The chapter reviews the labour retention patterns, the effects on the performance of the apparel and textile sector, and government policies used to attract investors to invest in the industry. It also examined the motives and drivers of the foreign firms that invested in the apparel hub, and essential insights were drawn from this chapter. It reviews the dynamics of and variation within the retention patterns, the motivation and capability of firms, government policies that attracted firms and the mechanisms to manage investors. The evidence shows that labour retention is a significant challenge in Ethiopia’s newly established industrial parks. Despite abundant labour and employment seekers, labour retention became a critical challenge in all industrial parks. The government and firms planned massive employment and recruitment at the largest scale and with the greatest political ambition ever in Ethiopia’s industrial development. While significant accomplishments have been achieved—in terms of policy learning and employment generation—the chapter shows that this enormous initiative was designed and marketed based on unrealistic assumptions, a relatively inadequate understanding of the regional economy, and an over-optimistic idea of national cohesion that underestimated the effects of ethnic tensions and conflicts. In addition, it also examines major broader issues such as COVID-19, which shows that industrial parks were resilient to cope with the pandemic’s impact on production disruption, and the dialogue among the government, firms and labour unions prevented layoffs and factory closures. The government initiated the local production of facemasks, which enabled factories to use their production capacity as buyers scaled down their orders, generating incomes for firms. It also contributed to Ethiopia’s response to the COVID-19 pandemic and reduced vulnerability. The newly introduced new factory and workforce standards during the COVID-19 pandemic positively contributed to workforce development.