Vietnam’s textile sector anchors most of its supply chain employment

Manufacturing remains the backbone of Vietnam’s supply chain ecosystem, accounting for 49 per cent of all global supply chain (GSC)-related jobs, with textiles and textile products alone contributing nearly one-third of manufacturing’s supply chain employment. This strong industrial base underpins Vietnam’s position as the region’s largest host of GSC-related jobs, according to a report by the International Labour Organization (ILO).

Vietnam accounted for more than 25 per cent of the over 75 million GSC-linked jobs in South-East Asia in 2023. More than 35 per cent of Vietnam’s total employment is now tied to supply chains, underscoring both the depth of integration into global production networks and the moderate reliance on external markets.

The report highlighted that sectors with high GSC intensity tend to employ more women and young workers and offer higher levels of formal wage employment, though the share of high-skilled roles remains limited. Vietnam’s export orientation also exposes its workforce to external risks: over 76 per cent of GSC-related jobs in 2023 depended directly or indirectly on demand from ASEAN, China, the European Union (EU), Japan, the Republic of Korea, and the United States.

Manufacturing drives Vietnam’s supply chain strength, accounting for 49 per cent of GSC-related jobs, with textiles contributing nearly a third.
Vietnam hosted over 25 per cent of South-East Asia’s 75 million GSC jobs in 2023, though most depend on foreign demand.
The ILO urges diversification, skills development, stronger labour standards, and just transition measures to boost resilience.

Amid rising global trade uncertainties, the ILO urges Vietnam to strengthen the resilience and inclusiveness of its GSC participation. Key policy priorities include diversifying trade partnerships, building stronger domestic industrial linkages, expanding demand-driven skills development, enhancing gender-responsive labour measures, and implementing shock-responsive social protection to support just transitions. Improved job quality, strengthened labour standards, and inclusive social dialogue are also essential.

Reinforcing supply chain resilience and capitalising on new growth opportunities will enable Vietnam to advance its structural transformation, shifting towards higher value-added activities and more skilled employment—an essential step towards achieving its broader socio-economic aspirations, added the report.

Fibre2Fashion News Desk (SG)