08 June 2022, Mumbai:

As the rupee plummeted to a new low of 77.47 per dollar on Monday, exporters expected the weakening domestic currency to help a wide range of industries, particularly labor-intensive ones like textiles and apparel, agriculture, footwear, and handicrafts — where margins are typically tight and services industries like IT.

The aim is a $4 billion increase in fabrics by placing India as a regional fabric hub, starting with cotton wovens and extending to other subcategories. “The three-month range of USD/INR is 75.50-77.50 and the six-month range is 74 - 80,” said IFA Global in its latest report.

The general trade belief in the textile sector is that the falling rupee will help enhance India’s competitiveness @ the global marketplace leading to increasing the export of textiles.

The devaluation will also help mitigate the impact of higher transportation costs and supply chain interruptions resulting from the Russia-Ukraine dispute.

However, for the gains to materialize, the rupee must stabilize at a depreciated level in the coming weeks and remain there for an extended time.

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Capital products, which are primarily imported, will also rise in price when the government is focusing more on capital investment to boost economic development. In the first ten months of this fiscal year, India imported machinery worth about $40 billion and transportation equipment worth another $13 billion, including car components. 

These two groups combined accounted for 11% of the country's goods imports.

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The rupee was overvalued by 2.66 percent in March, compared to 4.31 percent in January, according to the RBI's real effective exchange rate (If the devaluation continues, recognized textiles expert DK Nair believes it would benefit exporters, particularly in textiles and apparel, where reliance on imported raw materials is low.

Despite slower growth in outbound shipments, the currency devaluation will help India meet its $400 billion product export objective in FY22. Almost 60% of our products commerce is conducted in dollars.

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The devaluation would assist boost exports, particularly of labor-intensive commodities like sports goods, textiles, and leather, while also protecting local industry, Ajay Sahai, director-general of the Federation of Indian Export Organizations, stated.

According to a textile exporter, currency devaluation would benefit in the near term. Still, growing input costs due to inflation and energy expenses will negate these gains over time.

However, for the gains to materialize, the rupee must stabilize at a depreciated level in the international market. 

However, the genuine concern is that country could lose the currency edge as the peer currencies are also under constant pressure i.e. currencies of its competitors devaluate proportionately.

By economists' estimates In the last 10 months, the rupee's exchange rate with the dollar has fallen 8.7%, from 73.6 to 80, and sectors like textiles as per insiders operate at a wafer-thin ballpark margin of 2-3%, therefore depreciation in the rupee makes a real difference.

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03 June 2022, Mumbai:

Bird's Eyeview

To start with the various textile brands, we can list many companies as the textile industry is highly evolving in India, and there is rapid growth going on in the country; with the International market going down. India has risen as a hub for textile and apparel.

As discretionary spending continues to tick up, both local brands and multinationals operating in India are going all out to woo the consumer, according to a KPMG survey.

These are the following brands that have made a mark in the Indian textile and apparel industry.

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1. Vardhaman Textile Limited - Vardhaman Textiles is one of India's largest textile manufacturer. Vardhman is one of the country's most giant textile corporations, having been in operation for five decades. Vardhman Group, which began modestly in 1965, has grown into a modern-day textile powerhouse under the innovative leadership of its chairman, Mr. S. P. Oswal.

Vardhman Textiles Limited has grown steadily over the years and has a wealth of industry knowledge. The Group, which manufactures Yarn, Fabric, Acrylic Fibre, Garments, Sewing Threads, and Alloy Steel, has grown into a global corporate behemoth with operations in India and 75 countries across the world.

Vardhman is a renowned textile company in India with a strong market position and a long-term business plan. It is ranked second among India's top ten textile enterprises.

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2. Welspun India Ltd - In terms of revenue, Welspun India is one of the largest textile companies in India. Welspun India Ltd., part of the USD 2.7 billion Welspun Group, is a global leader in home textiles, supplying 17 of the top 30 global retailers. The production facilities of the company, which are located in India, are able to offer high-quality goods that meet worldwide requirements.

