Vietnam’s Garment Industry Must Move Beyond Cheap Labor Advantage

On the afternoon of October 1st, in Hanoi, the Editorial Board of Tien Phong Newspaper held a meeting with the Vietnam National Textile and Garment Group (Vinatex).

Vinatex and the Aspiration to Rise

During the meeting, Mr. Phung Cong Suong, Editor-in-Chief of Tien Phong Newspaper, provided an overview of the newspaper’s notable activities throughout its 72-year development journey. Over the past 4-5 years, Tien Phong has consistently ranked among the top 10 online newspapers with the highest readership in the country.

Amid macroeconomic fluctuations, the editorial team has continuously innovated, restructured its operations, and built a diverse ecosystem, ranging from print and online newspapers to social media, and successfully organized national-level events such as the National Marathon, Miss Vietnam, National Super Cup, and Outstanding Young Vietnamese Faces. Notably, Tien Phong’s volunteer activities have become a distinctive brand, spreading the value of sharing widely throughout society.

Journalist Phung Cong Suong also expressed admiration for Vinatex’s advancements, particularly its increased investment in modern technology for production and management. Traditionally, the textile industry has been associated with labor-intensive, mass-produced goods, but Vinatex is demonstrating its ambition to excel in high-quality, technology-driven segments.

“Moving forward, Tien Phong Newspaper looks forward to collaborating with Vinatex in various activities, from volunteering and social initiatives to branding and media, to jointly create positive values for the community,” shared the Editor-in-Chief of Tien Phong Newspaper.

In response, Mr. Cao Huu Hieu, CEO of Vietnam National Textile and Garment Group, extended congratulations on Tien Phong’s remarkable achievements. He noted that through the introductory videos, his perception of Tien Phong expanded beyond a written and visual newspaper to an organization deeply committed to social responsibility through meaningful volunteer work.

Mr. Hieu mentioned that while Vinatex is celebrating its 30th anniversary, its member units, such as Nam Dinh Textile and Garment Corporation, have a history spanning 137 years, and May 10 Corporation has over 80 years. Throughout this journey, Vinatex has frequently been among the top contributors to the nation’s export turnover.

Amid geopolitical instability, global economic downturns, and supply chain disruptions, the textile industry faces significant challenges. In reality, labor costs in Bangladesh are only 30-40% of those in Vietnam, while the average income at Vinatex is nearly 10 million VND per month.

“To compete, Vinatex must choose a different path, focusing on complex orders, high-end products, and meeting green, circular, recycled, and organic standards, while expanding a closed value chain from fibers, fabrics, and design to garment manufacturing,” said Mr. Hieu.

Developing New Product Lines

Despite numerous challenges, Mr. Hieu shared that Vinatex’s business results for the first nine months of 2025 remain impressive. The group has completed 80% of its plan, with profits exceeding expectations by 15%, reaching 1.04 trillion VND, double that of the same period last year. If this growth continues, annual profits could surpass the initial target by 30%.

“Vinatex is researching and producing new product lines with high added value: flame-retardant fabrics, premium towels for hotels and resorts, and products made from special materials like soybean fibers. While these products are not new globally, they open a unique segment, affirming Vietnam’s position in high-end textiles on the international stage. 2025 is a pivotal year, determining our direction in the new era. Vietnam’s textile industry can no longer rely on cheap labor. We will compete through quality, reputation, speed, and technology,” expressed the CEO of Vinatex.

According to Mr. Cao Huu Hieu, the common ground between Tien Phong and Vinatex lies in their commitment to community responsibility. Tien Phong has made its mark through volunteer activities and support for youth and students, while Vinatex has demonstrated its commitment to tens of thousands of workers, ensuring employment, high-quality training, and leaving no one behind during restructuring.

“Personally, I am a loyal reader of Tien Phong Newspaper. As a student, I eagerly awaited its weekly release. What I value most is that despite expanding into various fields, Tien Phong has maintained its core quality. I hope the newspaper will continue to promote its values, helping students, youth, and young people shape their thoughts, lifestyles, and remain trusted by readers,” shared Mr. Hieu.

During the meeting, Journalist Phung Cong Suong, Editor-in-Chief of Tien Phong Newspaper, and Mr. Cao Huu Hieu, CEO of Vinatex, agreed that both organizations have significant potential for deeper collaboration in the future, from brand and product promotion to joint efforts in volunteer programs, community support, and shaping young people’s understanding of labor values, creativity, and social responsibility.