Vietnamese textile industry may benefit from Bangladesh crisis: VITAS

VITAS feels Vietnamese textile enterprises may receive new orders as Bangladesh’s production capacity is expected to decline during the peak season for winter clothing.

Moreover, political unrest and rising labour costs due to demands for higher wages in Bangladesh are undermining its competitive advantage in cheap labour and eroding customer confidence, it notes.

However, industry experts feel a massive order shift from Bangladesh to Vietnam is unlikely, according to Vietnamese media outlet.

The extent of any shift will depend on several factors, including the nature of orders and the preferences of buyers. Bangladesh continues to enjoy significant cost advantages, including low labour costs, favourable interest rates and duty-free access to European Union (EU) markets. Bangladesh also offers energy subsidies to textile-garment exporters.

Despite the potential short-term benefits, Vietnamese enterprises have been advised to focus on enhancing competitiveness and pursuing long-term strategies.

ALCHEMPro News Desk (DS)