Vietnam could overtake Bangladesh in garment exports

Vietnam is projected to earn $44 billion in garment exports this year, surpassing Bangladesh as the second-largest garment exporter globally. Bangladesh's export target is $40.48 billion for garments, part of a total goal of $50 billion for fiscal year 2024-25. Despite challenges in the first half of 2024, Vietnam's garment sector rebounded in the second half, partly due to political instability in Bangladesh driving orders to Vietnam. Bangladesh faces several issues, including labor unrest and tax problems, making it difficult to boost exports. The Bangladesh Knitwear Manufacturers and Exporters Association acknowledged that Vietnam’s industry is more streamlined and faces fewer barriers. Although Bangladesh's garment exports dropped by 5.22% last fiscal year, the sector remains a significant contributor to the country’s economy.