Vietnam Overtakes Bangladesh, Turns 2nd Largest RMG Exporter Globally

In the global apparel market, Vietnam replaced Bangladesh to become the second-largest exporter of ready-made garments (RMGs).

Bangladesh is presently in third place, behind China, which is in first place.

Bangladesh's share of the global garment market fell to 6.3 percent in 2020 from 6.8 percent a year earlier, according to the World Trade Organization's (WTO) World Trade Statistical Review 2021 released on Friday.

In the year 2020, Bangladesh's market worth was $28 billion. Meanwhile, Vietnam's proportion in worldwide RMG exports increased to 6.4 percent in 2020, up from 6.2 percent the previous year.

At the end of 2020, Vietnam's market value was $29 billion.

To put that in perspective, Vietnam's portion of the global export market in 2010 was 2,9%, whereas Bangladesh's share of the global clothing export market was 4.2 percent, or 85.5 percent higher than Vietnam's.

Bangladesh has lost ground to Vietnam in the latest trend of declining garment exports, which has been exacerbated by the pandemic, according to apparel makers and analysts.

Moreover, Bangladesh's RMG exports have declined substantially in recent years as a result of the closure of a number of small RMG factories that failed to meet the strict compliance standards set by international retailers and brands, as well as the offering of lower prices by international buyers.

Furthermore, Vietnam offers a diverse range of items at a low price, which Bangladesh cannot match. “By focusing on product variety, Vietnam has surpassed Bangladesh as the world's second-largest garment supplier,” they added.