Hansae Reduces Sewing Line Staff from 60 to 45

Hansae Vietnam's TG subsidiary has reduced sewing line staffing from a previous 60 workers to 55, and now to roughly 45, through the introduction of automation equipment such as hanger lines and automated guided vehicles (AGVs). This represents a 25% reduction in workforce compared to before.

What Has Changed

Established in 2010, the TG subsidiary is Hansae's flagship production site, spanning approximately 370,000㎡ with an annual production capacity of up to 45 million garments. It currently employs about 4,300 workers producing goods for major U.S. and Japanese apparel brands. At Factory 7, hanger lines that transport fabric along ceiling rails, pattern sewing machines that handle multiple processes in a single unit, and AGVs that carry cut fabric pieces all operate together. The AGVs have evolved from an initial floor-path recognition method to second-generation QR code recognition, and most recently to third-generation units that navigate based on an uploaded factory map. Factories 1 and 7 are also testing the feasibility of deploying map-based autonomous robotic vacuum cleaners on the floor.

Lee Jin-seop, General Manager of Hansae's Vietnam operations, explained, "In the past, a typical sewing line required about 60 workers covering everything from the fabric warehouse to cutting, sewing, and packaging, but we now operate with around 45 after passing through an intermediate stage of 55." He added that this has been achieved "by introducing automated equipment and a multi-process work system to improve labor efficiency." He further emphasized, "In the past, automation was pursued to increase production volume, but now the focus is on automation to replace labor. As labor costs in Vietnam continue to rise, automation is essential to maintaining production competitiveness."

How Does the Integrated Management System Work?

At the core of factory operations is Hansae's proprietary smart factory system, HAMS (Hansae Advanced Management System). It consists of six subsystems: raw material inventory management (WMS), fabric inspection (FIS), cutting process management (SMS), sewing productivity management (SFC), quality control (QCS), and equipment management (MMS). The moment fabric arrives, a barcode is attached and linked to the ERP system to track progress at each stage of the process. For example, if 30 defective items occur during a day's production of 1,000 units, that information is immediately reflected in the system. Barcodes are also attached to equipment to track service life and repair history. At Factory 7, the process from finished product inspection through box packaging to RFID inspection has been unified, reducing labor input and working time. Factory 1, which produces goods for a Japanese brand, operates a separate system with increased inspection frequency and has implemented an incentive program based on individual worker output.

Hansae is also independently developing automation technology for processes like ironing, where differences in fabric thickness, size, and brand-specific requirements have made machine replacement difficult. General Manager Lee noted, "The sewing industry is a field where thin, flexible fabrics make robotic replacement challenging. We are internally reviewing automation possibilities even for processes that external equipment vendors have been unable to solve."

What Does the Expansion of Production Bases in Central America Mean?

Having acquired Vietnamese fabric company Color & Touch (C&T) in 2013 to build a vertically integrated production base in Asia, Hansae now plans to complete a production system in Guatemala spanning yarn, knitting, dyeing, finishing, and sewing. The Guatemala production facility is set to begin operations in Q4 2026, with full-scale production expansion planned from the following year. This is expected to shorten shipping times to the U.S. market by up to a month compared to Asia. Hansae Vice Chairman Kim Ik-hwan stated, "There is no deliberate plan to reduce Vietnam's share of production. Vietnam remains an important production base, and we will pursue overall growth by expanding sales in Indonesia and Central America."

Implications for AX at Korean Companies

What stands out in this case is the shift in the stated purpose of automation. The move toward automation for labor replacement rather than output expansion offers a useful perspective for companies operating production bases where labor costs are rising. However, it should also be noted that TG subsidiary's workforce reduction did not happen overnight but occurred in stages, going from 60 to 55 and then to 45.

Another key point is the integrated management system, like HAMS, that consolidates data across processes. A structure where defect data is reflected in the system immediately and equipment failure history is tracked demonstrates that installing automation equipment individually and integrating its data are two distinct challenges. Organizations with production processes split across multiple stages and data scattered across each stage should first examine how to connect data across processes before investing in equipment automation.

Source: Fabric moves on its own, production volume is tallied in real time... Hansae Vietnam factory ...