Vietnam’s Textile Workers Earn Higher Wages Than Global Average

According to a VNDirect Securities report, Vietnam’s textile and apparel industry is making strides towards sustainable development as consumer demand for eco-friendly products rises. Companies are focusing on green production processes by using recycled fabrics, green materials, renewable energy and wastewater treatment. Global fashion brands are increasingly prioritizing suppliers committed to sustainability.

Despite these efforts, Vietnam has lost some of its competitive edge due to rising labour costs. The Ministry of Industry and Trade reports that the average wage for textile and apparel workers in Vietnam is $300 USD per month, higher than the global average of $200 USD. This is three times higher than wages in Bangladesh ($95 USD) and double those in India ($145 USD), affecting the competitiveness of Vietnamese products.

Additionally, Vietnam faces challenges in fabric production, heavily relying on imported materials due to underdeveloped dyeing and weaving processes. While the country excels in yarn and garment manufacturing, the lack of focus on these intermediate stages has created an imbalance in the industry. The Vietnam Textile and Garment Group (Vinatex) states that the localization rate for export products remains low at 46-47%, limiting the added value in the sector.