energy sources.
In addition, there is a growing trend of using sustainable materials, such as organic cotton, recycled fibers, and eco-friendly dyes, which reduce the environmental footprint. Waste management is also a priority, with factories implementing systems for recycling water and handling textile waste more effectively.
Thygesen Textile Vietnam, along with other manufacturers, holds several certifications for sustainability, including OEKO-TEX® Standard 100, GOTS, OCS, GRS, and FSC. These certifications highlight their commitment to eco-friendly practices and sustainable production.
3. Challenges and Improvements
3.1. Challenges
One of the main issues is supply chain disruption, exacerbated by increasing protectionism in key markets such as the U.S., Europe, and Japan. These markets are shifting towards supply chains that can handle multiple production stages in one location and offer full transparency from raw material sourcing to final product delivery.
Many Vietnamese clothing manufacturers primarily operate as CMT (Cut, Make, Trim) or CMPT (Cut, Make, Pack, Trim) factories, with few offering full-package services. As a result, Vietnam has limited involvement in the international supply chain for raw materials.
Another major challenge is the industry’s reliance on imported raw materials, with nearly 50% of them coming from China, according to the General Department of Customs. Only about 10% of the raw materials used in Vietnam’s textile industry are sourced domestically. This dependence creates vulnerabilities, especially during periods of trade instability.
Additionally, price competition from neighboring countries like China and Bangladesh, which have lower production costs, puts further pressure on Vietnamese manufacturers.
3.2. Improvements
Vietnam is already taking steps to transition from low-margin CMT production to more value-added models such as FOB, ODM (Original Design Manufacturer), and OBM (Original Brand Manufacturer). This shift is helping manufacturers move deeper into the global supply chain, increasing profitability, and reducing the pressure of price competition.
Thygesen Textile Vietnam is one of the few clothing manufacturers in Vietnam offering full-package production, from sourcing fabric to production and shipping, with OEM, ODM, and FOB services, partnered by a supply network of both domestic and international fabric and raw material suppliers.
Efforts to strengthen domestic raw material production are also underway to reduce dependency on imports, particularly from China, ensuring greater stability and control over the supply chain.
Vietnamese manufacturers are investing in technology and automation to enhance efficiency, lower costs, and improve product quality, thus increasing their competitiveness in the global market.
Furthermore, adopting sustainable practices and eco-friendly production methods aligns with the global demand for ethical fashion.Vietnamese companies are diversifying their product offerings, including expanding into niche markets like seamless activewear and sustainable fashion, helping them stand out in the competitive market.
4. FAQs
Question 1: What policies has Vietnam put in place to encourage ethical and sustainable practices in the garment industry?
Vietnam has implemented several measures to promote ethical production in the garment industry:
- Labor Laws: Strengthened labor laws ensure fair wages, safe working conditions, and workers’ rights to unionize, in line with ILO conventions.
- Environmental Regulations: Stricter laws promote sustainable practices, focusing on waste management, water usage, and energy efficiency in garment manufacturing.
- Trade Agreements (EVFTA & CPTPP): Agreements like EVFTA and CPTPP require compliance with high standards for labor rights, environmental protection, and anti-corruption.
- Sustainability Certifications: The government encourages adopting global certifications (e.g., ISO 9001, GOTS, SA8000) to meet ethical and environmental standards.
- Green Technology Incentives: Financial incentives support manufacturers investing in energy-efficient and environmentally friendly production technologies.
Question 2: Which countries does Vietnam source fabric from, apart from China?
Apart from China, Vietnam sources fabrics from countries such as South Korea, India, Taiwan, Indonesia, and Thailand, offering a wide range of materials including cotton, polyester, denim, and synthetic fabrics.
Thygesen has partners who specialize in different weaving techniques such as plain weave, twill, jersey knit, rib knit, interlock, and jacquard weave, allowing them to create fabric blends or modify fabrics to add specific features such as wrinkle resistance, UV protection, and other customer-specific requirements.
Question 3: What changes are expected in Vietnam’s garment industry?
Vietnam’s garment industry will see changes with increased automation and technology, a focus on sustainability and eco-friendly products, higher-skilled labor development, and reduced production times. The industry will expand exports due to trade agreements, and improve supply chain transparency with digital passports (providing traceable information about materials, production, and sustainability.
In conclusion, despite ongoing challenges, Vietnam clothing factory conditions are improving through investments in technology, sustainability, and a skilled workforce. These improvements, along with benefits from free trade agreements, are enhancing efficiency and global competitiveness, positioning Vietnam as a strong player in the garment market.
For more information on Thygesen’s full package manufacturing solutions, visit our website https://thygesenapparel.com/ or contact us at [email protected].
