Vietnam overtakes Bangladesh, becomes 2nd largest RMG exporter

[Black_cats]

Vietnam overtakes Bangladesh, becomes 2nd largest RMG exporter
Tribune Desk

• Published at 06:25 pm July 31st, 2021

A woman at work in a garment factory in DhakaDhaka Tribune

Bangladesh now stands in the third position, with China holding its first position
Vietnam overtook Bangladesh in the global apparel market and became the second-largest global ready-made garment (RMG) exporter.
Bangladesh now stands in the third position, with China holding its first position.

According to the World Trade Statistical Review 2021 released by World Trade Organization (WTO) on Friday, Bangladesh’s share in the global apparel market dropped to 6.3% in 2020 from 6.8% a year earlier.

The market value for Bangladesh was $28 billion in the year 2020.

Meanwhile, the share of Vietnam in global RMG exports stood at 6.4% in 2020, up from 6.2% a year earlier. The market value stood at $29 billion at the end of 2020.

To put it into perspective, the share of Vietnam in the global export market was 2,9% back in the year 2010 while Bangladesh’s share in the global apparel export market was 4.2%, which was 85.5% more than Vietnam’s.
More to follow…

Vietnam overtakes Bangladesh, becomes 2nd largest RMG exporter

Bangladesh now stands in the third position, with China holding its first position

www.dhakatribune.com

 

[Species]

This was bound to happen.

I said it before, worker productivity of East Asian countries like China, Japan, Korea and Vietnam are way higher than the rest of the world. Low wages and tariff benefits can take us only so far.

To combat this, factory owners will now increasingly move towards automation, leaving millions unemployed.

 

[mmr]

This was bound to happen.

I said it before, worker productivity of East Asian countries like China, Japan, Korea and Vietnam are way higher than the rest of the world. Low wages and tariff benefits can take us only so far.

To combat this, factory owners will now increasingly move towards automation, leaving millions unemployed.

Not really. Its because world moved to man mad finer and bd is struck with cotton. You go to any major Canadian cloth or sports wear...which does make more money its all made in Vietnam or China...you go to Wal-Mart you see made in bangladesh...

but Vietnam can make same money by selling one sports wear then bd make from 10 cotton t shirt. So its not work hard its work smarter.

Bd garments owners keep whinning and asking for govt handout...without trying to compete...its the lazy dumb owners...well the gap will only get bigger with Vietnam.

 

[Species]

Not really. Its because world moved to man mad finer and bd is struck with cotton. You go to any major Canadian cloth or sports wear...which does make more money its all made in Vietnam or China...you go to Wal-Mart you see made in bangladesh...

but Vietnam can make same money by selling one sports wear then bd make from 10 cotton t shirt. So its not work hard its work smarter.

Bd garments owners keep whinning and asking for govt handout...without trying to compete...its the lazy dumb owners...well the gap will only get bigger with Vietnam.

That could be part of the problem but I remember seeing Made in Bangladesh windbreakers with polyester at Macy's. Although I do agree most of the sports wear happen to be from Vietnam or China.

 

[bluesky]

To combat this, factory owners will now increasingly move towards automation, leaving millions unemployed.

Automation means the technical up-gradation of sewing machines whereby less labor is needed to produce a unit volume of goods. This certainly creates better efficiency but many workers become without jobs.

I can accept this situation, however, BD will have to do the automation within the country. In that case, many millions will be employed in automation activities.

However, BD is a country that cannot even manufacture sewing machines, let alone automation. So, being capable to work on automation, China, S. Korea, or Singapore will get this job and their own people will get more highly paid employment opportunities.

And in the process, our people will become jobless.

 

[SpaceMan18]

Automation means the technical up-gradation of sewing machines whereby less labor is needed to produce a unit volume of goods. This certainly creates better efficiency but many workers become without jobs.

I can accept this situation, however, BD will have to do the automation within the country. In that case, many millions will be employed in automation activities.

However, BD is a country that cannot even manufacture sewing machines, let alone automation. So, being capable to work on automation, China, S. Korea, or Singapore will get this job and their own people will get more highly paid employment opportunities.

And in the process, our people will become jobless.

We're screwed no matter what we say , thanks to our incompetent leaders. BD needs to hurry tf up before it's too late to even become a mid tier developed nation.

 

[mb444]

We're screwed no matter what we say , thanks to our incompetent leaders. BD needs to hurry tf up before it's too late to even become a mid tier developed nation.

BD RMG sector has come a long way, we have developed backward and forward linkages and have world class economies of scale. BD production houses now have in house design studios that are linked to european and US design studios.

Automation will come. We also have until 2030 to prepare FTAs with our consumer countries.

