Bangladesh’s garment export sector is under pressure as Vietnam is poised to surpass it in global apparel exports. A recent report from Vietnamese media predicts that Vietnam will achieve US $ 44 billion in garment exports this year, outpacing Bangladesh’s target of US $ 40.48 billion.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has voiced concerns regarding Vietnam’s competitive edge, highlighting that the East Asian nation has managed to navigate the global market with fewer obstacles. Mohammad Hatem, president of BKMEA, pointed out that Vietnam’s apparel industry is not hindered by the labor unrest, gas shortages, or taxation issues that plague Bangladesh’s sector.
While Bangladesh aims for a total export goal of US $ 50 billion for the fiscal year 2024-25, with knitwear and woven items targets set at US $ 21.7 billion and US $ 18.78 billion respectively, the country faces significant challenges. In the previous fiscal year, Bangladesh recorded US $ 36.15 billion in garment exports, a decline of 5.22 percent from the year before. Hatem expressed that despite the lower labor costs in Bangladesh, exporters are encountering numerous hurdles that inhibit production increases.
The political instability in Bangladesh has also been cited as a factor driving orders to Vietnam, which Hatem described as an unexpected “fortune” for the Vietnamese sector amid global economic challenges. He acknowledged that while there is potential for attracting new investments from China—especially as US tariffs on Chinese goods rise—numerous barriers remain that hinder such investments from flowing into Bangladesh.
In response to Vietnam’s claims of surpassing Bangladesh in garment exports, local industry leaders refuted the assertion, arguing that Vietnam’s statistics combine apparel and textile exports, while Bangladesh categorises these sectors separately. They emphasised that the data from the Vietnam National Textile and Garment Group (Vinatex), a private entity, should not be considered official.
As the global landscape for garment exports evolves, Bangladesh’s textile and apparel industry faces urgent calls for reforms and strategic initiatives to overcome existing challenges and enhance its competitive position in the market.