The data stands to a 6,828 crore rupees in revenue, 22,194 full-time and part-time employees, and 3.310 crore rupees in debt.

Welspun is one of India's most well-known textile brands. Exports currently account for more than 70% of advanced textiles revenue. As a result, it ranks third among India's top ten textile enterprises in terms of revenue.

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Arvind Ltd - Arvind Ltd is one of India's leading textile manufacturers. Arvind's fabric can now be used to round the globe six times. Every second in India, an Arvind-managed brand sells two pieces of clothing. Ahmedabad, Gujarat is the company's headquarters. It is the largest among India's top ten textile enterprises.

Arvind holds 22 worldwide environmental patents and is the country's top fire-resistant fabric maker. He also oversees 15 global garment companies, including Tommy Hilfiger, US Polo, CK, GAP, Nautica, and Sephora. Arvind is one of India's top textile brands. With the statistics standing like a market capitalization of 1,353 crores, and with a dividend yield of 3.93%.

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Trident Ltd - Trident Limited is the flagship firm of Trident Group, a US$ 1 billion Indian conglomerate and worldwide player based in Ludhiana.

Under its founder and Group Chairman Mr. Rajinder Gupta, Trident has grown from its beginnings in 1990 to becoming one of the world's most integrated home textile manufacturers.

The company is in the business of producing a wide range of yarns, bed and bath linens, paper, chemicals, and captive electricity. Barnala and Budni are home to Trident's cutting-edge production facilities (Madhya Pradesh). With a strong market share, the company is one of the major exporters of home textile items.

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Raymond Ltd - Raymond is a diversified firm with a majority of its commercial holdings in the apparel and textile sectors, as well as a presence in national and international markets in categories such as FMCG, Engineering, and Prophylactics.

It is the fourth-largest among India's top ten textile enterprises. Raymond creates 'The best fabric in the world' as a vertically and horizontally integrated textile business.

Raymond and its brands are available in tier IV and V cities, with over 1100 exclusive stores scattered over 380+ locations and an extended network of over 20,000 points-of-sale in India.

Raymond is the No. 1 brand in the OTC industry and a key participant in Shirting textiles. Raymond is the top manufacturer and chosen supplier of high-quality Ring Denim to the world's major Jeanswear companies, making him a strong player in the Denim industry. Through its garment division, the Raymond Group has a strong position in the B2-B market.

Raymond's state-of-the-art and wholly-owned businesses, such as Silver Spark Apparel Ltd, Celebrations Apparel Ltd, and Everblue Apparel Ltd, produce suits, trousers, shirts, and Jeans for top fashion brands throughout the world, and are India's sole manufacturer of full canvas luxury jackets.

1. Page Industries Ltd -

Page Industries Limited, based in Bangalore, India, is the sole licensee of Jockey International Inc. (USA) in India, Sri Lanka, Bangladesh, Nepal, and the United Arab Emirates for the production, distribution, and marketing of the Jockey brand.

Page Industries is also Speedo International Ltd.'s official licensee in India for the production, marketing, and distribution of the Speedo brand. JOCKEY is the company's main brand and the category's market leader in innerwear. On several fronts, Page Industries and Brand Jockey have pioneered the innerwear sector..

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1. K P R Mill Ltd -

KPR Mill Limited is one of India's largest vertically integrated apparel manufacturers, producing yarn, knitted grey and dyed fabric, and ready-to-wear garments. It is ranked sixth among India's top ten textile enterprises. The Yarn division has 3,53,616 spindles and a 90,000 MT annual capacity (capacity doubling is ongoing). KPR produces Combed, Grey Melange, Carded, and Compact yarn for the world's leading brands using the most advanced technology of international standards.

