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The ILO Working Paper 130 analyzes sustainable industrial policies and strategies in the textiles and clothing sector, focusing on lessons learned from Cambodia, Jordan, and Viet Nam. It emphasizes the importance of inclusive development processes that engage various stakeholders to address economic, social, and environmental challenges. The report provides recommendations for formulating effective industrial strategies that promote decent work and sustainable practices in the industry.

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26 views47 pages

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The ILO Working Paper 130 analyzes sustainable industrial policies and strategies in the textiles and clothing sector, focusing on lessons learned from Cambodia, Jordan, and Viet Nam. It emphasizes the importance of inclusive development processes that engage various stakeholders to address economic, social, and environmental challenges. The report provides recommendations for formulating effective industrial strategies that promote decent work and sustainable practices in the industry.

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ILO Working Paper 130

November / 2024

XX Sustainable industrial policies


and strategies in the textiles and
clothing sector
Lessons learned from Cambodia, Jordan and Viet Nam

Author / Stacey Frederick


© International Labour Organization 2024

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Attribution – The user must indicate if changes were made and must cite the work as follows:
Frederick, S. Sustainable industrial policies and strategies in the textiles and clothing sector: Lessons
learned from Cambodia, Jordan and Viet Nam. ILO Working Paper 130. Geneva: International Labour
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Suggested citation:
Frederick, S. 2024. Sustainable industrial policies and strategies in the textiles and clothing sector:
Lessons learned from Cambodia, Jordan and Viet Nam, ILO Working Paper 130 (Geneva, ILO).
https://doi.org/10.54394/PWRF9851
01 ILO Working Paper 130

Foreword

Governments are increasing efforts to shape the economy by means of industrial policies and
strategies which target specific sectors. This pattern has accelerated in the wake of major eco-
nomic shocks such as the 2008 Global Financial Crisis and the COVID-19 pandemic. Although
debate as to the efficiency and optimal degree of industrial policy is ongoing, more and more
countries are adopting or reviewing industrial policies and strategies.

The textiles and clothing industry is facing a series of challenges including the reshaping of glob-
al and regional trade, technological advances, climate change, changing consumer preferences
and demographic change. The sector contributes significantly to economic growth and employ-
ment and there is increasing pressure on enterprises to tackle social and environmental concerns.
Industrial strategies and policies, when developed in an inclusive manner, can promote invest-
ment and innovation within the textiles and clothing sector while also advancing working con-
ditions, skills, environmental protection and, overall, the realization of human and labour rights.  

This paper analyses and summarizes textiles and clothing strategies developed in Cambodia,
Jordan and Viet Nam. It sets out recommendations on the most effective and inclusive way to
develop sustainable industrial policies or strategies for the textiles and clothing sector. The pa-
per recognizes that there is no one-size-fits-all approach and provides guidance to policymak-
ers and ILO constituents which can be further contextualized and applied to different economic
and institutional environments.

The paper was prepared by Stacey Frederick with the support of the “Sustainable Supply Chains
to Build Forward Better” and “Supply Chains for a Sustainable Future of Work” projects, joint initi-
atives of the ILO and European Union to advance decent work in global supply chains. This report
was reviewed by Casper N. Edmonds, Beatriz Cunha and Luke Carroll. The peer review was per-
formed by Margherita Licata and Jeffrey Eisenbraun. This Working Paper also benefited from valu-
able inputs, comments and contributions from Adam Greene, Anne-Laure Henry-Gréard, Arianna
Rossi, David Kucera, Elina Scheja, Emily Sims, Irmgard Nubler, Jeffrey Eisenbraun, Léna Chiaravalli,
Nguyen Hong Ha, Nguyen Ngoc Duyen, Nour Al Dabbas, Qais Qatamin, Sara Park, Sun Doi and
Tareq Abu Qaoud. Final comments were addressed by an external consultant, Francine Ndong.

Abstract

Countries are increasingly adopting industrial strategies and policies in response to global crises
and emerging economic trends. With regards to the textiles and clothing sector, industrial strat-
egies and policies, when developed in an inclusive manner, can address economic, social and
environmental concerns. This paper summarizes and analyses textiles and clothing strategies
developed in Cambodia, Jordan and Viet Nam. It sets out recommendations for the development
of holistic industrial policies for the sector. In addition, it provides guidance on the inclusion of a
diverse range of stakeholders during this process.
02 ILO Working Paper 130

About the author

Stacey Frederick is a research analyst and global value chains expert who has worked on pro-
jects in over 25 different industries including apparel, textiles, electronics, pharmaceuticals and
digital services. Stacey has served as Director (2018-2021), Research Scientist (2010-2018) and
Research Affiliate (2005-2009) at the Duke Global Value Chains Center. She has worked as a con-
sultant for a range of international organizations such as, the International Labour Organization,
the World Bank, and the United Nations Industrial Development Organization. She holds a PhD
in Textile Technology Management from North Caroline State University.
03 ILO Working Paper 130

Table of contents

Foreword   01

Abstract   01

About the author   02

Executive Summary   08

XX Introduction   10
Purpose   10

Methodology and limitations   11

Structure of the report   11

XX 1 Industrial policies and strategies   12

XX 2 Textiles and clothing policies and strategies around the world   14

XX 3 Textiles and clothing policies and strategies


in Cambodia, Jordan and Viet Nam   17
3.1 History and stakeholder engagement   17

3.2 Relationship with horizontal strategies   19

3.3 The role of investment policies in fostering trade,


investment and decent work   20

3.4 Structure of the textiles and clothing strategies reviewed   21

3.4.1 General overview   21

3.4.2 Comparison of the objectives, goals and topics included in the strategies reviewed   22

3.5. Performance indicators and implementation arrangements   24

XX 4 Good practices   26
4.1 Stakeholders involved in development and implementation   26

4.2. Development process   28

4.3. Focus areas and performance indicators   30

XX 5 Initial steps in the strategy development process   33


Preparation: identify stakeholders and gather relevant background information   33

Conduct preliminary background research   34

Form the strategy development team   34

Write the strategy   34


04 ILO Working Paper 130

Finalize and formalize the strategy   35

Implementation/review   36

XX Conclusion   37
Appendix   38

References   42
05 ILO Working Paper 130

List of Figures

Figure 1. Stakeholders for strategy development   27

Figure 2. Steps in strategy development   33


06 ILO Working Paper 130

List of Tables

Table 1. Objectives and aims of the apparel strategies studied   23

Table 2. Examples of textiles and clothing strategy targets/performance indicators   24

Table 3. Stakeholders and descriptions   27

Table 4. Supporting stakeholders in selected textiles and clothing (T&C) exporting countries   38

Table 5. TCLF-specific industrial policies and strategies   40


07 ILO Working Paper 130

List of Boxes

Box 1. Distinguishing “Policy” and “Strategy” in sectoral and industrial contexts   12

Box 2. Global level social partners and industrial policy   15

Box 3. Investment, industrial policies and decent work   20

Box 4. Fostering policy coherence among development partners   29

Box 5. Building an enabling environment (institutions and staff) can be an objective   31

Box 6. Evaluating the successes and challenges of previous strategy objectives   31

Box 7. Strategy checklist   35

Box 8. The four pillars of the ILO Decent Work Agenda   41


08 ILO Working Paper 130

Executive Summary

Clear, holistic, and well-coordinated industrial or sectoral policies or strategies can contribute
significantly to inclusive growth and decent work.

This report analyses and summarizes the textiles and clothing policies of Cambodia, Jordan and
Viet Nam and sets out recommendations for the development of sustainable industrial policy in
other countries as well as steps for beginning that process.

The three strategies that are reviewed co-exist with multiple horizontal policies1 and strategies
developed within countries during overlapping time periods and led by various agencies to ad-
dress different objectives. The decision to develop these industrial strategies was driven by a de-
sire to grow trade and investment so as to increase exports and employment. They largely focus
on similar topics: product upgrading beyond basic assembly, market diversification, establishing
domestic backward linkages to textiles, improving the business environment, providing grants
or financing for process upgrading/machinery improvements, and promoting training and skills
development programmes. These strategies pay less attention to social and environmental is-
sues: although they touch on working conditions, gender, and respect for human and labour
rights to varying degrees, the strategy on garments and footwear in Viet Nam was the only one
that included considerations of the sector’s environmental sustainability.

Based on a review of the three national strategies, the report recommends that sustainable in-
dustrial policies and strategies should be formulated on the basis of inclusive and effective so-
cial dialogue with employers and workers in the industry concerned, as well as with multiple
branches of national and local government. They should carefully consider global, regional and
national dynamics, take the views of key industry stakeholders into account, and seek to establish
an enabling environment for sustainable enterprises in which workers can enjoy their rights. To
be sustainable, these policies or strategies should address economic, social and environmental
challenges and opportunities in a comprehensive way and set out measurable targets designed
to reach realistic objectives. Finally, sustainable industrial policies or strategies should be devel-
oped together with an implementation plan that assigns clear roles and responsibilities and is
supported by dedicated financial and human resources.

The ILO, other UN agencies, international financial institutions and other international and re-
gional organizations can play an important role. Collaboration with other stakeholders, including
global initiatives, multinational enterprises, brands and buyers, suppliers in the value chain and
development partners, is also critically important. Coordination across sectoral strategies and
with national development plans and initiatives is imperative in order to prevent overlap, avoid
confusion and ensure that resources are available to implement objectives.

Sustainable industrial strategies in the textiles and clothing sector should ideally include three
parts: the strategy, an implementation plan, and supporting research and analysis.

