Bangladesh and Vietnam have been competing for the title of second-largest garment exporter behind China, and are quite far from the biggest of all nations, for the past few years. Although manufacturing quite distinct item classes and having very different working methods, the two manufacturing locales provide for a fascinating comparison.
Bangladesh held the lead until 2019, but the current epidemic has tipped the scales in Vietnam's favor since Bangladesh was heavily struck by the disease's catastrophic impacts, while Vietnam was able to absorb the damage.
Vietnam's apparel exports increased by 6.4 percent to 29 billion dollars in 2020. Vietnam's part of the worldwide clothing export market has increased dramatically over the last decade; just ten years ago, Bangladesh had an 85 percent bigger industry share, which has since reduced from 6.8% to 6.3 percent in 2020.
During the epidemic, Bangladesh's output decreased, with factories closing as major western companies canceled orders or delayed payments. Closures have also been required due to ongoing compliance concerns, while Vietnam has managed to expand its output, producing not only low-end, quick fashion products but also mid-and high-end clothing and accessories. Vietnam and the European Union inked a free trade deal in 2019 that greatly increased trade between the two blocs..
Since the onset of Covid-19, global firms have been lowering their dependency on China. Much of Vietnam's GDP growth has been driven by garment manufacturing and production, providing it with a better supply chain infrastructure than countries like India and Bangladesh. The Vietnamese currency is likewise pegged to the US dollar.
The proximity of Vietnam to China is advantageous for obtaining raw materials and manufacturing machinery. By diversifying their supply chains, some firms relocating out of China will be able to reduce risk and stay near to their customers. Vietnam's political situation is more stable than that of Bangladesh and India, and its citizens have access to stronger educational and healthcare infrastructure.
Vietnam's export statistics include both textile and RMG products, whereas our products are limited to clothing and textiles, which are counted separately. However, the difference in export profits is not significant, and if Bangladesh's textile profits are combined with those from apparel, it will be quite close to Vietnam. Bangladesh's overall fabric and garment export profits were $12.32 billion, down $864 million from Vietnam's $13.18 billion in the previous year.
Analysts are hesitant to make inferences based on the current data, and they also want to examine the worldwide pandemic scenario, which affected industry and business, before making any judgments about the fall.
Conversely, there are explanations for Vietnam's higher export performance during the pandemic, such as the notion that it was the first to respond to the Covid-19 disease and reopen plants. Bangladesh, on the other hand, had industrial interruption as a result of the nationwide lockdown, and export revenues dropped dramatically in April.
Vietnam also has a diverse product portfolio, which enabled it to grab work orders that were transferring from China throughout and following the Covid-19 outbreak. Furthermore, he continued, the Free Trade Agreement with the European Union might be an additional factor contributing to the nation's improved sales record. Oxym Craft uses the most up-to-date trends, top-of-the-line raw materials, to guarantee low costs, high quality, and on-time supply. Unlike other producers, we guarantee quality and adhere to a strict delivery schedule.
Vietnam not only provided full procurement expertise, but it also excelled in producing a diverse range of items at reasonable costs, something Bangladesh was incapable to do. While Bangladesh is known for producing low-cost products, Apparel manufacturers in Vietnam, thanks to better industrial ties, more access to synthetic raw materials, and well-educated labor.
Vietnam's distinct advantages enable it to overcome Bangladesh's inadequacies. “In terms of personnel efficiency, capital profitability, and item diversity, Vietnam is at the top. Bangladesh needs talent development initiatives, a transition in production from bad to good products, quality ads, and shorter supply times.
Whereas female's employees have been the backbone of the womens clothing manufacturers in Vietnam sector for so many years, it's worth noting that most of them have also assumed leadership roles, but have also served as an inspiration and directing power for numerous other women looking to break into the industry.
While Bangladesh has a larger number of exporters, Vietnam is the leader in terms of value addition. Despite its status as the destiny of the garment manufacturers in Bangladesh,clothing manufacturers in Bangladesh, fall behind in the manufacturing of synthetic fiber-made clothing. In the present financial year, the administration has been asked to provide 10% monetary rewards for man-made fiber-based products. The sector anticipates obtaining the necessary permits and duty-free penalties on man-made fibers to reclaim its former position on the worldwide list of textile exporters.
The capacity to generate sophisticated fashions and nimble and adaptable production are two of the Vietnamese garment sector's competitive advantages. Vietnam has a more established network and transportation services, as well as a dependable electricity supply, than Bangladesh, culminating in reduced lead times.
On the negative, Vietnam lacks native raw materials and is reliant on imported textiles. Vietnam's adaptable and responsive manufacturing techniques are ideal for businesses that operate on a just-in-time basis, requiring less stock and a shorter time to market. In contrast to Bangladesh, another significant competitive benefit is Vietnam's garment industry's higher social and environmental conformity.
The clothing manufacturing companies in Vietnam and Bangladeshhave distinct relative benefits that complement instead of conflict with one another. When it comes to garment assembly, the decision between Bangladesh and Vietnam will be based on the company's business model and the product category it wants to produce.
Vietnam may be a preferable choice for fashion-driven enterprises that require superior quality, quick processing, and increased performance in generating more complicated fashions. Bangladesh, on the other hand, maybe a better alternative for high-volume businesses that provide basic clothing and greater quality to their customers. Bangladesh and Vietnam are filling gaps in the garment manufacturing market, but neither has established complete capability to cope with China.