2. Loyal Group -

The Loyal Group is one of India's major textile and garment group, offering a range of textile and clothing products and services. Three composite mills, one spinning mill, one dye house, four garment facilities, one trading firm, and a joint venture company in Italy make up the Loyal Group. It is also one of India's leading garment exporters, having received official recognition.

3. Bombay Ryon Fashions Ltd -

Bombay Rayon Fashions Ltd is a vertically integrated textile and apparel firm that produces a diverse variety of textiles and garments in state-of-the-art manufacturing facilities. Apart from being India's largest shirt maker, Bombay Rayon Fashions Ltd now employs over 38,000 people and produces over 90 million garments each year. With its high employment, it has been a continuous contributor to India's GDP.

4. Mandhana Industries Ltd - Mandhana is a multi-divisional textile and apparel producer with numerous sites in India. With state-of-the-art infrastructure, the firm specialises in bespoke clothes production. Designing, yarn dyeing, weaving, processing, printing, and garment production are all part of Mandhana's business.

In Summary

Conventionally, brands that offer a bespoke level of personalisation, brand philosophy, core DNA & ethos of dedication, and commitment to meet consumer expectations are key parameters ranking high among consumers.

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03 June 2022, Mumbai:

A few decades ago, the textile and retail sectors did not market their products to the general public, which seems surprising for an industry that is fully consumer-focused now.

Exhibitors and shops designed their promotions and marketing without the assistance of specialists sometime later. If not for the fierce rivalry in the garment business, the unplanned advertising and marketing methods would have persisted.

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There are several possibilities for advertising garment manufacturers. The garment designers or producers, on the other hand, research the target market and devise a marketing strategy based on their findings.

When older clients are the target market, shops frequently use the internet or print media to spread the word about the clothing line. Youthful customers favor Internet advertising and electronic media.

The goal of advertising is to develop a specialized market for the clothing brand in addition to increasing revenue. If a company hasn't yet opened a physical location, it's critical to set up virtual stores in one or more online marketplaces.

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Retail clothing marketers are increasingly employing strategies such as geo-targeting, which involves directing mobile advertisements to brick and mortar establishments. It's also simple to track the success of mobile advertisements and web ads.

Marketers quantify ad performance by the number of times customers click on links. Marketers and advertisers investigate what individuals do after clicking the link or visiting the sites to understand buying behavior better.

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Effective advertising is seen as considerably more important than operating a physical store in today's world.

Before the debut, merchants, designers, and manufacturers raise awareness of the product and turn it into a brand so that potential consumers are aware of its presence. In the fashion business, emphasizing a product's originality and superiority has become unavoidable, as new rivals enter the market every day.

Mobile advertising has altered the attention of garment retailers and manufacturers away from traditional marketing channels such as billboards, print ads, and television commercials. Smartphones are increasingly being used to make retail transactions on the fly, and marketers are taking note.

The simple answer is that young or middle-aged customers are always keeping up with the fashion world via smartphones, and online purchasing is also gaining traction. So, whether it's seeking color options or larger sizes, mobile phones can do it all.

The concept of the clothing business has shifted in recent years since a single item now reflects the efforts of many people, from craftsmen to designers to technical staff. The term apparel industry refers to a social phenomenon.

The advertising business aids the garment industry in expanding beyond its established borders, and the journeys of numerous companies demonstrate that the apparel industry cannot function without advertising.

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08 June 2022, Mumbai:

Experts predict that a falling rupee will improve India's competitiveness in the global market, resulting in increased exports of agricultural items, textiles, gems, and jewelry.

The rupee has lost 6% in the first half of this calendar year, trading at 75.51 dollars, down from 71.38 on January 1. In truth, the rupee had fallen to 76.21 on June 16 but has since rebounded thanks to intervention by the Reserve Bank of India.

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According to analysts, the rupee might fall to as low as 80 pence per dollar this year since the Indian economy is expected to decline. India operates on a small 2-3% margin for specific items, such as textiles.