●● The strategy should be based on a clear vision and include objectives and goals, the ac-
tivities for achieving the goals, targets and performance indicators, and the institutional

1
Horizontal strategies/policies, in the context of industrial strategies, refer to strategies/policies that cut across multiple sectors and
industries. These strategies/policies are not specific to a particular industry or sector but rather have a broad applicability and im-
pact. They are called “horizontal” because they run horizontally across various sectors, affecting them all in different ways. Source:
Author.
09 ILO Working Paper 130

arrangements for oversight and implementation. The strategy should also provide histor-
ical background, set out the current situation of the industry in the country, outline key
megatrends and drivers of change, and the challenges and opportunities to advance eco-
nomic growth and decent work and other Sustainable Development Goals (SDGs).
●● The implementation plan should include a timeline of activities, the stakeholders respon-
sible for each activity, a mechanism for coordination and reporting, the financial resources
needed, and the sources of funding. It is important to include measurable performance
indicators in order to track progress, and to ensure that the more qualitative social and
environmental aspects of the strategy are addressed.
●● Research is key to creating the evidence base for policy formulation and to establishing a
baseline against which to measure impact of such strategies.
10 ILO Working Paper 130

XX Introduction

The case for governments to perform a strategic and coordinating role in the economy has been
gaining traction across countries in the wake of the 2008 Global Financial Crisis and the COVID-19
pandemic. It is also supported by ongoing trends and developments such as the new uncertain
era of globalization, reverses in structural transformation in many countries, productivity slow-
downs, digital transformation, and the need to address climate change.

However, there is no consensus on the optimal policy paradigm, or necessity of targeted indus-
trial policies. Targeted policies continue to be questioned for reasons such as their capacity to
address global societal challenges, the potential anti-competitive effects, the risk of waste and
corruption, and the opportunity cost of public funds (Criscuolo et al., 2022).

As these debates continue, the reality is that a growing number of countries are formulating or
updating and upgrading industrial policies or strategies. In a joint ILO and UNCTAD publication
entitled “Transforming economies: Making industrial policy work for growth, jobs and develop-
ment”, Salazar et al. highlight how countries at all levels of development are using targeted in-
dustrial policies, not only for economic development purposes, but also to respond to myriad
contemporary challenges such as job creation and poverty reduction, participation in the tech-
nological revolution and global value chains (GVCs), the promotion of efficient and clean energy
and the greening of the economy (Salazar-Xirinachs et al., 2014). During the period from 2013 to
2018, at least 84 countries across continents issued industrial policy statements or explicit policy
frameworks for industrial development (UNCTAD, 2018).

While traditional industrial and sectoral policies and strategies have focused on growth, produc-
tivity and protection of domestic industries, the new generation of industrial policies tends to be
more adaptive, collaborative, and responsive to broader policies and issues such as sustaina-
ble development (UNCTAD, 2018). There now seems to be consensus that industrial policies and
strategies should be better crafted and coordinated so as to attract investment and to advance
employment, skills, innovation, institutions, ecological ambition, social policy, and human and
labour rights. There is both a growing demand and potential for the tripartite constituents of
the ILO – labour and employment ministries and employers’ and workers’ organizations togeth-
er with other relevant stakeholders – to engage in the formulation and implementation of these
strategies so that they lead to inclusive growth and decent work for more women and men. In
addition to collaboration between the tripartite constituents of the ILO, cooperation between
other ministries, such as those responsible for finance and planning, trade, technology, science,
education, health and the environment, is essential to ensuring greater alignment across a set
of defined policy goals and to preventing siloed decision-making.

Purpose
This report analyses and summarizes the textiles and clothing policies of Cambodia, Jordan and
Viet Nam.

It also sets out recommendations for policy makers and ILO constituents – be they governments,
employers or workers – in other countries concerning the most effective and inclusive ways to
develop sustainable industrial policy or strategy in the textiles and clothing sector and on the
steps to be taken by ILO constituents and other stakeholders to begin this process.
11 ILO Working Paper 130

Methodology and limitations


The report draws on research and work conducted by the author over the last 15 years in sev-
eral countries with large and export-oriented textiles and clothing industries. This includes the
advisory support that the author provided in the development of the textiles and clothing strat-
egies of Cambodia and Jordan.

The analysis and summary of the strategies is conducted on the basis of Cambodia’s strategy
(SNEC, 2022), English translations of Viet Nam’s draft strategy from August 2021 (MOIT, 2021) and
Jordan’s Economic Vision (GoJ, 2022). ILO constituents and officials involved in the strategy devel-
opment process in Cambodia, Jordan, and Viet Nam were also consulted in preparing the report.

Cambodia, Jordan and Viet Nam were selected on the basis of the ILO’s involvement in and sup-
port for the development of these Member States’ industrial strategies and the presence of an
ILO-IFC Better Work programme in each country. This greatly facilitated the author’s access to
relevant information and key stakeholders.

It was not the intention, and nor was it possible, to analyze the impact of these relatively recent
sustainable industrial policies and strategies. The report sets out the scope and contents of the
three policies or strategies but does not provide an in-depth comparative analysis. It instead fo-
cuses on their development processes, with a view to providing guidance enabling other coun-
tries to develop policies and strategies in a coordinated, integrated and inclusive way. To that
end, it constitutes a first milestone towards strengthening understanding and building capacity
among ILO constituents in the textiles and clothing sector.

While this report sets out concrete steps to take when developing industrial and sectoral policies
and strategies in the textiles and clothing sector, there is no one-size-fits-all approach. Because
of the small sample size, the recommendations contained in the report would need to be fur-
ther contextualized when used by ILO constituents and other key stakeholders in other coun-
tries and sectors.

Structure of the report


The report begins with a brief introduction to industrial policies and strategies. This is followed
by an overview of sectoral and industrial policy and strategies in the textiles and clothing sec-
tor in different regions of the world. The third chapter contains an analysis and summary of the
textile and clothing policies and strategies of Cambodia, Jordan and Viet Nam. The fourth chap-
ter highlights the challenges and good practices that characterize the development of textiles
and clothing policies and strategies in the three countries. The final chapter summarizes the key
steps in the process of strategy development and implementation.
12 ILO Working Paper 130

XX 1 Industrial policies and strategies

The revival of industrial policies is a strategic response to the evolving challenges and opportu-
nities of the 21st century. It serves as a comprehensive approach to foster sustainable, inclusive,
and resilient economic growth in the face of modern challenges.

This resurgence is driven by several key factors. Rapid technological advancements in fields such
as artificial intelligence, robotics, and biotechnology necessitate strategic support to harness
these innovations for economic growth and competitiveness. Changes in global trade dynamics
require countries to position themselves strategically to benefit from global value chains while
protecting domestic industries from unfair competition. The importance of balancing econom-
ic growth with environmental sustainability and social equity has led to industrial policies that
guide industries towards cleaner technologies and practices.

Promoting economic resilience through industrial diversification helps buffer economies against
external shocks and reduces over-reliance on specific sectors. Industrial policies promote the cre-
ation of quality jobs and inclusive growth, fostering the equitable distribution of economic devel-
opment benefits across society. Targeted industrial policies contribute to regional development,
reducing disparities and promoting balanced growth within a country while enabling countries
to remain competitive in emerging industries such as renewable energy and digital technologies,
capitalizing on new opportunities. By guiding and supporting industries in this complex glob-
al landscape, governments can ensure long-term prosperity and stability (Kastelli et al, 2023).

While there is no universal definition of sectoral or industrial policy or strategy, development


organizations and researchers generally align on what it entails, using a variety of terms and
phrases (Box 1).

XX Box 1. Distinguishing “Policy” and “Strategy” in sectoral and industrial contexts

In the literature, the terms “sectoral or industrial policy” and “sectoral or industrial strate-
gy” are used depending on the focus of the stakeholders involved. “Policy” is typically used
by intergovernmental and government-only initiatives, while “strategy” is more commonly
associated with multi-stakeholder initiatives that emphasize collaboration and alignment
among various interests.

While the term “policy” is strongly associated with government actions, and while gov-
ernments play a leading role in the formulation and implementation of sectoral and
industrial policies, “strategy” is a more holistic term which is widely used across in-
dustries today, including in the textiles and clothing sector. It implicitly recognizes
the importance of collaboration involving both public and private-sector institutions.
It expands the scope beyond government agencies, as the activities necessary to achieve
objectives go beyond government policies and require support and input from multiple
stakeholders. It thus recognizes that a sectoral or industrial strategy should represent the
collective voice of the industry, its employers, workers, and multiple branches of govern-
ment, and that other key stakeholders should be consulted so as to take national, region-
al, and global dynamics into account.
13 ILO Working Paper 130

The term “sustainable” refers to the ability to maintain a certain rate or level over time.
The United Nations recognizes three dimensions of sustainable development: economic,
social, and environmental. A sustainable strategy, therefore, addresses these challenges
and opportunities in a way that can be maintained over time.

Accordingly, for the TCLF industries the phrase used in this report is “sustainable indus-
trial strategy”.

Reviews of industrial policies and strategies by the OECD and academic sources illustrate the
common elements described below:

●● Industrial policy is generally seen as any type of intervention or government policy that
attempts to improve the business environment or alter the structure of economic activity
towards sectors, technologies or tasks that are expected to offer better prospects for eco-
nomic growth or societal welfare than would occur without intervention (Warwick, 2013).
●● Industrial policies are generally categorized by domain and orientation. Domain (focus)
areas include product, labour, capital/credit, land, technology, trade, and systems or insti-
tutions. Orientation can be horizontal or targeted (Warwick, 2013).
●● Criscuolo et al. (2022) describe industrial policy as encompassing all types of instruments
intended to structurally improve the performance of the domestic business sector. A poli-
cy instrument is a tool used by policymakers to affect performance outcomes in the busi-
ness sector to achieve an objective. Policy instruments include research and development
grants, training programmes, public procurement or sectoral industry boards. Instruments
are categorized along two dimensions: target of intervention (i.e. orientation) and the
channel through which it operates.
●● Industrial strategies are a consistent and articulated group of policy instruments designed
to reach specific policy objectives (Criscuolo et al., 2022). Traditional objectives comprise
innovation, productivity and economic growth, and have been used to pursue social objec-
tives, such as the fostering of economic activity in disadvantaged areas. Countries adopt
industrial strategies for subsets of the economy that they deem deserving of support.
Selection criteria areas include sectoral, mission-oriented, technology-focused, and place-
based strategies. A strategy for the textiles and clothing industry would be considered a
sectoral strategy.
Regardless of policy domain or scope, there is universal agreement on the importance of coor-
dination between public and private actors and on securing strategic alignment in the context
of selective-strategic industrial policy (Warwick, 2013). Instruments are needed to govern coor-
dination between stakeholders from the public and private sectors at the subnational, nation-
al, and international levels. Such governance is a necessary enabler of successful policy inter-
ventions (Criscuolo et al., 2022). Another common theme is the need to build evaluation criteria
into the strategy to ensure that instruments are effective (Criscuolo et al., 2022; Warwick, 2013).
14 ILO Working Paper 130

XX 2 Textiles and clothing policies and strategies


around the world

Around the world, leading clothing and footwear exporting countries have taken different insti-
tutional approaches to policy and strategy development and implementation.

