Bangladesh is now in third position, with China remaining the largest exporter accounting for 31.6 market share despite a 7% decrease in 2020, valuing its exports at US$142 billion, said the report.
Vietnam’s clothing exports increased by 6.4% in 2020 with a market value of US$29 billion. Over the past decade, Vietnam’s share in the global apparel export market surged, while Bangladesh’s export growth dropped from 6.8% to 6.3% in 2020.
Bangladesh output declined during the pandemic, with factories closed as many western brands cancelled orders or delaying payments. Ongoing compliance issues have also forced closures while Vietnam managed to diversify its production making not just low-end, fast fashion garments but also mid and high-end clothing and accessories.
In 2019 Vietnam and the European Union signed a free trade agreement which significantly boosted trading to the world’s largest bloc.
Politically Vietnam is stable, and its citizens have access to better education infrastructure and healthcare, according to the article.