Therefore a 6% devaluation of the rupee makes a significant impact. The USD/INR three-month range is 75.50-77.50, while the six-month content is 74-80, according to IFA Global's latest analysis. This implies that the rupee can fall another 6% in the second part of the calendar year.

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India's agriculture, allied, and processed food exports were $35.1 billion in FY20, down from $38.5 billion the previous year, according to the Agricultural and Processed Food Product Export Development Authority (Apeda). In FY14, India's farm exports reached a new high of $42.8 billion.

Apeda-registered items account for over half of India's agricultural exports. "We profit from rupee devaluation in basmati rice exports. It increases receivables for exported and pending items," said Gurnam Arora, joint managing director of Kohinoor Foods, which produces the Kohinoor brand basmati rice.

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The currency devaluation, according to Ujjwal Lahoti, chairman of Lahoti Overseas, a Mumbai-based producer and exporter of children's clothing, will assist India's competitiveness in the global market and increase textile exports. Another problem may need to be considered in the context of rupee depreciation.

Due to poor market circumstances in the European Union and a slow market in the United States, the previously struggling garment export sector saw shipments fall throughout 2011. Exports, on the other hand, aided its passage. According to Sakthivel, apparel exports surpassed $12 billion in February 2012, up 18.9% over the same month.

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More than 80% of India's clothing is exported to the United States and Europe. Apparel exporters searched for alternate destinations throughout the time, anticipating yet another recession in the EU and weak demand from those countries. “ During the year, Indian exporters visited Latin America, southern and western Africa, Japan, Russia, Israel, and Australia. Apparel exports account for 45 percent of all textile and garment exports.

According to DK Nair of the Confederation of Indian Textile Industry, India's exports in 2011-12 were $30 billion, up from $27 billion in 2010-11. According to the business, the increase is due to the devaluation of the Indian currency during that period.

The rupee declined against the dollar from roughly Rs 45 in April 2011 to more than Rs 50 in March 2012.

The business had a more complex problem in 2012-13 after being caught on the wrong foot for using underage labor and forced labor. Apart from competing with other low-cost manufacturing sites in Southeast Asia, the sector would have to be strict with regulations.

Many strong & progressive groups/units are working hard to promote AEPC's Driving Industry Towards Sustainable Human Capital Advancement (DISHA) initiative. The initiative promises to propel Indian apparel and champions to boost textile and apparel exports.

The US has chastised the most unorganized and fragmented industry for involving children.

The general trade belief is in labour-intensive sectors the falling rupee helps enhance India’s competitiveness @ the global marketplace leading to increasing exports as the textile is certainly one sector where the depreciating rupee is positive.

Albeit there is a greater need to pay the attention to the context against the movement in the currency of the country we are competing with for a realistic understanding. 

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03 June 2022, Mumbai:

For the Indian textile sector, 2021 might be regarded as a year of recovery. When orders began to flow in the fourth quarter of 2020, sectors with significant exposure to international markets (such as home textiles, yarn, fabric, and so on) were among the first to begin the recovery process. Consumption in the domestic market began to build up towards the end of 2020, albeit with a minor lag.

As export demand started to wane in early 2021, owing to new waves of diseases and lockdown restrictions in many nations, the industry's development was maintained by the local market.

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Although an outbreak of diseases in the second quarter of 2021 resulted in regional lockdown restrictions, manufacturing activities were only disrupted briefly since enterprises were better prepared to handle operations.

As a result, the ensuing months saw a faster recovery in demand. Most value chain sectors have now returned to pre-Covid levels, with home textiles and cotton spinning outperforming other segments like apparel.

According to ICRA's examination of publicly traded firms, turnover for home textile and cotton spinning companies increased by roughly 27% and 21% in the first nine months of 2021, respectively, as compared to the same time in 2019.

Fabric and clothing exporters, on the other hand, saw somewhat reduced turnover in the first nine months of 2021, at roughly 1% and 7%, respectively, compared to the first nine months of 2019.

