Beyond Vietnam, Bangladesh has the most competitive clothing prices

    According to the "2023 Fashion Industry Benchmarking Study" conducted by the United States Fashion Industry Association (USFIA), Bangladesh remains the most competitive product price among global apparel manufacturing countries, while Vietnam's price competitiveness has declined this year.
    The report noted that Bangladesh's score in social and labor compliance increased from 2 in 2022 to 2.5 in 2023, as stakeholders worked together to strengthen the country's garment industry since the Rana Plaza tragedy. Social responsibility practices. The report highlights the growing social and labor compliance risks posed by sourcing from China, Vietnam and Cambodia, while finding that sourcing from Bangladesh has declined over the past two years. , although concerns in this regard remain.
    However, Asia's status as a major apparel sourcing base for U.S. fashion companies remains unchanged. The report shows that of the top ten most used sourcing destinations this year, seven are Asian countries, led by China (97%), Vietnam (97%), Bangladesh (83%) and India (76%). The survey interviewed 30 executives of well-known American fashion companies between April and June last year.
    This year, Vietnam’s average price competitiveness score dropped from 3.8 to 3.5. The report said that compared with last year, respondents considered Vietnam to be less price competitive as a clothing sourcing base due to inflation and rising wages in the country. This year, China and Vietnam were rated as the most competitive countries in terms of procurement flexibility and agility as the two countries lifted COVID restrictions, significantly reducing supply chain disruptions and facilitating the smooth flow of goods.
    Some supplier countries, including India, Vietnam, Bangladesh, Sri Lanka and Dominican Republic-Central America-U.S. Free Trade Agreement (CAFTA-DR) members, have improved their performance in procurement flexibility and agility. Some respondents expressed concern that products from China and Vietnam may be linked to forced labor in the Xinjiang Uyghur Autonomous Region. "The research report stated: "U.S. fashion companies are deeply concerned about the deterioration of bilateral relations between China and the United States, and plan to accelerate the pace of 'reducing China risk exposure' to reduce risks.
    The report stated that U.S. fashion companies are actively exploring new sourcing capabilities and opportunities outside China, and plan to increase sourcing from Vietnam, Bangladesh and India in the next two years. The study added that fashion companies typically split purchase orders equally between Vietnam, Bangladesh and other countries in Asia.