Vietnamese garment manufacturers must boost production: Report

13 May '21

1 min read

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Garment manufacturers in Vietnam need to boost their production values to invest in resources required to meet the international labour and environmental standards that will help them build long-term relationships with fashion brands, as per a recent report. It said that 50 per cent of fashion brands purchase from factories with 1,000 or more workers.

Local contractors will not be able to secure the resources needed to invest in sustainable development, if they continue to outsource to sub-contractors who, in most cases, have lower profit margins, according to a survey conducted by the Research Centre for Employment Relations (ERC). Such contractors risk falling out of the global supply chain.

Close to 50 per cent of fashion brands purchase products from major factories as they assume that smaller factories may not meet corporate responsibility and quality standards, said the ERC report.

“If there are no doors left open for small and medium-sized enterprises (SMEs), they will easily fall into the supply chains of discounters, which can lead to the entire domestic garment industry joining a race to the bottom,” Vietnamese media reports said quoting ERC director Dr Do Quynh Chi.

Fibre2Fashion News Desk (KD)

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