China, India, Vietnam key sourcing destinations for US, EU buyers

Western buyers are considering Vietnam and India equally important sourcing destinations, after China, in 2023, according to a latest report.
Some 26 per cent of over 250 businesses, surveyed around the world by QIMA in H1 of 2023, named India and Vietnam that are neck-to-neck in race to win the Western buyers' business.
China remains a key place in global supply chain, as 81 per cent of the surveyed businesses named China despite their sourcing diversification, while the rate is 17 per cent for Bangladesh.
"In the 2023 ranking of key sourcing destinations, India and Vietnam proved equally popular (after China), and were named (among the top three sourcing partners) by 26 per cent of the US- and EU-based brands," read the report.
Viewed by industry, India as a supplier market was the most popular among businesses working in the accessories, jewellery and eyewear sectors (where 45 per cent named the country among their top three), followed by promotional products (44 per cent).
The textile and apparel sector, traditionally viewed as India's "bread and butter", came in third with 40 per cent, according to the report.
QIMA, a leading global quality control and compliance service provider, on July 03 published the report - 'QIMA Sourcing Survey 2023: Disruption, Diversification and Digitisation'.
The report analysed the latest developments in global procurement patterns, as well as long-term trends and patterns of the past five years. Insights included shifting supply chain challenges, evolution of key supplier geographies, supply chain digitization trends, and impact of the ESG legislation on sourcing practices.
About 87 per cent of businesses did not expect supply chain disruptions to get worse by the end of the year. But in product categories, with the reported high reliance on China, the sentiment was more pessimistic.
Some 76 per cent of businesses globally reported changing up their supplier geography in the past 12 months.
The report also said the newly diversified supply chains benefitted from flexibility, but struggled with capacity and quality.
Brands utilised digitization to improve visibility, quality and compliance, as globally 74 per cent of businesses were investing in supply chain digitization. Main drivers to do so included improving supply chain visibility, product traceability, quality control, and supplier compliance.
Local apparel exporters, however, disagreed with the findings, saying India is far behind than Bangladesh in terms of garment industry strength, production capacity, workers' efficiency, and compliance.
When asked, Abdullah Hil Rakib, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said India is not a competitor of Bangladesh. Rather, the country sources 'Made in Bangladesh' garment - either by Indian importers or global retailers.
Talking to the FE, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also echoed the BGMEA leader.
Mr Hoque, however, opined that findings vary based on nature of the surveyed companies or business, saying it is important to consider who are surveyed.
He also said despite a downtrend in global business, Indian business is increasing, and Bangladesh has to be aware of its competitiveness.

Munni_fe@yahoo.com