Human Resource Development in Vietnam's Textile and Garment Industry in the Context of Digital Transformation

*Tran Thi Van Anh, Tran Minh Tuan and Nguyen Xuan Tung*

#### **Abstract**

Vietnam's textile and garment industry is one of the key industries with significant contributions to exportation and national growth. However, the industry has been facing increasing pressure from competitors with the same comparative advantage. In the context of digital transformation on a global scale and across industries, improving the quality of existing textile and garment human resources will be a key factor for enterprises to compete in terms of productivity, quality, localization rate improvement access to the fourth industrial revolution. From the approach to human resource development of a country is the change in the quantity and quality of human resources in terms of physical strength, intelligence, skills, knowledge and mental capacity, along with progresses changes in the structure of human resources, the article uses qualitative research methods, analysis, statistics, SWOT and in-depth interviews with experts… to focus on assessing the current situation of human resources in Vietnam's textile and garment industry in recent years. Suggestions to develop human resources of Vietnam in general and human resources in the textile and garment industry in particular are discussed in the context of digital transformation.

**Keywords:** human resources, Vietnam's textile and garment industry, digital transformation

#### **1. Introduction**

In the process of international integration, Vietnam's textile and garment industry has contributed significantly to economic growth and restructuring. Textile and garment enterprises have promoted export activities and created jobs for workers, especially workers from the agricultural sector. However, negative impacts from the Covid-19 pandemic, the fierce competition in the textile and garment industry, and the rapid development of technology are posing many challenges to Vietnam's textile and garment industry. The biggest challenges among these are the shortage of high-quality human resources and inadequate technology. The aim of this article is two-folded: (i) assess the current situation of human resources in the textile and

garment industry to point out its strengths and weaknesses, and (ii) suggest ways to develop human resources in the textile and garment industry in the context of digital transformation.

#### **1.1 Overview of Vietnam's textile and garment industry**

In the process global integration, the number of Vietnamese textile and garment enterprises has increased significantly from 2994 in 2007 to 13,741 enterprises in 2019. Garment enterprises accounted for about 63% while textile enterprises accounted for about 37% (**Figure 1**).

The percentage of textile enterprises in the total number of enterprises operating in the economy in the 2008–2019 period maintained between 2% and 2.5%. In the short and medium term, the existence and stable development of textile and garment enterprises will contribute to economic restructuring, export capital rise, and economy protection against external shocks during the integration process, especially when the agricultural sector still accounts for a large proportion.

In terms of structure by ownership, Vietnamese private enterprises account for the largest proportion and increase steadily over the years. If in 2007, the number of domestic private textile and garment enterprises accounted for 80.6%, by 2019, this figure was 88%. Foreign direct investment (FDI) enterprises in the textile and garment industry decreased to 11.7% of the total number of enterprises. State-owned enterprises (SOEs) account for about 0.3%.

In terms of scale, SOEs and FDI enterprises in the textile and garment industry are "large" in terms of labor but "not large" in terms of capital. Meanwhile, private enterprises account for a large proportion in number, but their scale of labor and capital is "small". In 2018, according to capital scale, 90% of private textile and garment enterprises were small-scale while only 5% listed as large-scale. According to labor criteria, nearly a quarter of FDI enterprises are large enterprises, but according

*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

to the size of capital sources, this ratio is less than 30%. For SOEs, if nearly 70% of enterprises are considered large in terms of labor, this rate is only 50% if calculated by capital size [2]. The textile and garment industry is characterized by economies of scale, with small and micro-scale mainly hindering businesses from international economic integration. The lack of medium-sized enterprises, especially from the labor criterion, shows the problem of cooperation and linkage between the group of large enterprises (playing the leading role, organizing production) and small and medium-sized enterprises micro (as satellite businesses, subcontractors…) becomes difficult.