Several South Asian countries, including Bangladesh, India, and Pakistan, have ministries dedi-
cated to the textiles industry. India and Pakistan have released a textile policy document approx-
imately every five years, since at least 1985 in India and the early 2000s in Pakistan2. Bangladesh
has developed programmes for the textiles and clothing industry on an ad hoc basis since 2005.
All three countries also have multiple employers’ organizations representing different textile
products at different stages of their supply chain.

Sri Lanka established the Joint Apparel Association Forum (JAAF) in 20023 to lead the industry
through the turbulent times following the phase-out of the Multi Fibre Arrangement (MFA),
which governed world trade in textiles and garments from 1974 to 1994 and imposed quotas on
the amount that developing countries could export to developed countries. The JAAF is a pub-
lic-private forum of industry associations and government, led by the Ministry of Industry and
Commerce, which continues to guide the industry in Sri Lanka today.

Several countries in Asia have formulated five- or ten-year national development plans that out-
line key objectives and identify priority sectors and industries and cross-cutting, horizontal fo-
cus areas, which means that in some countries sectoral plans and strategies are integrated into
development plans. Among the top textiles and clothing exporting countries, at least China,
Indonesia, and Viet Nam have implemented such plans:

●● The textiles and clothing industry has been included in five-year national plans in China
since the first plan in the 1950s.
●● Textiles and clothing are also part of national plans in Indonesia, which has established a
directorate within the Ministry of Industry for the textiles and related industries.
●● In Viet Nam, every five to ten years the Government and industry associations develop
objectives and targets for the textiles and clothing industry.
In Latin America, private or public-private organizations tend to play a leading role in establish-
ing a vision and direction for the textiles and clothing sector. Unlike in Asia, ministries or depart-
ments dedicated specifically to the industry do not exist, and most of the countries in the region
have not had industrial strategies for the textiles, clothing, leather, and footwear sector. However,
Honduras has introduced a cross-cutting, public-private industry initiative called Honduras 2020,
under which strategies have been developed for six sectors including textiles and clothing. In El
Salvador, the textiles and clothing industry association has developed strategies for increasing

2
India has been releasing textile policy documents approximately every five years since at least 1985. These policy documents typi-
cally outline strategic goals and measures for the textiles and clothing industry and are intended to guide the sector's development
over the subsequent five years.
Pakistan has been releasing textile policy documents roughly every five years since the early 2000s. These policies aim to support
and enhance the competitiveness of the textiles and clothing sector and provide guidance for the sector's development over the
following five years.
3
Sri Lanka joint Apparel Association Forum. Accessed on April 19,2024. Available at: https://www.srilankaapparel.com/who-we-are/
15 ILO Working Paper 130

foreign investment and for entering the sportswear industry, but the Government has not played
a significant role. The export processing zone authority and the textiles and clothing association
are leading actors in the sector in Nicaragua and Guatemala, respectively.

Sub-Saharan African countries pursuing a textiles and clothing export-oriented strategy include
Mauritius, Madagascar, Kenya, Lesotho, Eswatini, and recently Ethiopia. Tunisia, Morocco, and
Egypt are also among the leading textiles and clothing exporters in the region, but have taken a
different development trajectory linked to their proximity to the European Union.4 Within Africa,
Ethiopia and Egypt are currently the countries most active in developing strategies and policies
specific to the textiles and clothing industry.

In March 2022, the European Commission adopted the EU Strategy for Sustainable and Circular
Textiles. Its aim is to create a greener, more competitive sector that is more resistant to global
shocks. The strategy addresses the entire lifecycle of textile products and proposes coordinated
actions to change how textiles and clothing are produced and consumed. It also incorporates and
helps implement commitments made under other EU initiatives including the European Green
Deal, the Circular Economy Action Plan and the European Industrial Strategy.

XX Box 2. Global level social partners and industrial policy

The International Organization of Employers (IOE) supports the three-dimensional defini-


tion of sustainable development. It does not have a specific definition or position on indus-
trial policy, but stresses that partnerships are key to achieving the SDGs and advocates for
companies, governments, and civil society to work together to achieve these global goals.
The IOE’s position on sustainable development states that “governments need to create
the enabling environments both for business to create jobs, drive economic growth and
development, and also the right collaborative frameworks for business, government and
civil society to work productively together” (IOE, 2022).

Industrial policies have long been promoted by workers organizations at the national,
regional, global and sectoral levels. IndustriALL Global Union describes industrial poli-
cy as a plan to encourage desired patterns of industrial development and growth. It tar-
gets specific industries and sectors and considers broader needs such as transportation
and communications infrastructure, education and skills training, research, and energy.
A sustainable industrial policy should create a healthy economy and quality employment
(decent, secure work that pays a living wage) while minimizing negative environmental
impact and advancing the interests of society (IndustriALL, 2013). This includes the effec-
tive implementation of labour standards, promotion of collective bargaining, resources
for labour inspection, dialogue between industry and trade unions, and labour laws that
restrict precarious work. It should be underpinned by social protection policies addressing
unemployment, retirement, and healthcare, to which industry is required to contribute.
As a workers’ organization, IndustriALL emphasizes social development and ensuring that
gains are passed onto workers in terms of defining sustainability.

4
Based on general research, the differences between the Sub-Saharan African countries and the North African countries lie in their
respective development trajectories and strategies for the textiles and clothing sector. SSA countries for instance have an export-ori-
ented strategy in the sector, have positioned themselves as low-cost manufacturing destinations, and many of them have benefited
from AGOA.
Tunisia, Morocco and Egypt, besides the geographical proximity to the EU, have mostly established preferential trade agreements
that give them a privileged access to EU markets. Unlike some Sub-Saharan African countries focusing on low-cost production, Tunisia,
Morocco, and Egypt have emphasized value-added products in the textiles and clothing sector. This includes higher-quality garments,
innovative designs, and specialization in niche markets.
16 ILO Working Paper 130

Table 4 in the appendix lists a selection of countries with large textiles and clothing exports and
the main stakeholders from government and the private sector involved in the textiles and cloth-
ing industry. In some countries the ministry responsible for industry or a ministry dedicated to
textiles takes the lead, whereas industry associations or public-private entities play a primary
role in others. One or more workers’ organizations are involved, but these are generally not the
drivers of industrial policies and strategies or consistently engaged in their formulation and im-
plementation.

Table 5 in the appendix provides information on textiles and clothing strategies in development
and those that have been launched, as well as historical policies and strategies. Most countries
developed a plan or strategy in preparation for and after the MFA phase-out in 2005 and issued
temporary policy responses during and in the aftermath of the Global Financial Crisis of 2008-
09 (Frederick and Staritz, 2012; Gereffi and Frederick, 2010).
17 ILO Working Paper 130

XX 3 Textiles and clothing policies and strategies


in Cambodia, Jordan and Viet Nam

Over the past six years, the ILO has supported the development of national textiles and clothing
policy and strategy in countries that had not developed strategies in the past, including Cambodia
and Jordan. Given their lack of domestic experience, the involvement by an international organ-
ization in these two countries has been instrumental. Viet Nam had already established a prec-
edent for strategy development and hence the role of the ILO was limited to providing inputs to
the most recent garment and footwear strategy.

3.1 History and stakeholder engagement


Cambodia published its first textiles and clothing-related strategy in March 2022, having begun
the process in 2017, when a survey of textiles and clothing firms in the country was conducted
to generate a better understanding of the state of the industry. This was followed by stakeholder
interviews and research conducted by an external advisor that assisted the Ministry of Economy
and Finance (MEF) in writing the initial drafts of the strategy document. “For the garment sector,
the Cambodia Garment, Footwear and Travel Goods Sector Development Strategy 2022- 2027
aims to strengthen resilience in these sectors with high-added value, competitive products and
services. Besides, the government focuses on the reform to enable friendly trade and investment
to maximize trade benefits which contribute to growth, diversification, and competitiveness of
the economy.” (ILO, 2022).

Central to the strategy's success is collaboration with key stakeholders, notably the Garment
Manufacturers Association of Cambodia (GMAC). GMAC, representing garment manufacturers
and exporters, plays a vital role in advocating for policy measures that foster growth and competi-
tiveness within the sector. Workers' organizations are also crucial stakeholders, though not explic-
itly referenced in the strategy. These organizations, such as the Cambodian Labor Confederation
(CLC) and the Free Trade Union of Workers of the Kingdom of Cambodia (FTUWKC), represent
the interests of garment workers and advocate for fair wages and decent working conditions.
International support has been instrumental in Cambodia's textiles and clothing strategies. The
ILO Better Factories Cambodia (BFC) project has provided valuable assistance throughout the
strategy's development and implementation. BFC's efforts focus on improving working condi-
tions, ensuring compliance with labour standards, and facilitating social dialogue within gar-
ment factories.

Sustainability and compliance with international labour standards are key themes within Cambodia's
strategies. The sector has faced scrutiny in the past over labour rights issues, prompting initiatives
to improve working conditions and labour practices. Cambodia also benefits from preferential
trade agreements with key markets, such as the European Union (EU) through the Everything But
Arms (EBA) scheme and the United States through the Generalized System of Preferences (GSP).
These agreements provide duty-free access, supporting the sector's export competitiveness.

In June 2022, Jordan released its Economic Modernization Vision for 2022-33. This is a nation-
al development plan led by the Prime Minister’s office and supported by government minis-
tries. Input was gathered at a national economic workshop that included 500 public and private
18 ILO Working Paper 130

stakeholders. As a national development plan, the Vision covers all prioritized industries in the
country, including textiles, as well as other horizontal aspects of development.

