A comprehensive report from the International Labour Organization (ILO) has identified manufacturing as the definitive bedrock of Vietnam’s global supply chain (GSC) ecosystem. The study highlights that the textile and garment sector acts as the primary anchor for this growth, contributing nearly one-third of all manufacturing jobs linked to global production networks within the country.
This robust industrial base has solidified Vietnam’s status as the regional leader for GSC-related employment. In 2023, the nation accounted for more than 25 percent of the 75 million supply chain-linked jobs across Southeast Asia. Currently, over 35 percent of Vietnam’s total workforce is integrated into global production networks, reflecting a deep connection to the international economy while also indicating a significant reliance on external market stability.
These high-intensity supply chain sectors exhibit unique demographic characteristics, as they tend to employ a higher proportion of women and young workers. Furthermore, these industries offer better access to formal wage employment compared to other sectors, although the ILO notes that the transition to high-skilled roles remains a lingering challenge for the majority of the workforce.
However, this aggressive export orientation brings substantial risks. More than 76 percent of Vietnam's GSC-related jobs in 2023 were directly or indirectly dependent on demand from major trading partners, including ASEAN, China, the European Union, Japan, South Korea, and the United States. This vulnerability leaves millions of workers exposed to global trade shifts and economic uncertainties.
In light of these findings, the ILO urges Vietnam to strengthen the resilience and inclusiveness of its supply chain participation. Recommended policy priorities include diversifying trade partnerships, building stronger domestic industrial linkages, and expanding skills development tailored to market demands. Implementing social protection measures that respond to economic shocks is also considered essential to ensure a just transition for the labor force.
Reinforcing this resilience is expected to serve not only as a safety net but as a catalyst for Vietnam’s structural transformation. By shifting toward higher value-added activities and fostering a more skilled employment base, Vietnam can advance its broader socio-economic aspirations and move toward a more sustainable and technologically advanced industrial future.