Regarding export, thanks to the international division of labor in the global textile value chain, the textile industry has made important contributions to increasing export turnover and become the main export industry of Vietnam, contributing about 16% of the export share of the country in 2019. However, since the beginning of 2020 until now, the Covid-19 pandemic caused a severe recession on a global scale. Vietnam is no exception. The textile and garment industry is one of the industries that suffers most direct and greatest losses when the supply chain of input materials was interrupted and import markets were closed to prevent the spread of the pandemic (**Figure 2**).

In 2020, the total export turnover of products of the textile industry is only about 35 billion USD, 9.8% lower than 2019. This is the first year that the export turnover of the textile and garment industry had negative growth after 25 years of continuous growth. Export turnover of textile and garment industry dropped to the third place, lower than export turnover of electronic products and components. However, Vietnam's textile and garment industry remains a highlight in export because the world's total demand for textiles and garments has decreased by nearly 20% (from 740 billion USD to 600 billion USD). Other countries that compete with Vietnam in the textile and garment sector had a reduction of 15–20%, even nearly 30% [3]. According to the World Trade Organization [4], in 2019, Vietnam ranked third in the top five largest textile and garment exporting countries in the world (including China, India, Vietnam, Bangladesh and Turkey). Vietnamese textile and garment products are gradually reaching the leading position in two potential markets, Korea and Japan.

#### **Figure 2.**

*Vietnam's textile and garment export turnover in the 2010–2020 period (USD billion). Source: General Statistics Office [1]; MOIT [3].*

It should be noted that in the global textile and garment value chain, the majority of Vietnamese enterprises are in the lowest value-added stage—the bottom of the value chain. As of 2018, about 70% of Vietnamese textile and garment enterprises are participating in textile production/value chains, with a simple production method— Cut, Make, Trim (CMT), a method in which the added value of Enterprises can create only 1%–2% of the total added value of the textile value chain. Few businesses participate in Free On Board (FOB) or Original Equipment Manufacturing (OEM) [5]. This situation exists due to many reasons: (i) the supporting industry for the textile and garment industry is underdeveloped, making businesses dependent on imported raw materials; (ii) technology level of textile enterprises is low; (iii) the quality of labor in the textile and garment industry is low and the level of variance is high; (iv) the majority of textile enterprises are small-scale.

In the digital age, digital transformation is an irreversible trend. Unfortunately, in the process of digital transformation, Vietnamese enterprises are facing many barriers, such as difficulties in investment costs and digital technology application (accounting for 60.10%), followed by difficulties in changing business habits and practices (52.3%), lack of internal human resources to apply digital technology (52.3%), lack of information on digital technology (40.40%), difficulties in integration of digital technology solutions (38.50%), lack of commitment and understanding of the leadership, business management (32.1%), lack of commitment and understanding of employees (26, 60%), fear of personal/business data leakage (23.4%) [6]. Thus, in the process of digital transformation, the shortage of qualified human resources is a huge barrier for enterprises in general, including textile enterprises.

According to PWC's study on Vietnam's digital skills readiness, Vietnam maintains 42nd position for 2 consecutive years in the Global Innovation Index (GII) ranking of 2020. However, compared to 2019, Vietnam dropped in rankings of Human Resources-Research and Development (ranked 79), as well as Knowledge and technological output (ranked 37). Although Vietnam has emphasized its focus on Industry 4.0 policy reform, in terms of workforce digital skills, Vietnam has dropped four places to the 96th place in the 2020 Global Talent Competitiveness Index 2020 (GTCI).

In recent years, every stage in the supply chain of the garment and textile industry, from design, purchase to production, distribution, has gradually changed to meet the requirements of digital transformation. This process of change begins with the application of modern machines and technologies to use less labor but still improve productivity in spinning - weaving - dyeing - sewing factories; as well as applying information technology and artificial intelligence to transfer data from the place of production in Vietnam to all shoppers whether in the US, Europe or Japan. The buyer can manage in real time the production process in Vietnam. Online shopping becomes increasingly popular, leading to new creation such as online clothes trying-on. If a link in the supply chain does not meet the high requirements, that link is likely to be replaced and eliminated. As such, human resources play an important role in this process. One proof of this problem is the fact that Vietnamese garment enterprises lack skilled workers so they are still doing garment processing for export (CMT) instead of upgrading to other forms of garment manufacturing like FOB.

