With a staggering output of over 2.5 billion pieces of apparel in 2023, Vietnam's garment industry is stitching together a powerful story of post-pandemic recovery and dynamic growth that goes far beyond the numbers.
Key Takeaways
- In 2023, Vietnam's garment industry produced over 2.5 billion pieces of apparel, marking a 7.5% increase from 2022
- Vietnam's knitted garment output reached 1.8 billion units in 2023, representing 72% of total garment production
- The average capacity utilization rate in Vietnam's garment factories was 85% in Q4 2023, up from 78% in 2022
- Vietnam's garment industry employed 2.8 million workers in 2023, with 60% female
- Average monthly wage in garment sector was VND 7.5 million ($300) in 2023, up 8%
- 1.2 million workers in formal garment enterprises, 1.6 million informal in 2023
- Vietnam garment exports totaled $44 billion in 2023, 3rd globally after China-Bangladesh
- US market share: 45% of Vietnam's garment exports worth $19.8 billion in 2023
- EU imports from Vietnam garments: $18 billion, up 10% YoY 2023
- FDI in Vietnam garment sector totaled $2.5 billion in 2023
- South Korean FDI: $1.2 billion, 48% total garment FDI 2023
- Chinese investments: $800 million in new garment factories 2023
- Vietnam garment industry water usage averaged 100 liters per kg fabric, major challenge
- 70% garment factories achieved zero-waste targets by 2023
- Carbon emissions from garments: 5 million tons CO2eq annually
Vietnam's garment industry thrived in 2023 with robust production growth and record-breaking exports.
Employment
- Vietnam's garment industry employed 2.8 million workers in 2023, with 60% female
- Average monthly wage in garment sector was VND 7.5 million ($300) in 2023, up 8%
- 1.2 million workers in formal garment enterprises, 1.6 million informal in 2023
- Garment worker turnover rate dropped to 15% in 2023 from 25% in 2021
- 500,000 new jobs created in garment sector post-2022 recovery
- Female workers comprised 85% of sewing machine operators in 2023
- Training programs reached 300,000 garment workers for skills upgrade in 2023
- Migrant workers in garments numbered 1 million, 40% from rural North
- Overtime hours averaged 50 per month per worker in peak seasons 2023
- Youth employment (18-25) in garments was 45% of workforce
- Union membership covered 90% of 2.5 million garment workers in 2023
- Garment sector contributed 16% to national industrial employment in 2023
- Average age of garment workers was 28 years in 2023
- 200,000 workers received minimum wage hikes to VND 4.68 million in 2023
- Digital skills training for 150,000 garment workers in automation
- Injury rate in garment factories was 2.5 per 1,000 workers in 2023
- Part-time garment workers totaled 400,000, mostly in SMEs
- HCMC garment employment: 800,000 workers, 30% total national
- Binh Duong: 500,000 garment jobs, highest provincial figure
- Dong Nai employed 450,000 in textiles-garments
- Bac Giang garment workforce grew to 300,000 with new factories
- Hai Duong: 250,000 workers, focus on skilled labor
- Nam Dinh knitwear employed 200,000 locals
- Thai Nguyen FDI firms hired 150,000 garment workers
- Quang Ngai emerging hub with 100,000 new jobs
Employment Interpretation
Vietnam’s garment industry, stitching together the nation’s economy with threads of progress, employs a predominantly young, female workforce whose rising wages and falling turnover signal a tightening stitch in the fabric of the labor market, yet the pattern still reveals a patchwork of informal employment, overtime demands, and regional disparities waiting to be fully mended.
Exports
- Vietnam garment exports totaled $44 billion in 2023, 3rd globally after China-Bangladesh
- US market share: 45% of Vietnam's garment exports worth $19.8 billion in 2023
- EU imports from Vietnam garments: $18 billion, up 10% YoY 2023
- Japan took $5.2 billion in Vietnamese apparel in 2023
- South Korea garment imports: $4.8 billion from Vietnam 2023
- China re-exports via Vietnam garments: $3 billion, 7% growth
- Knitwear exports: $22 billion, 50% of total garments 2023
- Woven garments exports: $20 billion in 2023
- Footwear-garment combo exports: $6 billion to US
- Activewear exports grew 25% to $8 billion in 2023
- Denim exports: $2.5 billion, mainly to EU-US
- In Jan-Nov 2023, exports up 15.7% to $39.2 billion
- EVFTA boosted EU exports by 18% post-2020 to $18.5B 2023
- CPTPP markets: $10 billion garments from Vietnam 2023
- RCEP enhanced ASEAN exports to $4 billion intra-regional
- E-commerce garment exports via platforms: $1.2 billion 2023
- Luxury brand outsourcing: $3.5 billion to Vietnam 2023
- HCMC export value: $15 billion garments 2023
- Binh Duong exports: $10 billion, 23% national
- Dong Nai: $8.5 billion garment shipments abroad
- Hai Phong port handled 40% garment exports volume
- Cai Mep-Thi Vai port: 25% growth in garment containers
- Da Nang exports to Japan: $1.5 billion apparel
- Can Tho Mekong delta garments: $500 million to ASEAN
Exports Interpretation
Vietnam has masterfully stitched itself into the global wardrobe, becoming a veritable garment juggernaut by threading a $44 billion needle through key markets, from the US where nearly half its exports land, to the EU boosted by trade deals, all while knitting activewear and denim into its dominant $22 billion knitwear fabric.