The Ministry of Planning and International Cooperation is responsible for providing support to line
ministries through the coordination of strategic planning, and the Royal Hashemite Court for mon-
itoring progress in accordance with tasks assigned to the Government in Letters of Designation.

Prior to the Economic Modernization Vision, concerted efforts had been made to create a specific
industrial strategy for the textiles and clothing industries in Jordan, but these were not adopted.
Industry stakeholders, particularly the Jordan Chamber of Industry (JCI) and the Jordan Garment
Accessories and Textile Exporters Association (JGATE), supported the development of a compre-
hensive background and strategy document between 2019 and 2021 in consultation with an ex-
ternal advisor (Frederick, 2021). Multiple industry studies were also conducted by the Netherlands
Centre for the Promotion of Imports from Developing Countries (CBI), the European Bank for
Reconstruction and Development (EBRD) and the International Trade Centre (ITC).

The development of a textiles and clothing strategy was interrupted by the COVID-19 pandem-
ic. Despite continuous efforts, it was not possible to gain support from employers’ associations;
both the JCI and JGATE requested that the issue be postponed until the release of the Economic
Modernization Vision. Following its launch, the Government focused its efforts on preparing ac-
tion plans for implementing the Vision's objectives. The JCI and JGATE have expressed their de-
sire to wait until the outcomes of this exercise are known before deciding how to proceed with
the sectoral strategy.

Jordan does not have a specific ministry or department within the Ministry of Industry dealing
with specific sectors, but rather a general directorate for industrial development. The Ministry
of Labour is engaged in national dialogues about the future of the textiles and clothing indus-
tries, faced with the need to increase employment opportunities for Jordanians. The JCI, JGATE
and the Association of Owners of Factories, Workshops and Garments (AOFWG), also known as
the “Syndicate” (which represents micro to large textiles and clothing factories), also play an ac-
tive role. The Jordan General Trade Union of Workers in Textile, Garment and Clothing Industries
(JTGCU) is the main industry-specific workers’ organization. Skills development falls under the pur-
view of the tripartite sectoral skills councils. Better Work Jordan (BWJ) seeks to improve working
conditions, compliance with labour laws and competitiveness via a range of activities, including
factory assessments, research, institutional capacity building, and promotion of social dialogue.

In Viet Nam, the Ministry of Industry and Trade (MOIT) leads industrial strategy development. The
country has developed national plans and strategies for both the garment and footwear indus-
tries since at least the late 1990s. In developing the latest strategy, the MOIT has hosted meet-
ings with key stakeholders and consulted with the main industry associations, including the Viet
Nam Textile and Apparel Association (VITAS) and the Viet Nam Leather, Footwear and Handbag
Association (LEFASO), and with international organizations such as the OECD and the ILO, through
the Better Work Viet Nam programme. The MOIT has shared drafts with relevant ministries in-
cluding the Ministry of Labour, Invalids and Social Affairs (MOLISA), as well as with the Viet Nam
General Confederation of Labour (VGCL), for their input and feedback. The release of the new
strategy was delayed because of COVID-19 disruptions and global market trends, which neces-
sitated a more thorough assessment of opportunities and challenges. This, combined with Viet
Nam’s commitment to sustainable development, such as achieving net zero carbon emissions,
required the MOIT to revise the content and to conduct an environmental impact assessment.
19 ILO Working Paper 130

The new strategy was approved by the Government of Viet Nam in December 2022 and is the
first to combine the leather and footwear industry with the textiles and garment industry: in
the past, each had a separate strategy. Having observed developments in other countries, and
through their participation in meetings hosted by the OECD, representatives of the MOIT had
come to recognize the significant similarities between these two sectors and that other major
production countries also tended to combine them under a single strategy. Once LEFASO repre-
sentatives had fully supported the idea, the MOIT worked closely with the business associations
of these two sectors to revise the draft strategy.

3.2 Relationship with horizontal strategies


As mentioned in chapter 1, national industrial policies often co-exist with multiple horizontal
policies and strategies that are developed during overlapping time periods and led by various
agencies with different objectives. For instance, many countries have a national export or eco-
nomic development plan driven by a top government body such as the Prime Minister’s office.
Horizontal strategies on education, skills development and employment are also common.

Such horizontal strategies also have important implications for industrial development. This is
the case if the textiles and clothing industry is:

●● specifically considered one of several industries covered by the strategy;


●● not considered as a priority industry from a national perspective and thus not included; or
●● the textiles and clothing industry plays such a dominant role in the country’s economy that
the horizontal strategy effectively only represents textiles and clothing.
In the first scenario, it is important to align the strategy for the textiles and clothing industry
with horizontal strategies that are likely to be pursuing similar objectives. If the second scenario
exists, implementing a textiles and clothing strategy will be difficult if national stakeholders do
not perceive it to be competitive.

In Cambodia, at least seven other national strategies were simultaneously being developed or
already in effect during the process of developing the textiles and clothing strategy. These in-
cluded the Rectangular Strategy, the National Strategic Development Plan (NSDP), the Industrial
Development Plan 2015-2025, the National Employment Policy 2015-2025 and the National TVET
Policy 2017-2025.

Jordan’s Economic Modernization Vision is a national development plan that includes the textile
industry, rather than a stand-alone industrial strategy. Other strategies include the Ministry of
Education Strategic Plan 2020 and the Sector Skills Council initiative (promoted by the Ministry
of Labour (MOL) under a new framework for TVET). Garments and Leather is one of seven prior-
ity sectors for which a national sectoral skills council has been created. On the other hand, the
Jordan Investment Commission, historically responsible for investment attraction, had not con-
sidered textiles and clothing to be a priority industry until its restructuring in 2019.

In Viet Nam, other relevant strategies include, but are not limited to, the Socio-economic
Development Strategy for 2021-2030, the Industrial Development Strategy through 2025, with
a vision to 2035, the National Master Plan for 2021-2030, with a vision to 2050 (relating to indus-
trial development), and of the resolution on building national industrial development policies to
2030, with a vision to 2045.
20 ILO Working Paper 130

3.3 The role of investment policies in fostering trade,


investment and decent work
The decision to develop industrial strategies is in most cases driven by a desire to grow trade
and investment, with the objective of increasing exports and employment. Industrial strategies
therefore typically include generous investment incentives such as corporate income tax holidays
and the establishment of industrial zones with duty-free input and machinery imports. This has
been coupled with preferential market access or the conclusion of free trade agreements (FTAs).

In this regard, and on the basis of its Tripartite Declaration of Principles concerning Multinational
Enterprises and Social Policy (MNE Declaration), the ILO has stepped up its efforts to assist its 187
Member States in advancing sustainable development and decent work through more inclusive
and integrated trade and investment agreements and frameworks (Box 3).

XX Box 3. Investment, industrial policies and decent work

The Tripartite Declaration of Principles concerning Multinational Enterprises and Social


Policy (MNE Declaration) provides clear guidance on how enterprises can contribute through
their operations worldwide to the realization of decent work. Its recommendations are
rooted in international labour standards and reflect good practices for all enterprises. It
also highlights the role of both host and home governments in stimulating sustainable
and responsible business, as well as the crucial role of social dialogue.

Trade and investment agreements increasingly make reference to the MNE


Declaration. Foreign investors tend to introduce new technology and skills which bring
economic and social development advantages. Government policies to attract foreign di-
rect investment (FDI) and promote trade as part of industrial policies provide important
entry points for advancing decent work. However, while FDI and trade offer potentially
substantial benefits for home and host countries, including contributions to the more ef-
ficient utilization of capital, technology and labour, governments seeking to develop and
implement industrial policies and strategies, together with social partners, should adopt
suitable measures to ensure that investment incentives help advance SDG 8, particularly
for lower-income groups and less developed areas.

The ILO has developed a range of activities and partnerships with international
organizations to support governments’ efforts to maximize the decent work contribution
of FDI and to harness trade for decent work. This work builds on the guidance provided
in the MNE Declaration to governments, social partners and (multinational) enterprises.
It is carried out in partnership with international organizations with complementary com-
petencies relating to trade and investment for sustainable development:

●● The ILO and the World Association of Investment Promotion Agencies (WAIPA)
have signed a cooperation agreement on FDI and decent jobs, sustainable busi-
nesses, more inclusive growth and better sharing of the benefits of FDI. ILO, the
International Training Centre of the ILO (ITCILO), and WAIPA regularly co-organize
courses on Effective investment facilitation and sustainable development.
●● The ILO and WAIPA recently surveyed investment promotion agencies (IPAs) to find
out how they integrate SDG 8 in their promotional activities and services and what
types of support IPAs need to accelerate progress in attaining this goal.
21 ILO Working Paper 130

●● The ILO and ITCILO also collaborate with UNCTAD, UNIDO, UN-OHRLLS and WAIPA
in maintaining an Executive College that trains IPAs from 20 least developed coun-
tries. The project is funded by the WTO Enhanced Integrated Framework.

An increasing number of trade agreements and preferences are predicated on a beneficiary


country’s ability to uphold international labour standards in law and in practice. International
labour standards and the fundamental principles and rights at work are also referred to in new
legislative initiatives to promote human rights due diligence by brands and buyers in key global
markets. This has attracted greater attention to these topics, as non-compliance may result in
the suspension or removal of preferential trade access or lost orders. The ILO has an important
role to play in assisting enterprises, governments and employers’ and workers’ organizations to
prepare for the new rules of the game, including through technical advice on how to incorporate
international labour standards into new and existing industrial strategies for the development
of a more resilient, inclusive and sustainable textiles and clothing sector.

3.4 Structure of the textiles and clothing strategies reviewed

3.4.1 General overview


The three strategy documents reviewed include three to six goals or objectives, accompanied by
activities for achieving the goals in the short, medium and, in some cases, long term.