#### **1.2 Theories of human resource development in the context of digital transformation**

Human resources and human resource development are topics that draw a great deal of attention from researchers and organizations. There have been many ways

#### *Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

to conceptualize human resources basing on different perspectives. According to Srivastava [7], human resource is understood as inclusive human capitals, including physical strength, mental power and professional skills that each individual possesses. Human capital is understood as human potential in generating future income sources, thereby promoting economic prosperity. This capital is a collection of skills, knowledge and experiences accumulated through the labor process.

According to the United Nations, human resources are knowledge, skills, experiences, abilities and creativity related to the development of each individual and the country [8]. The World Bank stated that human resources are all human capitals, including physical strength, intelligence, and professional skills that each individual possesses, which can be mobilized in the process of production, business or any activity [9].

Previous research has discussed the important role of human resources for the development of enterprises, industries, fields, as well as for a country. According to Barney [10], the existence and development of enterprises depend on three groups of resources: (a) physical resources (such as machinery and equipment, factories, land); (b) human capital; and (c) organizational capital. To solve the challenge of "superprofit" for development, enterprises must handle the problem of mobilizing and effectively using these three groups. Ahn [11] suggested that the quality of human capital in an enterprise has a positive effect on the frequency of promoting physical capital. Businesses that maintain and develop a skilled workforce tend to upgrade their physical capital more often. Basing on observing and analyzing the role of management personnel in 198 enterprises, Glaister et al. [12] believed that good managers, through developing human resource networks and social capital, are an important channel to convey the impact of human resource management on business performance of enterprises

For Vietnam, Binh and Quy [13] emphasized the decisive role of high-quality human resources in socio-economic development in the context of Industry 4.0. However, human resources in Vietnam remain inadequate to meet the requirements of enterprises. Trang [14] pointed out factors explaining the low labor quality, such as education, environment, and training. Education innovation, talent attraction, technical training for workers and strengthening international cooperation are essential to help workers survive and compete in the context of the ever-evolving Industry 4.0.

There are many different models of human resource development, such as the Model of Human Resource Development, by McLagan [15]; The Skills Development Model, by Overtoom [16]; the Human Resource Development Model, by Ravand [17] etc. Swanson and Holton III [18] are the best representatives among the authors studying human resource and human resources development. According to Swanson and Holton III [18], human resource development is a process of developing and unleashing expertise for the purpose of improving organizational system, work process, team, and individual performance. Researchers have developed models of human resource development in relation to production chain from from input to output.

Thus, it can be understood that human resource development of a country is a change in the quantity and quality of human resources in terms of physical strength, intelligence, skills, knowledge and mental capacity, along with progresses in the structure of human resources. In other words, human resource development is the process of creating and using comprehensive human capacity for economic progress and self-growth of each person [19]. This approach is utilized in this study to examine human resource development in the context of digital transformation.

#### **1.3 Research method**

This study used qualitative research method, in which the combination of the following main methods: (1) Secondary data about labor quantity, structure, quality, productivity of Vietnam's textile and garment industry from 2015 to present were collected for descriptive statistical analysis. (2) SWOT analysis was used to evaluate strengths, weaknesses, and opportunities and challenges for human resource development in Vietnam's textile and garment industry in the context of digital transformation. (3) In-depth interview was conducted with leaders of 15 textile and garment enterprises to better explain the current situation of human resources in enterprises as well as consult enterprises in developing human resources.

#### **1.4 Data collection**

Secondary data were collected from reliable sources: General Statistics Office (GSO), Vietnam Textile and Apparel Association (VITAS), Vietnam National Textile and Garment Group (VINATEX) and Vietnam Customs. Data from internationally and locally published studies were also consulted.

### **2. Discussion**

The following SWOT analysis shows the current situation of human resources in Vietnam's textile and garment industry.

