It is likely that Bangladesh will overtake China as the EU‘s biggest apparel source in the near future, due to China‘s decreasing share of trade due to the economic slowdown caused by the Covid–19 pandemic.
This is due to the shortage of skilled labor in China, as their population is decreasing, and Bangladesh is producing high–end value–added garment items. Data shows that apparel shipments to the EU from Bangladesh have grown by 41.76 percent in the January–October period of last year to USD 19.40 billion.
There are also other factors, such as China‘s withdrawal of foreign investments, an increase in production costs, and the tariff war between the US and China. As a result, work orders have been diverted to Bangladesh, as well as other Asian countries like Vietnam, Thailand, Cambodia, India, and Pakistan.
Bangladesh is also shifting its production base to high–end value–added garment items from basic items, and the country‘s primary textile sector has received investments worth over USD 20 billion. With all these factors considered, it is likely that Bangladesh will overtake China as the EU‘s biggest apparel source in the near future.