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Amid the Covid epidemic, escalating US-China trade tensions, and significant global customers' China Plus One sourcing policies, Indian textile producers have an excellent chance to get into the global textile industry, which China presently controls.

These changes can already be spotted in the drop in China's share of US textile and apparel import volumes from 47 percent in 2019 to 42 percent in Jan-Oct 2021.

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In volume terms, India's contribution has climbed to 9.6 percent in Jan-Oct 2021 from 9.1 percent in CY2020 and 8.7 percent in CY2019. Initiatives like the Production Linked Incentive plan and the Mega Integrated Textile Region & Apparel Parks could help India solidify its position in the global textiles market.

According to Wazir Advisors, by 2024-25, the Indian textile industry will have attracted over $120 billion in investment and export $300 billion worth of goods.

New projects and the construction of textile parks will grow the textile equipment sector from Rs 220 billion to Rs 450 billion in the next seven years if they are successful.

Increased expectations resulting from retail consolidation might range from establishing minimum standards for supply-chain employees to prohibiting the use of specific chemicals in the dyeing process.

These store demands have a financial and non-financial impact on the supplier chain. The capacity to cut unit pricing, on the other hand, is the true bargaining strength that bullish retailers have and the one that suppliers fear the most.

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29 May 2022, Mumbai:

Indian textile industry introduction

No gainsaying that the Indian textile industry is a critical contributor to the economy in terms of export earnings/FOREX & 2nd most significant employer. Albeit the nation is among the top exporters to the world, increasingly there is the unambiguous realization that the industry continues to be an underperformer to its underlying potential.

In India, textiles have a long history. India, long known as the land of exquisite fabrics, witnessed a fall in exports by 3% and 18.7% in 2020 whilst Other low-cost nations, such as Bangladesh and Vietnam, have gained market share.

Other low-cost nations, such as Bangladesh and Vietnam, have gained market share during the same period.

Indian textile industry history

Several variables have influenced India's recent trade performance. India suffers from several cost disadvantages. Exporters face pricing pressure due to a lack of free or preferential trade agreements with significant importers, such as the EU, UK, and Canada for garments and Bangladesh for textiles.

It's challenging to get the correct return on invested capital because of the high cost of capital and significant reliance on imports for practically all textile machines. India is uncompetitive in the fashion sector due to longer lead times than Chinese manufacturers. In western economies, the practice of nearshoring hasn't improved matters.

Most varieties of cotton yarns, woven cotton textiles, and cotton knit fabric might be imported duty-free from India from January 1 next year, citing the India-Asean free trade agreement.

As a result, India may become a stable supplier of cotton, yarn, and textiles to Vietnam.

How did the Indian textile industry get back its dominance

The Vietnam Cotton and Spinning Association (VCOSANguyen )'s Hong Giang said there was plenty of room for economic collaboration in yarn, cotton, and textiles between the two nations.

"Indian firms excel at producing cotton fabrics and materials. From the standpoint of the Vietnam Cotton and Spinning Association, we welcome Indian investment in the fabric industry.

Importers and buyers from Vietnam interested in sourcing from India may take advantage of a discounted accommodation and travel package by attending the expo in India, he added.

The event, organized by the Indian embassy in HCM City in collaboration with VCOSA, drew nine Indian enterprises and local firms to the 18th Vietnam International Textile and Garment Industry Exhibition in HCM City from November 21 to 24.

Cotton and man-made staple fibers are the most common textile items exported from India to Vietnam.

Indian textile industry in global market

Simultaneously, all yarns and textiles are valued at less than US $ 20 million. It demonstrates that Indian cloth makers are ignoring chances.

And this is despite numerous attempts at all levels, as many corporations have participated in sourcing events held in Ho Chi Minh City from time to time.

Trade between India and Vietnam in textiles through the years has grown significantly, but there is still huge untapped potential. China's vacating space in the global textile trade thus it has opened an opportunity window.

But the million-dollar question is, "Will Indian manufacturers eventually catch the boat".