#### **2.1 Strengths**

As the main export industry of Vietnam with the strong growth in the number of enterprises, the textile and garment industry has created many jobs every year (**Table 1**).

As of 2019, the number of employees in textile enterprises was 1,914,123, accounting for 25.3% of employees in the manufacturing and processing industry and 12.6% of employees nationwide. This rise leads to a steady increase in average monthly income of workers in the textile and garment industry over the years. Textile workers' average income increased from 6.4 million Vietnamese Dong (VND)/month (2015) to 8.6 million VND/month (2019); while garment workers' average income increased from 5.6 million VND/month to 7.4 million VND [1].

One of the competitive edges of Vietnam's textile and garment industry in recent years is an abundant, easy-to-train workforce who are young, hardworking and


*Unit: person.*

#### **Table 1.**

*Number of employees in acting textile and garment enterprises having business outcomes from 2015 to 2019.*

*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

dexterous, suitable to create unique handicraft products. The proportion of female employees is higher than male (accounting for 73.80%). By age group, the number of workers in the textile industry is mainly young workers (15–35 years old) accounting for 71.92% [1]. This age group can adapt well to changes in technology, creating opportunities for businesses to accelerate the digital transformation process.

Quality of human resources of the whole industry in the period 2008–2018 improved: the percentage of trained workers increased from 14.9% in 2008 to more than 20% in 2018 [20]. The average productivity of textile enterprises has improved from 68.6 million VND/person in 2011 to 108.4 million VND/person in 2018. The average productivity in the period 2011–2018 period reached 88.3 million VND/ employee and grew by 6.8% per year [21]. In in-depth interview, leaders of textile and garment enterprises pointed to innovation in production technology and management processes and increased workers' capacity as reasons explaining the rise in productivity. Among them, production technology has the strongest impact on improving labor productivity in recent years.

Besides, Vietnamese workers have an optimistic view and good perception of the application of technology in their work. Up to 97% of respondents believed that technology will improve their work efficiency, and 84% are willing to learn more or be retrained to improve their abilities [22].

#### **2.2 Weaknesses**

Although there has been an improvement in labor capacity in recent years, untrained workers still account for the highest proportion. There is a shortage of skilled human resources and technically skilled staff in the textile and dyeing fields.

From the **Table 2**, it can be seen that the garment industry is the industry with the highest export value, but the proportion of untrained dexterous workers or less than 3 months of training accounts for the majority with 87.92%, while the indicators of the percentage of qualifications such as intermediate, college and university is much lower than that of other major groups. In the value chain, the design stage is a step with high added value. However, in-depth interviews showed that design ability of Vietnamese designers is weak. Vietnamese designers are not sensitive in catching global trends and market tastes even though Vietnamese garment enterprises have had many years of experience in producing for famous brands, as well as a good understanding of product design and materials. The cause of this situation is due to the lack of personnel for design, research and development. Training programs for designers have not kept up with the needs of the market and are still heavily theoretical. Besides, low salary is also a reason why it is difficult to retain good designers.


#### **Table 2.**

*Qualification of Vietnamese textile workers in 2019.*

This is a big challenge for the transformation from CMT production method to higher value-added forms such as Original Design Manufacturing (ODM) or Original Brand Manufacturing (OBM) as well as for building own brand for businesses.

A survey of 100 textile and garment enterprises by Ta Van Canh [24] found that 4.0 technology skill of the garment industry was the weakest among the 4 groups. None of the skills had a rate of 30% or above. Over 80% of skills were average or below average. Important skills such as 3D design, computer usage, and smart device usage were assessed as weak.

In 2019, UNDP and the Ministry of Industry and Trade [25] conducted a survey of 153 garment enterprises and 168 textile enterprises on the readiness of enterprises for Industry 4.0, it was found that textile and garment enterprises have not focused on investing in the quality of human resources to meet the new requirements of Industry 4.0. The readiness level of the garment industry (in terms of human resources) for Industry 4.0 is *M* = 1.14, lower than the average score of the entire manufacturing industry (*M* = 1.24). This is a barrier for businesses in applying new tsechnological achievements into production as most of the employees are not capable of operating and controlling the technology at an acceptable level. Main reasons for this situation are inadequate labor training, lack of technologiacl infrastructure, weak research and development works, and limited exposure to technology.

