Bangladesh maintains its second-place status as a garments vendor behind China by closing the gap with its close rival Vietnam in the global apparel export market.
Data from the General Statistics Office of Vietnam and the Export Promotion Bureau (EPB) show that Bangladesh earned US $ 47.38 billion in 2023—US $ 14 billion more than Vietnam earned in the same time.
In 2022, Vietnam made US $ 37.57 billion, whereas Bangladesh earned US $ 45.70 billion, leaving a US $ 8.14 billion difference.
Exporters are encouraged by the growing difference, but industry insiders and analysts cautioned against complacency because Vietnam is now Bangladesh’s main competitor with over half of the labour force. It poses a danger to Bangladesh’s ability to hold onto its second-place ranking in the world market.
Over 4 million people work in Bangladesh’s garment business, compared to over 2.5 million in Vietnam.
In 2021, Vietnam overtook Bangladesh for second place with US $ 27.47 billion in earnings compared to US $ 29.8 billion for the latter.
“If we consider Bangladesh’s gap with China, it is very large. But in the last two years, we have done better than Vietnam. However, it does not guarantee that we will remain second as Vietnam’s apparel export performance was better in the last couple of years,” said Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD).
To sustain the growth and remain the second largest exporter title, we must identify our shortcomings and ways to grow further, added the economist.
Rahman also emphasised the need to be ready for the post-LDC difficulties, which could reduce our export market competitiveness due to the erosion of tax incentives.