Cambodia

The strategy for Cambodia defines short-term (three years) and medium-term (five years) goals.
The document includes sections on vision, historical background, current situation of the industry
in the country, challenges and opportunities, objectives and goals, activities to achieve goals, and
institutional arrangements. Cambodia’s strategy includes a total of five goals related to 50 activ-
ities, of which 37 are short-term and 13 medium-term. The five goals comprise human capital
development, working conditions and workers’ welfare, investment promotion with high-value
addition, increased investment in supporting industry, and promotion of export market diversi-
fication. Two of the five relate to sustainable social development, and over half (27 out of 50) of
all activities listed in the strategy pertain to these areas.

Viet Nam

Viet Nam’s document has three parts: the background to the development of Viet Nam’s textile,
leather and footwear industry; the status of development and factors affecting Viet Nam’s indus-
tries; and the development strategy to 2030, with a vision to 2035. Viet Nam’s objectives for the
industry have been similar across the years: increasing the localization rate and domestic textile
production, shifting to more advanced business models that involve design and branding, de-
veloping apparel brands, and building textiles and clothing industrial parks.

The current emphasis on developing large, specialized textile and garment industrial parks and
attracting investment to industrial zones also places strong focus on fabric and finishing, includ-
ing the provision of proper environmental treatment facilities. Human capital development is
referenced more in relation to the development of domestic brands in the fashion, leather and
22 ILO Working Paper 130

handbag industries and the shift to more advanced products. Viet Nam’s objectives are organ-
ized into four stages of the value chain: fashion, the textile industry group (textiles and clothing),
leather and footwear, and supporting industries.

The strategy’s proposed solutions/actions cover market development, attracting investment and
developing domestic value chains, raw material production, organization/ management, improv-
ing human resources, scientific and technological innovation and environmental improvements,
and financial mechanisms and capital sources.

Jordan

Jordan’s Economic Modernization Vision for 2022-33 comprises two pillars, namely economic
growth and quality of life, both of which are underpinned by sustainability. The economic growth
pillar covers five economic sectors, one of which is high-value industries. Textiles is one of nine
high-value industries. The Vision includes 10 initiatives for textiles.5 Two of these relate to human
capital development, with one focused on the expansion of vocational training and the benefits
to be derived from the sectoral skills council and the other on the promotion of local employ-
ment and on increasing the number of Jordanians in managerial positions in the sector. Any ac-
tivities related to working conditions or the environment will be addressed in the second broad
“quality of life” pillar.6

3.4.2 Comparison of the objectives, goals and topics included in the


strategies reviewed
The three strategies reviewed in this report largely focus on similar topics:

●● product upgrading beyond basic assembly;


●● market diversification;
●● establishing domestic backward linkages to textiles;
●● improving the business environment;
●● providing grants or financing for process upgrading/machinery improvements; and
●● developing training and skills development programmes.
These strategies place less emphasis on social and environmental factors. Viet Nam is the sole
country to have included environmental objectives. Cambodia is the only country to identify
working conditions and welfare for workers as an objective. Meanwhile, Jordan places the most
extensive focus on establishing an enabling environment for sustainable enterprises. Its strate-
gy includes four objectives relating to improving the business environment and one relating to
the expansion of Small and Medium-sized Enterprises (SMEs).

The labour-related objectives set out in the three strategies include skills development but rare-
ly cover other aspects of the ILO Decent Work Agenda (Box 8 in appendix). Strategies that have
been developed with greater involvement by the ILO and/or the ILO-IFC Better Work programme

5
The Vision also includes 15 general initiatives for manufacturing but does not provide details.
6
The draft strategies developed in consultation with industry stakeholders include objectives such as building up MOL’s inspection
and enforcement services and continuing the BWJ’s factory assessments in order to further improve competitiveness through a cul-
ture of compliance.
23 ILO Working Paper 130

include more decent work dimensions such as working conditions, gender, and respect for hu-
man and labour rights. Examples from the three countries are included in Table 1.

XX Table 1. Objectives and aims of the apparel strategies studied

Aim Countries Objective

General productivity Jordan Enhance productivity; improve cost competitiveness (initiative 5).
and competitiveness im-
Viet Nam Increase economic value of industry.
provement

Promote investment with high-value addition (objective 3; 11 ac-


Cambodia tivities); enhance predictability and stability of the sector to facili-
tate more long-term investment and improve reputation.

Create subsector data centre/database (initiative 7).

Develop unified governance framework for the sector (initiative


Improve business envi- 8).
Jordan
ronment
Streamline sector-specific laws and regulations (initiative 9).

Develop detailed plan for the sector (initiative 10).

Raise awareness of the impact of free-trade agreements and


Viet Nam support businesses to take full advantage; meet rules-of-origin
requirements.

Cambodia Promote export market diversification (objective 5; 5 activities).

Jordan Attract new investments in the sector (initiative 4).


Growth and marketing; Textiles, garment & footwear industries meet most domestic
diversification consumption demand, continue as country’s main export indus-
Viet Nam
try; be one of world’s leading producers and exporters of textiles
and garment products.

Attract investment in supporting industry (objective 4; 8 activi-


Cambodia
ties); rationale: to reduce cost of doing business and lead times.

Develop fabric manufacturing (vertical integration) to fulfil the


Backward/upstream sup- needs of export markets in one season (initiative 1); rationale:
Jordan
ply chain linkages to tex- raw materials to speed up supply chain and increase added val-
tiles ue.

Foster links between foreign and domestic enterprises and de-


Viet Nam velop the domestic value chain from raw material production to
the final product.

Technology upgrading 1
Viet Nam Increase application of science and technology in production.

Increase integration and collaboration between large and small


SMEs Jordan
enterprises to expand small enterprises (initiative 6).
24 ILO Working Paper 130

Aim Countries Objective

Further strengthen human resources (objective 1; 12 activities)


to increase productivity and production capabilities, and create
Cambodia
career paths for Cambodian workers; managerial and technical
positions.
Human capital (skills de-
Promote local employment; increase Jordanians’ managerial po-
velopment)
Jordan sitions (initiative 3); expand vocational training; benefit from sec-
toral skills council (initiative 2).

Develop human resources for knowledge-intensive positions


Viet Nam
(technical and design/brand development). 2

Continue to improve working conditions and welfare for work-


Cambodia
ers (objective 2; 15 activities).
Working conditions and
Ensure that the average income of workers in the textiles, gar-
workers’ welfare
Viet Nam ment, leather and footwear sectors is above 90 per cent of the
average income for all workers by 2025.

Ensure green and sustainable development and meet interna-


Environment Viet Nam tional labour, environmental and safety standards; ensure sus-
tainable development under a circular economic model.
1
India and Pakistan: technology upgrading funds have been significant aspects of polices/strategies. 2 Knowledge-intensive
positions are non-production workers in positions related to management, design, engineering, market development and R&D.
Source: compiled from published or draft strategies.

3.5. Performance indicators and implementation arrangements


Both Jordan and Viet Nam have included measurable performance indicators in their strate-
gies, allowing them to benchmark their outcomes. For example, Viet Nam’s industrial strategy
for textiles, clothing and footwear includes an aim to increase the average income of workers in
the industries to 90 per cent of the average wage of general workers nationwide by 2025, and
to reach equivalence with the national average wage by 2030. Meanwhile, Jordan’s Economic
Modernization Vision aims to create over 149,000 jobs in textiles (Table 2). Although Cambodia’s
strategy has a strong focus on sustainable social objectives, it does not include specifics about
financial resources or other implementation arrangements, and important private-sector organ-
izations are not included in the working group that has been set up to develop these.

XX Table 2. Examples of textiles and clothing strategy targets/performance indicators

Exports Jordan Increase exports by 3-4 times.

Viet Nam US$84-86 billion (textiles, garments, footwear)


(2030).

Employment Jordan Create over 149,000 jobs for Jordanians.

Environment Viet Nam Become known as responsible T&G manufac-


turer and exporter (2030).

Textiles/backward linkages Viet Nam Localization rate of 50 per cent by 2025 and
55-60 per cent by 2030.
25 ILO Working Paper 130

Working conditions/wages Viet Nam Increase average income of workers in the tex-
tile, garment and footwear industries to 90
per cent of the average wage of general work-
ers nationwide (2025) and then to equivalence
with the national average (2030).

The performance indicators and implementation arrangements for the three strategies can be
summarized as follows:

●● Cambodia’s strategy will be implemented by an inter-institutional working group within


the committee on economic and financial policy (CEFP). The strategy’s action matrix only
includes government ministries, most often the Ministry of Labour and Vocational Training
(MLVT) (for measures related to human capital and worker welfare), the MEF (all; particu-
larly for backward linkages and market diversification), the Ministry of Industry, Science,
Technology, and Innovation (MISTI) (measures related to the business environment and
backward textile linkages), the Ministry of Commerce (MOC) (measure on market diversi-
fication), the Council for the Development of Cambodia (CDC) (human resources, invest-
ment attraction) and the Ministry of Environment (measure related to establishing back-
ward linkages). The action matrix furthermore lacks specifics on how the strategy will be
implemented. These will be decided by the above-mentioned working group; however, it
has not met in the first six months since the strategy was released.
●● Viet Nam’s draft strategy includes a section on implementation organizations which out-
lines four groups of actors: (1) the MOIT; (2) other relevant ministries; (3) provincial author-
ities and centrally run cities; and (4) industry associations. Other ministries listed include
Planning and Investment (MPI), Finance (MOF), Science and Technology (MOST), Natural
Resources and Environment (MONRE), Education and Training (MOET) and Labour, Invalids
and Social Affairs (MOLISA). The VGCL is not mentioned in the strategy and was not sig-
nificantly involved in its development. However, it is expected that it will be an important
stakeholder during the implementation phase.
●● A vision and strategic roadmap accompanies Jordan’s Economic Modernization Vision for
the 2022-23 period. Each initiative will include objectives, stakeholders subdivided into in-
itiative owners and participants, a timeline with start and end points, metrics to track the
progress and delivery, and a checklist of deliverables. Textiles products are fully included
in that roadmap. A summary of the initiatives for textiles products is available, and the
overall vision will be implemented in three phases, with 93 per cent of the 344 initiatives
to be implemented in phase I (2022-2025).
●● Implementation thus remains a challenge in all three countries. The inclusion of sustain-
able objectives is an important first step towards sustainable development, but without
an implementation plan, dedicated stakeholders assigned to tasks, and financial resourc-
es, there is a high risk that these strategies will have a minimal impact. This review of the
three strategies clearly illustrates the need for strong stakeholder coordination, clear lead-
ership and inclusion of actionable steps, and at least baseline financial resources, as part
of the strategy development process.
26 ILO Working Paper 130

XX 4 Good practices

Good practices and common challenges related to each aspect of strategy development are out-
lined below. These draw on lessons from the industrial strategies reviewed, as well as work un-
dertaken by the author in textiles and clothing exporting countries.