In addition, huge labor fluctuations cause significant damage to enterprises in terms of both production efficiency and investment and development strategies. According to Pham Thu Lan [26], the current labor turnover rate in the garment industry is 8–10% per year. The reasons for this situation are: (1) overtime working in garment enterprises becomes too much; (2) workers' income in garment enterprises is lower than other occupations; (3) low-skilled workers lead to limitations in labor discipline. In garment enterprises located in rural and mountainous areas, workers are willing to quit their jobs to support family works. In addition, labor shortage puts businesses at risk in meeting production schedule, especially when the Covid-19 pandemic spreads. On the other hand, there is a shortage of high-quality, experienced and skilled human resources to implement digital transformation projects.

#### **2.3 Opportunities**

Vietnam has a population of more than 97 million people, of which 65% are people aged 15 and over. On average, about 500,000 people join the workforce every year. GDP per capita in Vietnam is over 3.000 USD/person in 2020 [1], Vietnam still has a lot of opportunities for developing the textile and garment industry, especially when it is necessary to change more than 15 million workers in the agricultural sector to textile other sectors to improve national labor productivity. In the 2021–2030 period, the garment and textile industry aim to develop a new model, focusing on automation technology and green production.

Integration and technology will create many opportunities for employees to improve their qualifications to meet new job requirements.

Labor movement between countries and regions is also taking place strongly, promoting investment attraction and cooperation in the field of education and training to develop high-quality human resources.

The Vietnamese government and businesses are paying more and more attention to and investing in the development of high-quality human resources. The government has approved the "National Digital Transformation Program up to 2025, with a vision to 2030" [27], with development goals such as promoting digital economy,

*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

improving economic competitiveness. In particular, the program states that by 2025 digital economy will account for 20% of GDP; the proportion of the digital economy in each industry or field shall reach at least 10%; labor productivity increases at least 7%/year; and Vietnam will be in the top 50 leading countries in information technology. The government also issued a program to support the development of the labor market until 2030 (Decision No. 176 - QD/CP by the Prime Minister dated February 5, 2021). This program sets the goal of having the indicator of skilled workers in the GII in the top 60 countries by 2025 and in the top 55 countries by 2030. The rate of workers with IT skills is expected to reach 90% by 2030. Along with political support, the awareness of digital transformation of Vietnamese textile and garment enterprises has also improved, many businesses have built digital transformation plans.

#### **2.4 Threats**

Under the impact of Industry 4.0, garment production tends to relocate to countries with cheaper costs. As a consequence, Vietnam's textile and garment enterprises have to face great competitive pressure from Laos, Cambodia, and Bangladesh. Labor cost at factories in Vietnam accounts for an average of 26–30%, much higher than 20% in Bangladesh. Vietnam's labor cost is cheaper than India, China and Indonesia, but the average cost per product unit in Vietnam is still 30–40% higher than these countries. Labor productivity in Vietnam is low, only 2/3 of that of other countries in the region [28].

In order to apply 4.0 technology and accelerate the digital transformation process, human resources who are and will be working in the textile industry need to be trained and equipped with the necessary knowledge, skills and qualities. However, training high-quality human resources requires a lot of time and expenses; while textile enterprises are mainly small businesses. Current unskilled workers can hardly be trained into skilled technicians or engineers in a short time.

In addition, the results of in-depth interviews of this study also show that the link between enterprises and training institutions is not tight: enterprises have not been able to participate and contribute ideas on the development of training programs. As a result, fresh graduates often fail to meet the needs of employers.

The polarization between unskilled and skilled workers in the context of digital transformation leads to higher risk of unemployment for unskilled workers. This polarization will continue to widen when production lines become fully automated. According to the International Labor Organization (ILO), 86% of Vietnamese workers in the textile, apparel and footwear industry is at a high risk of job loss due to automation and robotics in production lines [29].