I do not see the future as doom and gloom at all. There are massive opportunies. We will face issues but BD will adapt, our economic engine will support adaptation and will break new ground. I am optimistic.

 

[chinasun]

Vietnam has the Mekong River, which can pass more than 5000 tons of cargo ships in four seasons, and there are huge lakes upstream. It can absorb water and alleviate floods in the rainy season, and water transport can greatly reduce transport costs. Bangladesh also has rivers, but there are no big lakes upstream, which are greatly affected by floods.

The picture shows a cargo ship on the Mekong River in Vietnam.

The cost of transportation in Vietnam is lower.As a result, Vietnam attracts a large amount of investment, produces products at low prices and has a competitive advantage.

 

[SpaceMan18]

BD RMG sector has come a long way, we have developed backward and forward linkages and have world class economies of scale. BD production houses now have in house design studios that are linked to european and US design studios.

Automation will come. We also have until 2030 to prepare FTAs with our consumer countries.

I do not see the future as doom and gloom at all. There are massive opportunies. We will face issues but BD will adapt, our economic engine will support adaptation and will break new ground. I am optimistic.

Hopefully man , BD is pretty good at adapting so I guess lol

 

[bluesky]

We're screwed no matter what we say , thanks to our incompetent leaders. BD needs to hurry tf up before it's too late to even become a mid tier developed nation.

I do not think Bd has any more time. Its future economic activities have already been decided by the economic policies BD has adopted during the last two decades when BD garments production and exports expanded.

A non-stupid country would use all its export-earned dollars to import factories and machines to gear up the economy with industrial production. Vietnam has been doing it and BD just cannot think of sectors other than garments.

So, BD's future has already been decided. It will remain an underdeveloped country for the remaining period of its history. Laos, Cambodia, and many African countries are advancing in the garments sector. So, BD will lose much of its market because the buyers will certainly seek cheaper places to produce their goods.

 

[TOTUU]

Bangladesh's manufacturing value added is still ahead of Vietnam's overall, but Vietnam's population is much smaller

 

[bluesky]

Bangladesh's manufacturing value added is still ahead of Vietnam's overall, but Vietnam's population is much smaller

I hope you will understand the meaning of what I wrote before. Please see the bold part below. BD does not have to care for Vietnam. But, it must have its manufacturing industries based on metals, chemicals, and plastics for the next phases of economic progress.

Garments industries belong to 6th world countries and metal-based manufacturing to 2nd world countries.

"A non-stupid country would use all its export-earned dollars to import factories and machines to gear up the economy with industrial production. Vietnam has been doing it and BD just cannot think of sectors other than garments".

 

[Paul2]

I hope you will understand the meaning of what I wrote before. Please see the bold part. BD does not have to care for Vietnam. But, it must have its manufacturing industries based on metals, chemicals, and plastics for the next phases of economic progress.

Garments industries belong to 6th world countries and metal-based manufacturing to 2nd world countries.

"A non-stupid country would use all its export-earned dollars to import factories and machines to gear up the economy with industrial production. Vietnam has been doing it and BD just cannot think of sectors other than garments".

While the later part I agree, I don't agree that garments can't keep pulling forward.

China is still no 1 in RMG despite CNY 10000+ salaries for experienced seamstresses. Key? Super fancy sewing machines, own textile mills, highly efficient labour organisation, upping in the value chain through QC, premium quality, materials, etc.

There are 100 bucks clothes sold in the West, all most likely made somewhere in Asia for less than 1 dollar each. The profitability is better than running drugs if somebody can own the supply chain from start to finish.

Bangladeshi factories need to gang up, and buy some major Western clothing brand.

 

[bluesky]

While the later part I agree, I don't agree that garments can't keep pulling forward.

China is still no 1 in RMG despite CNY 10000+ salaries for experienced seamstresses. Key? Super fancy sewing machines, own textile mills, highly efficient labour organisation, upping in the value chain through QC, premium quality, materials, etc.

There are 100 bucks clothes sold in the West, all most likely made somewhere in Asia for less than 1 dollar each. The profitability is better than running drugs if somebody can own the supply chain from start to finish.

Bangladeshi factories need to gang up, and buy some major Western clothing brand.

Considering BD's inability to manufacture even the sewing machines it will remain unable to go much beyond what it has already achieved in garments sector.

Technologies to produce thousands of types of processing/ non-processing machines continuously create new wealth and BD lacks the initiative to build them.

 

[SpaceMan18]

Considering BD's inability to manufacture even the sewing machines it will remain unable to go much beyond what it has already achieved in garments sector.

Technologies to produce thousands of types of processing/ non-processing machines continuously create new wealth and BD lacks the initiative to build them.

BD can build them , it’s just that BD doesn’t actually give a dam about actual development.