Vietnam Poised To Surpass Bangladesh In Garment Exports
Vietnam’s garment exports are projected to reach US$ 44 billion in 2024, marking an 11% year-on-year growth and positioning the country to surpass Bangladesh as the world’s second-largest garment exporter, according to a Vietnamese media report.
In comparison, Bangladesh has set a lower export target of US$ 40.48 billion for garments in FY 2024-25, representing an 11.99% growth. This target includes US$ 21.7 billion from knitwear and US$ 18.78 billion from woven items. Bangladesh’s overall export target for the fiscal year is US$ 50 billion.
Cao Huu Hieu, CEO of Vietnam National Textile and Garment Group (Vinatex), noted the sector’s weak performance in early 2024 due to global economic challenges and reduced orders. However, the sector rebounded in the second half, partly driven by political issues in Bangladesh, which diverted orders to Vietnam. Hieu described this shift as a “fortunate” development amidst persistent challenges.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), acknowledged that Vietnam’s apparel industry faces fewer obstacles, such as labour unrest, gas crises, or tax issues, enabling it to increase exports more efficiently. He emphasized that despite Bangladesh’s lower labour costs, garment exporters face numerous operational hurdles that stifle growth.
Hatem also pointed out the untapped potential for attracting Chinese investment as manufacturers seek to bypass high US tariffs. However, regulatory and infrastructural challenges in Bangladesh deter such investments.
Last fiscal year, Bangladesh earned US$ 36.15 billion from garment exports, a 5.22% decline from the previous fiscal year. Knitwear contributed US$ 19.28 billion, while woven garments accounted for US$ 17 billion.
