Vietnam surpasses Bangladesh

Vietnam has surpassed Bangladesh in becoming the second-largest exporter of apparel products recently. Vietnam earned $13.18 billion from exporting textiles, as against Bangladesh's $11.92 billion in six months till June. Since garment items account for 84 per cent of our export earnings, this is not a good sign, especiallybecause a competitor country fared better.

However, for sure coronavirus is not the only reason for such export performance. Vietnam has diversified products within the apparel sector, whereas Bangladesh entered the medical clothing sector only recently. Vietnam has better skilled workers and its factories are technologically more advanced. Bangladesh's factories are not so advanced. Vietnam depreciated its currency but Bangladesh did not.

In fact, Bangladesh can no longer enjoy competitive advantage with low-cost labour. Instead, production cost can be reduced and efficiency raised through automation. To regain the second position again and attain more competitiveness, it is high time we made necessary changes in policy and diversified exportables.

ATM Amin

East West University, Dhaka

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