Bangladesh and Vietnam are overtaking China in apparel exports to the United States
The dominance of China-made garments in the international market of apparel industry is decreasing day by day. China’s position in international apparel exports has nearly halved over the past ten years. On the other hand, Bangladesh and Vietnam are ahead in the race to capture the market. Especially these two countries are taking over most of the market left by China.
Apparel Resource, a media outlet related to the apparel industry, reported this information by analyzing the data of the last ten years of apparel exports in the United States.
Meanwhile, due to Donald Trump, who is known as a staunch anti-China, taking office as the president, it is believed that China’s garment exports to the US market may decrease further in the coming days. Analysts believe that the possibility of Bangladesh and Vietnam filling that gap has increased.
According to Apparel Resource in their report, China’s apparel exports to the United States are decreasing day by day due to the ongoing tension between Beijing and Washington in the commercial field. As a result, Bangladesh and Vietnam’s clothing exports to the United States are increasing greatly.
According to the United States Office of Textiles and Garments or Otexa, the report says that Bangladesh’s garment exports to the United States have increased by 50.79 percent in the last ten years from 2014 to 2023.
In 2014, Bangladesh’s garment export to the United States was 4.83 billion dollars, in 2022, this export increased to 9.73 billion dollars. However, in 2023, this continuity suddenly collapsed. That year, Bangladesh’s garment exports to the United States decreased by almost a quarter to 7.29 billion dollars. However, overall demand for US clothing products declined during this period.
In 2023, US apparel imports decreased by 22.04 percent, which mainly affected Bangladesh’s apparel exports.
China has been the largest exporter of clothing to the United States for decades. However, this situation has gradually started to change in the last decade. In 2014, China’s garment exports to the United States were 29.79 billion dollars. There, in 2023, this export decreased to 16.32 billion dollars. That is, within a decade, exports have decreased by about 45.24 billion dollars.
Apparel Resource’s report attributed the decline in exports to ongoing trade tensions between Beijing and Washington.
However, Vietnam has surpassed Bangladesh in benefiting from the deterioration of trade relations between China and the United States. In 2014, while Vietnam’s clothing exports to the United States were 9.27 billion dollars, in 2023 this export will increase to 14.18 billion dollars. That is, in the last decade, Vietnam’s exports to the United States have increased by 52.96 percent.
However, not only Vietnam and Bangladesh benefited from the decrease in China’s exports to the United States. Exports of countries like India, Pakistan and Cambodia have also increased. India’s and Pakistan’s apparel exports to the United States have increased by 31.43 percent and 38.14 percent respectively in the last decade.
India’s apparel exports to the US in 2014 were $3.40 billion. In 2023, this export has increased to 4.69 billion dollars.
Meanwhile, in 2014, Pakistan’s garment export to the United States was 1.46 billion dollars, on the other hand, in 2023, this export has increased to 2.02 billion dollars.
On the other hand, Cambodia’s garment exports to the United States have increased by 33.97 percent in the last decade. In 2014, where the country’s exports were 2.48 billion dollars, in 2023 this export increased to 3.32 billion dollars.
Along with China, apparel exports to the United States have declined over the past decade from South Korea, Mexico, Honduras and Indonesia. Among them, South Korea’s exports decreased by 13.31 percent, Mexico by 24.66 percent, Honduras by 6.08 percent, and Indonesia’s exports decreased by 17.99 percent.
According to Apparel Resource’s report, Vietnam and Bangladesh have benefited the most from the geopolitical situation and changing international relations in the last decade in the garment sector.
According to the data provided by Otexa, one thing is clear that the dependence of the United States on China is decreasing day by day in the apparel sector. As a result, Bangladesh and Vietnam are emerging as the top garment exporters of the United States as an alternative to China.
Meanwhile, due to the victory of Donald Trump, who is known as a staunch anti-China, in the recent presidential election of the United States, it is believed that the opportunities for China’s garment exports to the United States market will be narrowed in the coming days. During his election campaign, Trump announced a 60 percent tariff on all Chinese exports to the United States.
If indeed Trump imposes the promised tariffs on Chinese goods as he has promised after taking office in the White House, it is expected that the opportunities for Chinese clothing exports to the United States will decrease further. In this case, countries like Vietnam and Bangladesh can open their heads.
Because according to Otexa data, in the past decade, Vietnam and Bangladesh have been able to create a strong position in the US market alongside China. In this situation, it is believed that the US clothing importing companies can rely more on Bangladesh and Vietnam suppliers instead of buying products from China.
Besides, the existing close diplomatic relations with Washington will also facilitate Dhaka and Hanoi. Because while the diplomatic tension between Beijing and Washington is increasing day by day, the relations between Washington and Dhaka and Hanoi are getting closer day by day.
The United States and Vietnam have joined forces to prevent Beijing’s presence in the South China Sea. On the other hand, taking over the responsibility of Bangladesh after the overthrow of Sheikh Hasina’s government in the mass movement of July and August. The United States also considers the current interim government led by Muhammad Yunus to be close.
