Labour shortage is the biggest issue facing the garment sector. Each business lacked around 18 percent of the total workforce, especially after the traditional Lunar New Year Festival (Tet). In addition, increases in interest rates and input material costs pushed production costs up by 15-20 percent.

Despite difficulties, garment exports increased by 27.9 percent to US$2.8 billion in the first quarter compared to the same period last year. Many businesses have signed contracts for the third quarter of this year.

The Vietnam Textile & Apparel Association (VITAS) has urged its members to stabilise their workers and improve their skills to avoid losses in compensating for importers due to late delivery.

VITAS Vice Chairwoman Dang Phuong Dung said most businesses face difficulties in recruiting workers, however, they have gone to remote areas to recruit labour. They have also applied advanced technologies to increase productivity and sharpen their competitive edge.