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03 June 2022, Mumbai:

Manish Malhotra, Sabyasachi, Tahiliani, and many more such brands are among the designers that have worked with Manish Malhotra.

These are a handful of the many designer brands in which Aditya Birla and Reliance Industries, two of India's most powerful economic conglomerates, have invested.

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For the past 24 months or more, the retail and fashion arms of the corporate groups, Reliance Retail Ltd, and Aditya Birla Fashion and Retail Ltd, have been on a shopping spree.

Even though both big players (Aditya Birla and Reliance) are more interested in luxury brands, they have purchased all or the majority of luxury and premium brands in India.

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Even though the pandemic temporarily halted some events, like weddings, the country's clothes and fashion industries have continued to flourish. Indians spend the most significant money on clothing and fashion.

According to Euromonitor International's market research firm, India's apparel and fashion industry was worth INR335,117 million in December 2021.

The sector is predicted to develop at a CAGR of 15% between 2021 and 2026.

Both ABFRL and RRL are vying for a piece of this pie.

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TMRW will, according to the company, build India's most extensive portfolio of disruptor brands in the fashion and lifestyle space, enabling the country's next phase of direct-to-consumer (D2C) growth, which is expected to reach $100 billion by 2025.

"Over the upcoming three years, TMRW will acquire and incubate over 30 innovative, customer-focused brands," says the company.

The venture will also enable multiple founders to operate within a synergistic 'house of brands' platform that shared a common vision and capabilities," the group said. Prashanth Aluru, a former Facebook and Bain executive, has been named CEO and co-founder of the new company.

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03 June 2022, Mumbai:

The first nearly universal factor for success in India is for the different headquarters to acknowledge that India should be judged on its own merits and that there are virtually no surrogates from which to learn anything from elsewhere in the globe.

While most international managers are aware that India is a tough market, just a few are aware of the degree of its complexity. This richness and variation extend beyond demographics, religion, and socioeconomic status to behavioral subtleties, existing and rising goals, and societal mores.

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Over several years, India has become a hotbed for multinational businesses. The interest that global brands have exhibited in India in recent years demonstrates that it is now one of the rapidly growing and most competitive fashion marketplaces.

Armani Exchange, Muji, Innamorata, North Face, Massimo Dutti, Cath Kidston, and a slew of other famous international fashion labels, to mention a few, have made their debut in India this year. On the other side, many companies, including Hermes, Louis Vuitton, Gucci, Chanel, Jimmy Choo, Burberry, Dior, Bvlgari, and others, are swiftly expanding their businesses after establishing a foothold in the past. India is one of the largest marketplaces in the world in terms of sheer population, accounting for around 14.2% worldwide.

It has one of the world's most promising and rapidly rising economies and a large population with tremendous purchasing power.

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As a result of increased globalization and international commerce, the country has become a land of opportunity for various worldwide companies.

Although many international brands have entered the Indian market over the years, not all have been able to crack the success mantra for the mysterious, complex, and diversified market where customers' tastes and preferences change after only a few kilometers and where brands must adapt to local market conditions to attract customers to their brands.

Furthermore, a major stumbling block in India is the sizeable rural-urban divide, which presents enterprises with another hurdle in developing an effective distribution network.

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There has also been a new tendency in the previous couple of years.

Several high-end fashion labels are entering India only over the internet, taking advantage of the lack of laws around the sale of goods through third-party portals and factors such as poor infrastructure and expensive real estate expenses. Under present legislation, global brands do not need a license to sell through internet portals in India if they do not have operations here.

Mobile advertising has altered the attention of garment retailers and manufacturers away from traditional marketing channels such as billboards, print ads, and television commercials. Smartphones are increasingly being used to make retail transactions on the fly, and marketers are taking note.

Thus, with the various episodes happening worldwide, India has grown into a massive source of trading, exports, and imports.

With this opportunity, India can make a lot of growth in the upcoming years. Companies are intensely eyeing the Indian market and are highly urged to get into the Indian market.