4.1 Stakeholders involved in development and implementation


It is critically important to involve, at the adequate level, government and employers’ and workers’
organizations in the development of industrial strategies. In some countries, particularly those
that are developing industrial strategies for the first time, this may require the development of
new institutions or further strengthening the capacity of existing institutions with the support
of key actors and international organizations such as the ILO.

In addition to the tripartite constituents of the ILO, it is important to engage a broad range of
industry stakeholders. This will help ensure that the strategy becomes comprehensive and cov-
ers a wider range of areas that need to be addressed in a consistent manner. It is also critically
important to engage brands, buyers and lead firms. In the textile and clothing industry, these
wield great power and resources, and their practices are key to achieving the goals of sustaina-
ble industrial strategies, whether in terms of attracting foreign direct investment, technological
upgrading, adding local value, or improving working conditions. It is highly recommended to
establish an industry board or group of key and relevant stakeholders to oversee and guide the
formulation of the strategy. This group could be supported by the ILO or other UN entities and
meet or communicate regularly to discuss issues and monitor the progress of the strategy once
it is implemented. Figure 1 and Table 3 list private and public actors that could be included in
the development of industrial strategies. The content in this figure and table is not exhaustive.
Indeed, the process could include NGOs, cooperatives or informal workers depending on their
characteristics and on national contexts and realities.

When engaging industry stakeholders and establishing industry boards, it is critically important
to ensure a balanced representation of women and men. In the textiles and clothing industries,
gender inequalities are still common in many countries, and women often struggle to have their
voices heard.

While it is important to engage multiple entities, clear leadership is needed in order to move the
development and implementation of the strategy forward. In most cases, the Ministry of Industry
will be the prominent public agency, acting in close partnership with the main industry associa-
tion and a sectoral union/national union federation.
27 ILO Working Paper 130

XX Figure 1. Stakeholders for strategy development

Yellow: government agencies. Green: social partners. Red: public-private organizations. Blue/dotted lines: external, internation-
al actors. Source: Author.

XX Table 3. Stakeholders and descriptions

Entities Description

Ministry of Commerce, Normally the government agency involved in developing and implementing the strate-
Economy, Industry and/or gy. This also includes industry-specific ministries where they exist.
Trade

Ministry of Employment or Labour and employment ministries are responsible for promoting job creation and for
Labour promulgating and enforcing labour laws and should be involved in all aspects.

Ministries of Environment, The involvement of ministries of environment and energy is key to enhancing the envi-
Utilities and/or Energy ronmental sustainability of the industry.

Ministries of planning often play a key role in geographic planning and infrastructure
Ministries of Finance and/or investments, including in Export Processing Zones. Ministries of finance or planning are
Planning responsible for administering financial resources and coordinating donor funding to
implement sustainable industrial strategies.

Investment promotion agencies (IPA), export promotion agencies and special econom-
Export and investment pro-
ic zone (SEZ)/industrial park (IP) authorities and other public-private development agen-
motion agencies
cies play a key role in marketing and infrastructure development.

Representatives from all levels of education should be involved in or made aware of the
Ministry of Education and process to ensure that the strategy will align with relevant education and training initi-
Training atives. Technical and vocational education is particularly important for developing skills
needed now and in the future.

Education and training pro-


Universities, technical and vocational training centres and innovation/development/
viders; skills development
skills councils are involved in human capital development.
councils

Employers’ organizations provide a collective voice for employers. The presence and
Employers’ associations
structure of such organizations varies by country.
28 ILO Working Paper 130

Entities Description

Workers’ organizations provide a collective voice for workers. The presence and struc-
Workers’ organizations
ture of such organizations varies by country.

Development partners include multilateral development agencies such as the ILO, the
Development partners and in- ITC, the OECD, UNIDO and the World Bank, and development partners with offices and
ternational organizations industry-specific projects (e.g. SIDA, USAID, DFID, GIZ). These entities provide various
forms of development support.

International financial institu- Global and regional development banks may provide financial assistance to achieve ob-
tions and development banks jectives. These organizations also sponsor research initiatives as development partners.

Industry-specific global and


These actors can provide an external voice and ongoing guidance and insight on global
regional experts/advisors,
and regional activities in the industry.
think tanks and buyers

4.2. Development process


The strategy should be developed in a timely manner, as longer time frames run the risk of per-
sonnel turnover and outdated research. Developing the first strategy will be time-consuming,
but once a process and organizational structure is in place it will become more seamless.

Strategy development should be based on a comprehensive map of the entire supply chain to
ensure full understanding of global dynamics and the country’s footprint in the chain. Mapping
is the process of identifying the structural elements along the chain, including the firms, prod-
ucts, activities, stakeholders and geographic locations involved in taking a good or service from
concept through production to the final consumer (Frederick, 2019). Special attention should be
given to the key role of brands, buyers and leading firms, given their prominent roles in global
textiles and clothing supply chains.

Background research should also identify global trends (macro and industry-specific) that may
impact the future of the industry in the country, including competition from other countries and
the potential of the textiles and clothing sector to pave the way for broader developmental and
structural change. National, economy-wide factors should also be considered during strategy
development as these can limit success. Examples are national debt (Sri Lanka), unfavourable
US perception after terrorist attacks (Pakistan, 2001) or limited capacity of government agen-
cies to implement and enforce policies (Ethiopia, Laos and Madagascar – OSH improvements)
(Frederick and Charbonneau, 2021).

An initial study should provide a “state of the industry” analysis which should include statistics
on employment and analyses on environmental sustainability, identify firms, clusters, and sup-
porting organizations within the country, and provide a brief summary of the historical evolu-
tion of the industry in the country, including the challenges it has faced. In most countries this
can be compiled by gathering information and research from domestic stakeholders. The initial
study should be shared among members of the strategy development team, so that everyone
involved can agree on the definition and scope of the industry. A lack of agreement can other-
wise impose a significant, ongoing constraint on strategy development. The importance of en-
suring an enabling environment for sustainable enterprises across the industry, and economy
as a whole, should be borne in mind during the preceding steps. Such an environment is a nec-
essary precursor to the success of any industrial strategy.
29 ILO Working Paper 130

The goals and objectives of strategies should also reflect the goals and objectives of the ILO con-
stituents and other stakeholders involved. Since the ministry of industry is in practice most often
the leading agency and its main objective is to improve economic conditions, it is critically impor-
tant to also engage the ministry of labour or employment, as well as social partners, to ensure
that social and labour issues are addressed. It is equally important to ensure that other line min-
istries are included in order to address environmental issues, infrastructure development, energy
needs and other factors. To this end, governments should establish a clear procedure for coordi-
nation between ministries which promotes the consideration of social and environmental goals.
This procedure should also provide for participation by other relevant departments including, but
not limited to, those concerned with planning, trade, technology, science, education and health.

Ideally, the industry strategy should be embedded within a broader sustainable development
framework that addresses cross-cutting themes which go beyond the scope of an industry. If
not, it is important to ensure the industry strategy aligns with other ongoing strategies at the
national, sectoral and local levels. Some countries have a national model for inter-ministerial col-
laboration that is applied in sectoral strategy development. If this does not exist, each sectoral
strategy will need to form sector-specific working groups (as Cambodia is proposing). Where a
national model of collaboration does not exist, more attention will be needed to ensure that oth-
er factor/topic-specific policies in the country are aligned with the sector’s strategy.

It is also common for international and regional development organizations, agencies and banks
to finance research to provide a country with guidance. Often, multiple institutions are actively
engaged in research or strategy development in the same country, with overlapping objectives.
Lack of coordination among projects led by development partners leads to significant overlap
in activities and conflicting outcomes. Better coordination of development assistance within
countries and expansion of the types of activities funded by development agencies will greatly
improve outcomes in host countries (Box 4). For instance, Better Factories Cambodia organizes
a development partners’ meeting twice a year to discuss ongoing and upcoming projects in the
country so as to raise awareness, share information and eliminate duplication.

XX Box 4. Fostering policy coherence among development partners

Challenge: Multiple research projects (EBRD, CBI, ITC, ILO) were financed by multi-stake-
holder institutions and European national development agencies to support Jordan’s tex-
tiles and clothing industry, largely in response to new EU trade preferences issued in 2018-
19. Donors attended an annual coordination meeting where they shared objectives and
achievement goals, but not details, to ensure there was no overlap at the sector level. The
Ministry of Planning was responsible for donor coordination, but only at a very high level.

Outcome: The projects provided useful research, but all focused on the same topic (SMEs
and exporting), the results were not widely disseminated or published, they did not pro-
vide for financial support for implementation, and there was no capacity within the coun-
try to fill the recommendations in the reports.

Lessons learned: Had donors coordinated their efforts prior to research, resources could
have been reallocated into phases (1) research, (2) filling structural gaps identified and (3)
implementing recommendations. Lack of coordination resulted in three research projects
on the same topic with no resources to implement. Projects were carried out by external
consultants with no local capacity development or knowledge transfer.
30 ILO Working Paper 130

Best practice: Donors should communicate on a more regular basis (quarterly) and dis-
cuss projects and programmes at industry-specific levels and seek to provide complemen-
tary support to a country in which projects build on other project results.

4.3. Focus areas and performance indicators


A sustainable strategy should include economic, social and environmental objectives and set re-
alistic performance indicators to measure progress.

While industrial strategies can take many forms, it is critically important that they are set out in
three clear parts: (1) the strategy itself; (2) the implementation plan; and (3) supporting research.

