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Textile and Apparel Industries

What Gives Bangladesh a Competitive Edge Over Vietnam? A Comparative Analysis of the Two Nation’s Readymade Garments Exports

Authors
  • Md Rokibul Hasan orcid logo (University of Missouri)
  • Sanjida Chowdhury Bonney (Bangladesh University of Textiles)
  • Debanjan Das orcid logo (West Virginia University)

Abstract

This study examines the comparative export competitiveness of Bangladesh and Vietnam in the readymade garments (RMG) sector, pivotal to both economies. Utilizing Compound Annual Growth Rate (CAGR), Market Share (MS), Trade Competitiveness (TC), Revealed Comparative Advantage (RCA), and Normalized Revealed Comparative Advantage (NRCA) indices, it evaluates export performance across Harmonized System (HS) Chapters 61 and 62 between 2011 and 2020. Results indicate that Bangladesh, with lower labor costs and a larger market share, maintains a competitive edge, particularly in Chapter 62, despite Vietnam's higher growth rates in specific subcategories. Bangladesh consistently displayed a comparative advantage in most product categories, while Vietnam faced disadvantages in several subcategories. This analysis highlights the export strengths and weaknesses of both nations, offering insights for policymakers, industry stakeholders, and investors to enhance RMG sector strategies. The findings are also relevant to other exporting nations seeking to improve global competitiveness in the apparel industry.

Keywords: Export competitiveness, RMG industry, Bangladesh, Vietnam, NRCA

How to Cite:

Hasan, M., Bonney, S. & Das, D., (2025) “What Gives Bangladesh a Competitive Edge Over Vietnam? A Comparative Analysis of the Two Nation’s Readymade Garments Exports”, International Textile and Apparel Association Annual Conference Proceedings 81(1). doi: https://doi.org/10.31274/itaa.18665

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Published on
2025-01-16

Peer Reviewed