MyFLA Sign In
Contact Us
REPORTS

Learnings from Living Wage Studies in Vietnam & Bangladesh 

Since 2011, the Fair Labor Association (FLA) and its members have worked to turn their fair compensation commitments into higher wages for workers in global supply chains. Between 2022 and 2025, FLA conducted two studies—one in Vietnam, and one in Bangladesh—to pilot strategies to raise workers’ wages. Buyers participating in the project received customized recommendations and began developing individual action plans to improve their practices. 

For the projects, FLA partnered with other multi-stakeholder initiatives (MSIs), including the Ethical Trading Initiative; civil society and consultants, including the Research Center for Employment Relations (ERC), Global Worker Dialogue, and InSync Global; 15 global apparel buyers; four manufacturers in Bangladesh; and two manufacturers in Vietnam. 

The first phase of the project, in Vietnam, was a pilot initiative to explore opportunities for multi-buyer factories and global brands to collaborate to advance living wages. The second phase, in Bangladesh, was a case study to examine the impact of a recent minimum-wage increase, building on insights from the Vietnam phase of the project. Both phases included worker and management interviews, reviews of buyers’ and suppliers’ policies and practices, and workshops to share lessons learned. 

Findings and recommendations 

The research team found that wages rose in Vietnam due to some buyer practices and commitments and project interventions, and in Bangladesh due to government mandates – however, the gap between average wages and living wages was larger in Bangladesh. As of 2025, most workers in both countries still earned below living wages.

The team identified recommendations for all buyers working toward living wage goals, such as: 

  • Committing to responsible purchasing practices; 
  • Advocating with governments for labor reforms and minimum wages that are also living wages; 
  • Supporting worker engagement, social dialogue, and collective bargaining; 
  • Ensuring that living wage commitments are shared across internal teams; 
  • Accounting for living wage costs in pricing negotiations; and 
  • Working with multi-stakeholder initiatives and local civil society organizations on wage progress.