Resources
In the summer of 2023, The Centre for Child Rights and Business conducted a study as part of the Work: No Child’s Business initiative, an alliance led by Save the Children Netherlands, UNICEF Netherlands, and the Stop Child Labour Coalition that aims to free children and youth from child labour and ensure their rights to education and decent work.
This study took a closer look at the child rights situation in Ho Chi Minh City’s lower-tier garment facilities – informal sub-suppliers feeding into larger factories that deliver to global brands. These sub-suppliers typically operate under the radar, with fewer than 50 staff and little regard for labour laws or formal compliance. Our research focused on child labour risks, young workers, and working parents in these settings, with 10 sub-suppliers participating in surveys and interviews, followed by focus group discussions with workers.
KEY FINDINGS
First-tier suppliers fuel the informal sector by excluding older workers or those with childcare responsibilities, pushing them into unregulated jobs.
These larger suppliers also borrow informal sector practices, like piece-rate systems, which reduce worker income and stability.
Informal workshops provide jobs for laid-off workers, but pay and employment are even less secure.
While child labour risk is currently low, it’s likely to grow with rising demand. Many children are present in workshops due to limited childcare options for workers.
There are no decent work opportunities for youth across the supply chain, and informal workshops lack the structure for apprenticeships.
Compliance systems of global buyers often miss the mark, unintentionally pushing vulnerable workers down the chain instead of protecting their rights.
The study offers actionable recommendations for companies looking to improve their supply chains, covering responsible purchasing, deeper community engagement, worker support, and rethinking zero-tolerance policies.
To learn how we can help you prevent child labour and strengthen responsible sourcing, contact us to schedule an exploratory call.
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