Investments
- FDI in Vietnam garment sector totaled $2.5 billion in 2023
- South Korean FDI: $1.2 billion, 48% total garment FDI 2023
- Chinese investments: $800 million in new garment factories 2023
- US firms invested $400 million in supply chain upgrades
- Japanese FDI: $300 million for high-tech garment lines
- Taiwanese investments reached $250 million in 2023
- Total greenfield FDI projects: 150 new garment factories 2023
- Binh Duong attracted $700 million FDI garments
- Dong Nai FDI inflow: $500 million for expansion
- Bac Ninh high-tech parks: $400 million FDI
- Hai Phong FDI zone: $300 million Korean garment firms
- Hung Yen new industrial parks: $250 million FDI
- Domestic investment in garments: VND 100 trillion ($4.1B) 2023
- Vinatex group invested $500 million in modernization
- Private Vietnamese firms FDI outflow to Cambodia: $100M garments
- Tech integration FDI: $200 million robotics in sewing
- Sustainable factory FDI: $150 million for LEED certified plants
- Garment machinery imports FDI-linked: $1 billion 2023
- IPOs and bonds raised $300 million for garment expansion
- Bank loans to garment SMEs: VND 50 trillion
- Venture capital in garment tech startups: $50 million
Investments Interpretation
The Vietnamese garment industry is stitching together a global investment tapestry, where South Korea and China are threading the needle while the domestic sector weaves in its own capital, all crafting a surprisingly high-tech and sustainable future for the humble shirt.
Production
- In 2023, Vietnam's garment industry produced over 2.5 billion pieces of apparel, marking a 7.5% increase from 2022
- Vietnam's knitted garment output reached 1.8 billion units in 2023, representing 72% of total garment production
- The average capacity utilization rate in Vietnam's garment factories was 85% in Q4 2023, up from 78% in 2022
- Vietnam manufactured 450 million pairs of trousers in 2023, a key segment growing by 12%
- Woven shirts production hit 650 million units in 2023, contributing 25% to export-oriented production
- In 2022, total garment production value was VND 450 trillion, equivalent to $18.5 billion
- Vietnam's sportswear production surged to 300 million pieces in 2023, driven by Nike and Adidas orders
- Denim jeans output reached 120 million pairs in 2023, with 60% for export markets
- The industry added 500 new production lines for casual wear in 2023, boosting capacity by 15%
- Formal wear production totaled 200 million suits and dresses in 2023, down 2% due to post-pandemic shifts
- In H1 2024, garment production grew 8.2% YoY to 1.3 billion pieces
- Vietnam's underwear and lingerie output was 350 million pieces in 2023, up 10%
- Activewear production lines operated at 92% capacity in 2023, highest in sector
- Total fabric consumption for garments was 1.2 billion meters in 2023
- Children's apparel production reached 400 million items in 2023, growing 14%
- Home textile-integrated garment production value added $2 billion in 2023
- Sweater and knitwear output hit 500 million pieces amid winter demand
- Protective clothing production for medical use declined to 50 million pieces post-COVID
- Eco-friendly garment production doubled to 100 million units in 2023
- Footwear-integrated garment factories produced 200 million apparel items
- In 2023, Binh Duong province alone produced 600 million garments, 24% national total
- Dong Nai garment output was 450 million pieces, focusing on high-end
- Ho Chi Minh City garment factories output 800 million units yearly average
- Hai Phong free trade zone garment production up 20% to 150 million pieces
- Nam Dinh province specialized in 300 million knit garments
- Thai Binh garment cluster produced 250 million casual wears
- Phu Tho industrial park output 180 million formal garments
- Hung Yen added 100 million pieces via new FDI lines
- Bac Ninh high-tech garment production reached 120 million tech-integrated items
- Quang Nam coastal factories produced 90 million beachwear items
Production Interpretation
While Vietnam's factories are operating at a near-bursting 85% capacity and stitching their way to over 2.5 billion garments a year, their real skill is in expertly tailoring a diverse wardrobe for the world, from booming trousers and sportswear to specialized knits, all while carefully hemming the seams of their own rapid growth.
Sustainability
- Vietnam garment industry water usage averaged 100 liters per kg fabric, major challenge
- 70% garment factories achieved zero-waste targets by 2023
- Carbon emissions from garments: 5 million tons CO2eq annually
- 40% fabrics sourced sustainably (organic/recycled) in 2023
- Chemical dye pollution reduced 30% via new tech 2023
- 25% energy from renewables in garment factories 2023
- Labor compliance score: 75% factories audited passed ILO standards
- Water recycling rate: 50% in top 100 exporters 2023
- Biodiversity impact from cotton imports: high risk score 8/10
- Solar panel installations: 200 MW in garment parks 2023
- Wage gap women-men: 12% in garments, sustainability issue
- Supply chain transparency: 60% brands disclose Vietnam suppliers
- Overtime violations fined $10 million total 2023
- Organic cotton use up 50% to 20,000 tons 2023
- Microplastic pollution from synthetics: 15% garments contribute
- Binh Duong sustainability index: 85/100 for top factories
- Dong Nai wastewater treatment: 90% compliance 2023
- HCMC air quality impact from dyeing: PM2.5 +5%
- Northern provinces child labor cases: down 20% to 5,000
- EVFTA green clauses compliance: 80% exporters certified
- Recycled polyester adoption: 15% fibers in exports 2023
Sustainability Interpretation
Vietnam’s garment industry is striding forward in a chic, eco-friendly ensemble, but the fit is still uncomfortably tight in spots like water waste, carbon emissions, and fair wages.
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