The 3,700 workers Garmex Saigon Corporation had in 2021 was whittled down to 1,900 workers last year, and this year has dropped to just 37 on lower demand for Vietnamese garments, Dan Tri is reporting.
Why it matters: Layoffs have been common throughout the industry this year and attributed mostly to lower consumer demand in key export markets. But this may be a symptom of wider changes in the industry. In particular, the US and EU are both introducing regulations on circular/green manufacturing and garment and textile recycling. This means manufacturers need to invest in new technology and processes and procedures but may also see a drop in demand–justifying the additional capital expenditure may be difficult. That is to say, garment and textile manufacturing, as a percentage of Vietnam’s economy may be set for a more permanent rejig.