Vietnam's garment processing company may disappear because the cost of the textile industry's compensation may reach 500 US dollars/month within the next 3-5 years, and the chief consultant of Vietnam Textile and Apparel Association (Vitas) Li Guoen at Vietnam International Fashion Fair (VIFF) The opening ceremony of 2011 said.
Currently, a worker at a textile company in Ho Chi Minh City can earn 6 million VND per month, including allowances, benefits (such as insurance and bonuses), while workers in other provinces receive a monthly salary of 200 U.S. dollars.
Therefore, garment companies must find a way out to cope with rising compensation costs, otherwise they will disappear. At present, about 60% of textile and clothing companies are secondary contractors, said Li Guoen.
The vice president and secretary-general of the Vietnam Textile and Apparel Association suggested that clothing companies should shift from their current status as sub-contractors to manufacturers in order to survive in the market.
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