The Consequences of Low Wages - a Study on Fashion Suppliers in Vietnam"

The report is conducted by Oxfam and the Institute of Workers and Trade Unions in Vietnam, identifies gaps that need to be addressed in order to improve wages and working conditions for garment workers. It describes our findings on the actual wages that Vietnamese workers in some garment factories receive and the impact of wages on their lives and families. The report identifies practices in the global supply chains that lead to this status of wages and the domestic barriers to achieving a living wage. The garment industry is worth big bucks, apparel brands are growing and increasing their turnover. Brands are driven by maximising profit and often also by creating the highest dividends for their shareholders. While governments across Asia set wages low to encourage foreign investment, brands also play an important part in keeping wages low by negotiating hard with individual factories to produce garments as cheaply as possible. To meet the demands of big brands, garment manufacturers are making workers work long hours on low wages. The report provides recommendations to global buyers, consumers, factory managers, the Vietnamese Government and labour unions for achieving a living wage.