There is a huge scope for International companies in India to flourish and grow rapidly.

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28 May 2022, Mumbai:

Vietnam Industry: Challenges & Opportunities

Historically Textiles and apparel (T&C) consistently rank among Vietnam's leading export industries. Due to their diverse skills and advantages, Bangladesh T&A and Vietnam Apparel will profit from most garment sourcing businesses' 'In China plus one approach.

According to WTO data, Vietnam will overtake Bangladesh as the world's second-largest garment exporter in 2020.

According to the BGMEA, the Bangladesh apparel sector recovered its position in the first half of 2021. Compared to Bangladesh, Vietnam garment exports have increased quickly in recent years. "Vietnam has had an FTA with the EU since 2019, which has aided its export growth.

Twist in the tail

Furthermore, China is significantly investing in Vietnam to diversify and increase the value of its exports. Bangladesh, on the other hand, Bangladesh is still competing with its low labor costs," Raihan Mahmud, marketing director of Bangladesh's Tex Garment Zone, mentioned in the news. "If exporters here can diversify their products and our government inks some new free trade agreements," Bangladesh has a greater chance of catching up.

Bangladesh Apparel sector and Vietnam apparel sector will benefit from most garment sourcing companies 'China plus one strategy because of their diversified capabilities and advantages. Vietnam will replace Bangladesh as the world's second-largest garment exporter in 2020, according to WTO data.

Vietnam's lowdown on its foreign trade performance

According to Tran Thanh Hai, deputy general director of the Agency of Foreign Trade, Vietnam's exports and imports grew by double digits in the first quarter of 2022, reaching $176 billion, up 14.4% yearly. During this time, exports increased by 12.9%.

According to several analysts, overall export-import income might surpass $700 billion this year. Bangladesh, according to the BGMEA, regained its position in the first half of 2021. Vietnam's garment exports have expanded rapidly in recent years compared to Bangladesh.

"Vietnam has had an FTA with the EU since 2019, which has boosted its export growth.

The increase, according to Hai, is due to the benefits of new-generation free trade agreements (FTAs) and regional trade agreements.

Below is the list of FTAs that Vietnam has concluded by now.

Vietnam - Japan Economic Partnership Agreement. ...

Vietnam - Chile Free Trade Agreement. ...

Vietnam - Korea Free Trade Agreement. ...

Vietnam - Eurasian Economic Union Free Trade Agreement. ...

ASEAN Agreements. ...

ASEAN - India FTA. ...

ASEAN - Australia - New Zealand FTA.

WTO Study

Following the publishing of a World Trade Organization (WTO) study, the competition between Vietnam and Bangladesh took on a new dimension.

As close competitors in the realm of garment manufacturing and exports, Vietnam surpassed Bangladesh in 2020 to become the second-largest readymade garment/apparel exporter after China's Textiles & Apparel Industry, shipping apparel worth the US $ 29 billion all over the world, even if Bangladesh rallied from behind to surpass Vietnam within a year of the WTO findings.

Garment exports, the lifeblood of Bangladesh's economy, and foreign earnings increased by 30.36 percent to the US $ 35.81 billion in the calendar year 2021, the highest level ever (earnings from apparel exports in 2020 were US $ 27.47 billion).

In 2021, Vietnam Textile Sector had a 9.89 percent increase, but the only US $ 32.75 billion in garment exports, compared to the US $ 35.81 billion in Bangladesh T&C. Vietnam gained $ 29.80 billion from garment exports in 2020.

"It was a temporary change in ranking in the global apparel export market because COVID-19 hit our production hard, negatively impacting exports," said Abdus Salam Murshedy, Managing Director of Envoy Textile, who added that with the outbreak of the pandemic in March 2020, the government-imposed lockdown resulted in factories' production taking a significant hit.

The Billion Dollar Question Is Bangladesh or Vietnam: Who will be the ultimate clothier in the world?

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