The ongoing trade war between USA and China seems to be benefitting two apparel manufacturing powerhouses from Asia, namely Bangladesh and Vietnam!
As per a recent CNN report, Bangladesh and Vietnam, along with countries like Taiwan and South Korea are gaining from this ongoing trade war as Americans are reportedly buying less from China. Besides, rather than depending on US producers, they’re reportedly trying to avoid the tariffs imposed by the Trump administration by turning to suppliers in other Asian countries.
As per the report, during the first 5 months of the year, the United States imported 12 per cent lesser goods from China as compared to the same time period a year ago. On the other hand, imports from Vietnam are up 36 per cent while that from Bangladesh has increased by 14 per cent.
However, it is yet not clear whether the companies are permanently shifting production outside of China, or simply rerouting goods for minimal processing before being shipped to the United States, underlined the report.
As per a recent Reuters report, Vietnam’s customs agency has reportedly started cracking down on goods of Chinese origin illegally relabelled “Made in Vietnam” by businesses attempting to avoid the US tariffs.