Although businesses believe that investing in automatic machines and equipment can help reduce labor use, most businesses face labor shortage after Covid-19, forcing them to recruit more workers to expand production or to compensate for workers who move to another industry or return to their hometown. On the other hand, there is a shortage of human resources in the textile and garment industry, especially skilled workers suitable for FOB, OEM, ODM, or OBM production methods.

#### **2.5 Problems and solutions to develop Vietnam's textile and garment human resources in the context of digital transformation**

Industry 4.0 has brought the digital transformation trend to all countries, industries and fields. Digital transformation activities in textile and garment enterprises

have been taking place to meet the change in consumer behaviors as well as management needs. The need for digital transformation is becoming more urgent in the context of the Covid-19 pandemic. During the pandemic, digital transformation helps textile and garment enterprises transform their business models to fit digital platforms, diversify distribution channels, increase customer experience, and create new products in accordance with the needs and tastes of customers. On the other hand, digital transformation also helps enterprises to improve management capacity, supply chain management, business administration, inventory and management, optimization of operating costs, increase labor productivity, supporting accurate and timely analysis to shorten the time to make business decisions.

Digital transformation can range from digital management of data, automation and optimization of business and management processes, to a shift in business model to create new values for the business. Digital transformation in enterprises is not simply using digital technology to standardize business and management processes, but also applying technology to improve business and management efficiency, enhance capacity and competitiveness of enterprises and create new values [30].

The continuous change of technology will lead to the change of skills and competencies required. The workforce needs to constantly update and improve themselves, or else they will face the risk of falling behind or losing their jobs when their work is automated. In the process of digital transformation, about 50% of existing jobs will disappear and about 50% of new jobs will appear (Hoang Xuan Hiep, 2017). Accordingly, human resources in the textile and garment industry will need to address these following issues in the context of digital transformation:

*Product innovation*: Workers need the ability to research and develop new materials to meet the increasingly diverse needs of users, such as: materials that can trace and protect health, materials that can connect to the Internet, materials that can change color by themselves, etc.

*Production process*: Workers should be able to desgin products using 3D technology and use 3D printers and 3D textile machines to produce products. They should also be capable of operating highly automated lines by industrial robots, evaluating and analyzing data models to identify potential risks of faulty machinery and equipment. They should be able to propose a reasonable maintenance plan and improve operational efficiency to prevent damage (also known as digital maintenance). Skills related to artificial intelligence are also required, such as using AI to control production process, product quality, production progress and defect identification…

*Management:* In order to improve management capacity, textile and garment human resources need to be equipped with the ability to use specialized management softwares such as enterprise resource management (ERP), product lifecycle management (PLM), supply chain management, etc. With regard to marketing, textile and garment human resources require e-commerce and digital marketing skills.

Digital transformation based on the application of new technologies is considered by enterprises in general and textile enterprises in particular as a source of growth to be able to survive and create breakthroughs, building a smart production platform towards sustainable development. As a result, developing human resources to meet the requirements of the digital transformation process will be a decisive factor for enterprises to overcome the crisis, improve labor productivity and keep pace with integration trends.

After all, the ultimate goal of digital transformation is applying technology in core processes of each business. These processes are manufacture, service provision, and production methods. Accordingly, investing in technology and transforming business models always involve human resources.

*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*


#### **Table 3.**

*Forecast of the number of garment workers with university degrees, colleges in 2025 and 2030.*

According to **Table 3**, it is forecasted that the number of workers with university and college degrees in the textile and garment industry will be about 193,042 people (by 2025) and 233,804 people (by 2030). The total demand for universitylevel human resources in the textile and garment industry about 65,692 people (by 2025) and 102,232 people (by 2030). Human resources with college degrees are about 71,471 people (by 2025) and about 111,041 people (by 2030) [23]. Dinh Long and Dinh Cuong [20] predicted that the demand for technical workers and technicians will double in the coming time and the demand for trained workers in the textile and garment industry must reach 60%. Consequently, about 144,000 people workers with university degree are needed by 2025; and the number of graduate workers is about 1900 people. These pose huge challenges for training in the textitle and garment industry if Vietnam doesn't want to be left behind in the Industry 4.0.