The strategy should be based on a clear and compelling vision and include: (1) objectives/goals;
(2) the activities needed to achieve goals; (3) targets/performance indicators; and (4) institu-
tional arrangements. Objectives should be distinct and accompanied by the activities needed
to achieve the goals in the short, medium and, in some cases, long term. The objectives should
encompass multiple dimensions, including economic, social, and environmental aspects, while
also addressing the diverse opportunities and challenges that arise along the textiles and cloth-
ing supply chain. The strategy should be succinct and focused, with additional information in
appendices if necessary.

The implementation plan should include: (1) a timeline of activities; (2) the stakeholders involved
and those responsible for activities; (3) the financial resources needed; and (4) sources of finan-
cial resources.

Supporting research should provide context on how and why certain objectives and goals are
included. It should include sections on: (1) historical background; (2) the current situation of the
industry in the country; and (3) challenges and opportunities.

The document itself should be long enough to highlight key points, but short enough to read
and fully comprehend in less than one hour. Additional materials can be published as separate
reports or as appendices to clarify certain points.

Sustainable industrial strategies should include performance indicators for each objective and
activity. Targets for decent work opportunities – such as an enabling environment for sustain-
able enterprises, skills development, gender equality, equal pay, elimination of violence and
harassment, wage growth, unionization and formality – should also be included, as well as en-
vironmental considerations. They should be quantifiable to the extent possible, and realistic.
More ambitious social, environmental or economic objectives can be included as part of a long-
term vision, and these should be aligned with broader national development strategies and the
Sustainable Development Goals, but short-term objectives and achievements should be feasi-
ble and manageable.

The need to build or enhance the capacity of key institutions and actors is an important element
of sustainable strategy development that cannot be overlooked (Box 5). This may be an objec-
tive and can be accompanied by performance indicators. For example, one objective might be to
enhance the capacity of industry-specific stakeholders to effectively implement strategy goals.
Associated measures could include the creation of specific staff positions in an organization and
securing the financial resources needed for them.
31 ILO Working Paper 130

XX Box 5. Building an enabling environment (institutions and staff) can be an objective

Developing and implementing a strategy requires (1) relevant institutions to exist and (2)
having staff with the skills and time necessary to implement the activities. This is often
overlooked but is critically important.

Challenge: An initial review of Jordan’s textiles and clothing industry found that lack of staff
across critical institutions would prevent the implementation of a strategy in the country.

●● The exporters’ association lacked a full-time director and supporting staff; the prima-
ry representative was an elected board member from a textiles and clothing factory.
●● The SME association lacked a full-time position or support staff and had insufficient
funding to implement activities.
●● The industrial sector employers’ association did not have staff dedicated to the tex-
tiles and clothing industry.
●● The BWJ was filling the coordination gap in the country, but this was beyond the
mandate of the programme and required time and effort from the director.
Outcome: Resources were redirected from development partners in the country to pro-
vide partial funding to support the missing staff roles. Knowledgeable, full-time personnel
needed to be put in place to enable the country to move forward.

Lessons: (1) Development partners may need to step out of their mandated roles to fill
necessary coordination gaps in the country; (2) External advisory support helped identify
structural bottlenecks preventing strategy development and implementation; (3) Institutions
and staff are needed in order to implement strategic objectives.

Once a country has a process in place to develop and implement strategies, it is important to eval-
uate previous objectives and achievements. For example, Viet Nam’s strategy document builds
on previous strategies, objectives and achievements and provides solutions (Box 6).

XX Box 6. Evaluating the successes and challenges of previous strategy objectives

Viet Nam’s strategy development process evaluates past objectives and achievements.
For example, increasing cotton production had been an objective in the previous strategy.
However, further research found that the country did not gain a competitive advantage
by growing cotton: it is not as profitable as other crops, and using domestic cotton is not
a requirement in FTAs. As a result, it will no longer be an objective.

The numbers of workers that received short- and long-term training were well below tar-
get, suggesting that the targets were set much too high and should be revised in the fu-
ture. Targets were not met because of the limited financial resources available and dif-
ficulties in attracting students to the training programmes. As a result, this strategy will
focus on identifying a new, sustainable funding source and on research/marketing in or-
der to increase enrolment.
32 ILO Working Paper 130

Viet Nam has striven to increase localized fabric production for two decades and has contin-
ually sought to increase investment in this area. Further evaluation discovered underlying
issues preventing new investments. For instance, it has been difficult to attract investment
in textile dyeing because of localities’ environmental concerns. Viet Nam has similar high
discharge standards for textile and dyeing enterprises to those of developed countries, but
has not provided centralized wastewater treatment or supportive policies to encourage
private investment. The development of textiles and clothing-specific industrial zones will
need to incorporate wastewater treatment systems that comply with international stand-
ards and environmental regulations in order to increase investment.
33 ILO Working Paper 130

XX 5 Initial steps in the strategy development process

Creating a textiles and clothing industry strategy for the first time can be an efficient and me-
thodical process.

The following steps can help constituents in a country to develop the institutional structure to
begin the process and to write and implement the strategy.

XX Figure 2. Steps in strategy development

Preparation: identify stakeholders and gather relevant


background information
1. The lead organization should appoint a focal person dedicated to leading the effort. This per-
son will stay engaged throughout the entire process. Document the steps taken along the
way so that the information can be provided to a new focal person if necessary. Engage the
community of development partners in the country to financially support these positions for
at least one year.
2. Determine if there is a precedent for developing industrial policies or strategies in the coun-
try. For example, has this industry or any other industry developed or implemented a strategy
in the past? Documentation is also important because it can be shared with other industries
that might formulate a similar initiative in the future.
3. Identify any national institutional structures for developing policies and strategies. For ex-
ample, is there a centralized five-year planning process? Have strategies been developed for
horizontal objectives such as education or spatial planning?
4. Identify all potential industry-specific stakeholders and representatives from other econo-
my-wide institutions (Figure 1 and Table 3).
5. Convene ILO constituents and stakeholders for an initial meeting to raise awareness of the
initiative, and gather information on any prior, current or future projects that might provide
useful background for strategy development. Ensure a balanced representation of women
34 ILO Working Paper 130

and men. If a strategy has been developed by another industry in the country, include a rep-
resentative from that process to provide insight.

Conduct preliminary background research


1. Prepare a background document on the history and status of the country’s footprint in the
value chain of the industry. This should include information gathered from stakeholders at
the initial meeting as well as relevant data from the national statistics organization and in-
dustry associations, ensuring the use of gender-responsive data.
2. Conduct a SWOT analysis, including national to global perspectives. This should consider past,
present and future trends.
3. Convene the stakeholders to present the results of the research, so as to establish a mutu-
al understanding of the country’s footprint in the industry (including definitions of what the
industry entails).
4. Identify gaps in the research. Determine whether more data is necessary prior to moving
forward with strategy development. If not, finding missing data and filling specific research
gaps can be included as part of the strategy’s objective.

Form the strategy development team


1. Form a diverse and gender-inclusive strategy development team. The composition will vary
according to the institutional structures of the country. It should primarily comprise the ILO
constituents and stakeholders identified and included in the initial meetings. In small coun-
tries, the team may be the same as the initial group. In larger countries with many stakehold-
ers, a smaller core team needs to be established to ensure progress.
2. Designate a focal person from each organization in the full advisory group to be the strate-
gy representative. This woman or man is responsible for representing the activities of their
organization to the textiles and clothing strategy committee, and for reporting the actions of
the committee to their organization.
3. Ensure that the core team includes the ILO constituents and all industry stakeholders neces-
sary to build a sustainable strategy, in particular actors that advocate on behalf of workers
(i.e. workers’ organizations, the ILO, the ministry of labour), women, vulnerable groups and
the environment.

Write the strategy


1. As a group, develop a clear and compelling vision statement and a limited set of core objectives.
2. Divide the strategy development team into gender-balanced groups to identify objectives,
activities, performance indicators, estimated costs and potential financial sources.
3. Alternatively, most countries can begin with a two-pillar strategy focused on people (working
conditions, human capital development) and firms (economic competitiveness). The focus
should be on the primary stage of the supply chain in the country. 7 Using the same baseline
information, one team (Ministry of Employment/Labour, ILO representatives and workers’ or-
ganizations) should develop the component related to working conditions and human capital

7
If the objective is to develop a strategy for multiple stages or groups within the industry, such as textile production, cotton produc-
tion, or home furnishings, carry out the process by separating these first and combining them later.
35 ILO Working Paper 130

development. Another team, composed of the Ministry of Commerce/Industry/Trade and em-


ployers’ organizations, would focus on economic objectives. Each draft should incorporate ob-
jectives, activities (short-, medium-, long-term), performance indicators and financial needs.
If developing a textile component industry or demand for the national market are primary
focus areas, a third team dedicated to environmental conditions should be formed as well.
4. The person leading the initiative should be included in the development of both pillars. She
or he should continue to document the process and provide liaison in order to avoid dupli-
cated efforts and ensure that aspects which cut across both focus areas (such as training and
education) are addressed.
5. Convene the groups of stakeholders to review and validate draft documents.
6. Present drafts together as one document to the larger group of stakeholders for input. Team
leaders should incorporate this input and determine if another round of edits is necessary.
Ensure that this process is democratic, inclusive, gender-balanced and transparent and al-
lows for accountability.

Finalize and formalize the strategy


1. Team leaders should combine documents and add relevant background information from
the initial stages to create a full, final document. Prior to formalizing the strategy, review the
strategy checklist below (Box 7).
2. Embed the strategy into the country’s policies and legislation to ensure it transcends turnover
in government agencies. Document and archive the actions taken in developing the strategy
so as to ensure transparency and prevent information becoming embedded in one person.
3. Create a version of the full strategy document in the national language and also an official
English translation for external industry stakeholders and international organizations.

XX Box 7. Strategy checklist

When finalizing a textiles and clothing industry strategy, policymakers should consider the
following questions to help ensure completeness:

●● Are the objectives specific and do they address unique activities?


