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Trade war

Trade war buoys apparel industry in Bangladesh and Vietnam

Production shift likely to pick up as buyers look beyond China

Workers at a garment factory in Bac Giang province, near Hanoi. Vietnam's apparel industry is benefiting from buyers looking increasingly beyond China.   © Reuters

HANOI/MUMBAI -- The trade spat between Washington and Beijing is providing a tailwind for garment production hubs like Bangladesh and Vietnam, as more companies move away from China to avoid U.S. tariffs and sanctions.

China is the world's largest exporter of apparel, with shipments of $158.4 billion last year, or more than 30% of the global total. But that is down from around 40% at the beginning of the decade, with apparel companies gradually migrating to neighboring countries with cheaper labor costs.

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