Vietnam, Cambodia, and Myanmar are among a few Asian nations set to gain the most from shifts in apparel manufacturing, according to a report from Fitch Solutions released on July 13.
Along with Bangladesh, the report said, the three countries are able to expand their presence as suppliers to China and increase their market shares in North America and Europe at China’s expense.
From a business environment and operational perspective, Vietnam scores 52.3 in the Fitch Solutions Operational Risk Index. This puts it in the middle of the scale.
Because of that, the apparel manufacturing is seen as a good choice for investors looking for good profits.
According to Fitch Solutions's report, Vietnam apparel manufacturing industry has many advantages, including young labor force and lower wage relative to China Vietnam’s growing participation in free trade agreements like the EU-Vietnam Free Trade Agreement (EVFTA) from August 2020 also positions it well to benefit from this trend.
Besides, the trade wave between China and the US also brought positive impacts to Vietnam. During this period, Vietnam’s apparel exports jumped by 30%.
Apparel export from Vietnam has grown by 15.8% in terms of the compound average growth rate (CAGR) between 2010 and 2019, making it the second largest global apparel exporter after China./.