●● Are all relevant dimensions of the ILO Decent Work Agenda reflected (see Appendix),
as well as other relevant global indicators?
●● Are all key and relevant stakeholders included?
●● Is there an organization responsible for each activity included in the strategy? If
more than one organization will be involved, is there clear leadership?
●● Do all objectives and activities have an associated metric? Are the metrics realistic?
●● Have estimated costs and potential funding sources been identified?
●● Does the strategy incorporate other strategies pursued in the country? For exam-
ple, does it consider how participation in the textiles and clothing industry helps to
achieve the overall development goals of the country?
●● Does the strategy address how the country’s participation in the textiles and cloth-
ing industry will help the country transition into other industries?
36 ILO Working Paper 130

●● Is a transformative agenda for gender equality, inclusion and diversity reflected in


the strategy?

Implementation/review
1. Present the strategy to the community of development partners in the country. Identify spe-
cific areas in which technical or financial assistance is needed.
2. Hold regular meetings with relevant and strategic stakeholders, including ILO constituents,
and consult other relevant ministries and agencies to ensure that progress is made.
3. Monitor and evaluate the strategy’s progress as frequently as necessary on the basis of a
monitoring and evaluation plan.
37 ILO Working Paper 130

XX Conclusion

A clear, holistic industry strategy and a coordinated institutional environment can contribute
to setting a country on the path to sustainable development. When developing new or updat-
ing existing sustainable industrial strategies for the TCLF sector, ILO Member States can learn
lessons from past experiences of other countries and adapt them to their existing institutional
framework and available resources. This paper provides relevant background information from
a range of TCLF exporting countries, makes recommendations related to key aspects of strate-
gy development, and sets out the steps needed to begin the process.

Sustainable industrial strategies should represent the collective voice of the industry, its employ-
ers and workers, as well as multiple branches of national and local government. Proper prepa-
ration and an inclusive stakeholder committee are important first steps. Sustainable industrial
strategies should carefully consider global, regional and national dynamics and take into ac-
count the views of ILO constituents and key industry stakeholders, and background research. To
be sustainable, these policies or strategies should address economic, social and environmental
factors and set out measurable targets designed to reach realistic objectives. Finally, sustaina-
ble industrial policies should be developed together with an implementation plan that assigns
clear roles and responsibilities and is supported by dedicated financial and human resources.
Appendix

38
XX Table 4. Supporting stakeholders in selected textiles and clothing (T&C) exporting countries

ILO Working Paper 130


Country Combined Main Government Textiles and Clothing Workers’ Association Selected ILO Development
T&C Exports Agency/Department Industry Associations Cooperation Programmes
US$ (Billions)

2012 2021

China 255 321 Ministry of Commerce China National Textile & National Committee of the
Apparel Council (CNTAC) Chinese Financial, Commercial,
Light Industry, Textile and
Tobacco Workers’ Union

European 111 156 Directorate-General for The European Apparel IndustriALL – European Trade Advancing decent work in sup-
Union Environment (DG ENV) and Textile Confederation Union ply chains through sectoral so-
(EURATEX) cial dialogue (2022 – 2024)

Viet Nam 1 18 42 Ministry of Industry & Trade VITAS, LEFASO, Viet Nam Viet Nam General Better Work (2009 - present);
(MOIT) Cotton & Yarn Association Confederation of Labour
Future of work in textiles and
(VGCL)
clothing: forecasting and devel-
oping skills for promoting de-
cent work and productivity in the
sector (2021 – present)

India 29 38 Ministry of Textiles (TEXMIN) Apparel Export Promotion Many Promoting Fundamental
Council (AEPC), Clothing Principles and Rights at Work
Manufacturers in Cotton Supply Chain (2017 –
present);
Association (CMAI),
Confederation of Indian Promoting Sustainable
Apparel Exporters (CIAE) Enterprises in India (2021 –
present)

Bangladesh 2
21 37 Ministry of Textiles & Jute Many Better Work Bangladesh
Bangladesh Garment
Department of Textiles (DOT)
Manufacturers and Exporters (2014 - present);
Association (BGMEA); Knitwear
Improving working conditions in
Manufacturers and Exporters
the ready-made garment sector
Association (BKMEA)
(2017 – present)
39
Country Combined Main Government Textiles and Clothing Workers’ Association Selected ILO Development
T&C Exports Agency/Department Industry Associations Cooperation Programmes
US$ (Billions)

2012 2021

ILO Working Paper 130


Türkiye 25 33 Ministry of Trade Turkish Textile Employers’ Textile, Knitting and Clothing Job creation and entrepreneur-
Association; Turkish Clothing Industry Workers’ Union ship opportunities for Syrians
Manufacturers’ Association (Teksif) under temporary protection
(TGSD); Istanbul Apparel and host communities in Turkey
Exporters Association (iTKiB) (2018 – 2023);

More and better jobs for women


(2019 – 2022)

United States 19 19 Department of Commerce Many UNITE HERE


of America (DOC), Office of the United
States Trade Representative
(USTR), Federal Trade
Commission (FTC)

Pakistan 12 17 Ministry of Textile Industry Pakistan Ready-made Many Better Work (2022 - present);
(MINTEX) (2004) Garments, Manufacturers
International labour and envi-
& Exporters Association
ronmental standards applica-
(PRGMEA)
tion in Pakistan’s SMEs (2016 –
present)

Cambodia 4 8 Ministry of Economy & Garment Manufacturers Many Better Factories Cambodia - BFC
Finance (MEF) Association Cambodia (GMAC) (2001 - present)

Jordan 1.1 1.9 Ministry of Industry (MIT) JCI (2005), JGATE, Syndicate JTGCU Better Work - BWJ (2008)

1
Textiles and clothing figures are estimated for 2021. 2
Textiles figures are estimated for 2021. Source: World Trade Organization. (2022). Merchandise exports by product
group - annual. https://stats.wto.org/
XX Table 5. TCLF-specific industrial policies and strategies

40
Strategy
Country Name Segments Status Previous Strategies
Duration

ILO Working Paper 130


Development Strategy for Viet Nam’s
Apparel, Textiles, Leather,
Viet Nam Textiles and Clothing, Leather & Footwear 10 years Development (1 year+) 2000-2010 1; 2010-2020 2
Footwear
Industries to 2030, Vision to 2035

Launched March 2022;


Garment, Footwear and Travel Goods Apparel, Textiles,
Cambodia 5 years 5 years; started in No 3
Sector Development Strategy, 2022-27 Footwear, Travel Goods
2016/17

Released (June 2022);


Jordan Economic Modernization Vision, 2022-33 Apparel, Textiles 10 years No
3+ years development

National Textile Policy & Action Plan for


India Fibres, Textiles, Apparel 5 years Drafting (Feb. 2020) 1985; 2000; 2007-12; 2012-17; 2016-24
Textiles & Apparel

Fibres (cotton), Textiles, Textile Vision 2005;


Pakistan Textiles & Apparel Policy, 2020-25 5 years Launched (2022)
Apparel 2009-14; 2014-19

1
Development strategy of Viet Nam’s T&G Industry until 2015, Vision to 2020 (PM Decision No. 36/2008/QD-TTg approved 10 March 2008). 2 Development planning of Viet
Nam’s T&G industry to 2020, with Vision to 2030 (MOIT Decision No. 3218/QD-BCT approved 11 April 2014). Master plan on development of Viet Nam’s leather & footwear in-
dustry to 2020, Vision to 2025 (MOIT Decision No. 6209/QD-BCT approved 25 November 2010). 3 Cambodia developed a strategy in 2005 related to the MFA phase-out, but it
was not implemented. Sources: Previous strategies (Frederick & Staritz, 2012), Viet Nam (MOIT, 2021), Jordan (GoJ, 2022).
41 ILO Working Paper 130

XX Box 8. The four pillars of the ILO Decent Work Agenda

In 1999, the ILO adopted four strategic objectives which guide its actions: fundamental
principles and rights at work, employment creation, social protection and social dialogue.
In addition, gender equality and non-discrimination constitute a cross-cutting theme. As
stated in the Social Justice Declaration 1, these objectives underpin the ILO Decent Work
Agenda to promote decent and productive work for women and men in conditions of free-
dom, equity, security and human dignity.

Fundamental princi- Employment creation Social protection Social dialogue


ples and rights at work

Affirming obligations that Ensuring full and produc- Achieving and maintain- Furthering effective and
are inherent to all mem- tive employment by creat- ing access to adequate inclusive social dialogue
ber States regarding: (i) ing an enabling environ- levels of social protection at all levels between rep-
freedom of association ment for enterprise and guided by international resentatives of govern-
and the effective recog- promoting lifelong skills social security standards. ments, employers and
nition of the right to col- and learning. workers.
lective bargaining; (ii)
elimination of all forms of
forced and compulsory
labour; (iii) effective abo-
lition of child labour; (iv)
elimination of discrimina-
tion in respect of employ-
ment and occupation;
and (v) a safe and healthy
working environment. 2

Gender equality and non-discrimination

Promoting gender equality across each of the four strategic objectives to guarantee equal opportunities for
women and men to obtain decent work, and eliminating discrimination based on gender, race, ethnicity, indige-
nous identity, disability, sexual orientation and gender identity.
1
ILO Declaration on Social Justice for a Fair Globalization (Social Justice Declaration). Available at https://www.ilo.org/re-
source/ilo-declaration-social-justice-fair-globalization. 2 ILO Declaration on Fundamental Principles and Rights at Work.
42 ILO Working Paper 130

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pp. 213. https://unctad.org/webflyer/world-investment-report-2018.

Warwick, Ken. (2013). Beyond Industrial Policy: Emerging Issues and New Trends. Paris: OECD.
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WTO. (2022). “Merchandise exports by product group – annual (Million US dollar).”, WTO STATS
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XX Advancing social justice, promoting decent work
The International Labour Organization is the United Nations agency for the world of work. We bring together governments, employers and workers
to improve the working lives of all people, driving a human-centred approach to the future of work through employment creation, rights at work,
social protection and social dialogue.

Contact details Sectoral Policies Department (SECTOR) I S B N 9789220404379


International Labour Organization

9HSTCMA*eaedhj+
Route des Morillons 4
1211 Geneva 22
Switzerland
T +41 22 799 7501
sector@ilo.org
www.ilo.org/sector
9 789220 404379

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