Based on the assessment of the current situation of human resources in the textile and garment industry over the past time and the requirements of human resource development in the context of digital transformation, it is necessary to deploy a system of synchronous solutions to develop human resources for all sectors of the Vietnamese economy in general, and human resources for the textile and garment industry in particular, including key solutions as following:

*Firstly*, all industries and economic sectors require both high-quality workers and a sufficient number of labor (including technical management personnel and direct workers) in accordance with the areas where 4.0 technology can be applied. Accordingly, it is necessary to have a strategy on training and developing human resources to meet new demands of the labor market. There should be a plan on human resource development which take advantage of abundant human resources, improving professional capacity, and training professional human resources in all fields.

For the textile and garment industry, the VITAS and VINATEX to build a human resource development program suitable to the current situation of Vietnamese enterprises.

*Secondly*, develop and issue human resource development policies in line with the requirements of digital transformation.

• Regarding perfecting institutions and policies: review, supplement and research mechanisms and policies in order to create a favorable legal framework for the development of human resources. Ensure synchronous connections between mechanisms and policies, especially between policies on human resource development and policies on employment, education and training.


*Thirdly*, innovate training content and programs at training institutions in the new development phase.


*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

• Promote cooperation between training institutions and enterprises to develop training, retraining and upgrading programs to meet the requirements of enterprises, combining classroom training with practical applications at enterprises. Develop more interdisciplinary majors to address 4.0 technology. For example, it is possible to open majors related to Vietnam's textile industry such as: mechatronics engineering in textile equipment, applied informatics in the field of textiles and garments, e-commerce, fashion design by 3D technology, etc.

*Forthly*, focus on enterprises - one of the partners that play an important role in human resource development to meet the needs of digital transformation.


#### **3. Conclusion**

Digital transformation has become an inevitable trend, creating many opportunities and challenges for businesses in general and Vietnamese textile and garment enterprises in particular. With the approach to human resource development is the process of creating and using comprehensive human capacity for economic progress and self-growth of each person. Through different synthetic research methods, the research results show that the labor force of Vietnam's textile and garment industry is abundant, easy to train, young in age—creating opportunities for businesses to accelerate the digital transformation process.

Quality of human resources has been gradually improved, the percentage of trained workers has increased… However, a shortage of human resources, especially skilled human resources; unreasonable structure of labor qualifications and limited technological capacity to meet the requirements of Industry 4.0 are major challenges. This observation can be generalized to the human resource situation of some economic sectors in Vietnam, especially in the new development period.

Therefore, in order to meet the digital transformation requirements, it is necessary to synchronously conduct a system of solutions to develop human resources in general

#### *People Management - Highlighting Futures*

and Vietnam's textile and garment human resources in particular, including: (1), develop and issue policies to support, attract and train managerial and technical staff as well as direct workers; (2) strengthen the link between schools and businesses in innovating training content and programs; (3) attract investment and promote international cooperation in training high-quality human resources; (4) enhance the role of enterprises in using the comprehensive human capacity to promote the country's socio-economic development.

#### **Author details**

Tran Thi Van Anh1 \*, Tran Minh Tuan2 and Nguyen Xuan Tung3

1 Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Hanoi, Vietnam

2 Academy of Politics Region II, Hochiminh National Academy of Politics, Vietnam

3 Institute of Southeast Asian Studies, Vietnam Academy of Social Sciences, Hanoi, Vietnam

\*Address all correspondence to: tranvananhvkt@gmail.com

© 2022 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

*Human Resource Development in Vietnam's Textile and Garment Industry in the Context… DOI: http://dx.doi.org/10.5772/intechopen.106935*

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#### **Chapter 4**
