Many factories in Vietnam are facing full order books but are struggling with a significant labor shortage
Xuzhou Hoffen Chemicals Co., Ltd. 2024-10-27 13:59:11
As of now, textile, apparel, and leather footwear companies in Vietnam have successfully received orders until the end of the year, with some even securing orders for the first quarter of next year. However, these companies are facing a significant challenge in the production process—a severe shortage of labor to fulfill such a large volume of orders.
According to Phan Chun Hong, the president of the City’s Textile, Apparel, Embroidery, and Weaving Association, the order situation for textile and apparel companies has shown a strong recovery. Compared to the first half of the year, orders for the second half are expected to increase by 15%. The robust recovery of orders is undoubtedly an encouraging sign, but it has also put pressure on these companies to recruit more labor.
Meanwhile, Phan Thi Thanh, the vice president of the Vietnam Leather Footwear and Handbag Association, pointed out that in order to retain existing workers, companies have been forced to increase allowance policies. While this measure has somewhat alleviated the issue of labor loss, it has not fundamentally resolved the shortage of labor.
According to data from the Vietnam Textile and Apparel Association, in the first nine months of this year, the export value of textile and apparel goods in Vietnam has surpassed $32.5 billion, a year-on-year increase of 9.2%. With this strong growth momentum, the goal of achieving $44 billion in textile and apparel exports for 2024 seems almost certain.
However, despite the promising market outlook, how to effectively address the labor shortage and ensure that companies can fulfill their orders on time has become a major challenge for Vietnam's textile, apparel, and footwear industries.
Source: China and US Footwear Industry Website, 2024-10-24
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