- News in Vietnam
- 27 September 2021
Vietnam becomes the second-largest garment exporter in the world
On August 2, the fashionunited.de website cited the latest statistics on world trade in 2021, announced by the World Trade Organization (WTO), that Vietnam surpassed Bangladesh to become an exporter of goods second-largest garment in the world with a value of $29 billion.
This is the result of the latest assessment of world trade statistics by the World Trade Organization (WTO). With this result, Vietnam is only behind China and surpasses Bangladesh in global apparel sales. Garment products “made in Vietnam” account for 6.4% of the world market share. In 2010, the market share was only 2.9%.
Garment exports of Vietnam and Bangladesh both fell in 2020 due to Covid-19, but Bangladesh’s exports fell faster, to $28 billion. Bangladesh’s share of the global apparel market fell to 6.3% last year. According to WTO ranking, Bangladesh has been the world’s second-largest garment exporter since 2010. Over the past ten years, Vietnam’s share in the global garment export market has increased dramatically.
In 2020, Vietnam’s garment exports grow by 6.4%, with a market price of $29 billion. Meanwhile, the growth rate in Bangladesh’s garment sector fell from 6.8% to 6.3% in the same year.
With this data, Vietnam has surpassed Bangladesh in garment exports, second only to China – a country with a market share of 31.6% (down 7% in 2020), with an export value of 142 billion USD.
Bangladesh’s garment output plummeted amid the Covid-19 pandemic, which forced to close as many Western brands canceled contracts or delayed payments. Meanwhile, Vietnam has sought to diversify, production in fast fashion (cheap trendy) apparel and mid-range and high-end clothing and accessories.
In 2019, Vietnam and the European Union (EU) signed a Free Trade Agreement (EVFTA), and this also helped significantly boost Vietnam’s exports to the European market. Vietnam’s currency against the US dollar has a slight fluctuation in price when the market declines.
The Textile and Apparel Association, Footwear & Handbags, Electronic Enterprises, and Ho Chi Minh City Fine Arts & Woodworking Association have recently actively sourced vaccines from the UAE. These units requested the Government and the Ministry of Health to lead negotiations with suppliers from the UAE or appointed qualified Vietnamese importers to carry out procedures, prioritizing vaccination associations for workers at the factory.