Over the past two decades, Bangladesh's knitwear sector has evolved into a global powerhouse, significantly contributing to the nation's economy. In the 2021-22 fiscal year, the Ready-Made Garment (RMG) sector generated $42.61 billion, with knitwear accounting for 41.8% of export earnings i-Proclaim.my. Notably, between January and September 2023, Bangladesh surpassed China to become the leading knitwear exporter to the European Union, with exports valued at $9 billion compared to China's $8.96 billion FashionNetworkTextile & Fashion News.

• Competitive Labour Costs: Bangladesh offers one of the lowest wage structures in the global apparel industry, enhancing cost competitiveness.
• Trade Preferences: The European Union's Everything But Arms (EBA) scheme provides duty-free access for Bangladeshi exports, bolstering competitiveness APLF.
• Infrastructure Development: Investments in specialized knitwear parks and factory automation have improved production efficiency.
• Skilled Workforce: A large, skilled labour force adept in knitwear manufacturing techniques supports consistent production quality.
• Global Buyer Confidence: Brands like H&M and Zara continue to source from Bangladesh, underscoring trust in the industry's capabilities.

• Political Instability: Recent political unrest has disrupted operations, leading to factory shutdowns and delayed shipments Financial Times.
• Climate Vulnerability: Annual flooding has disrupted cotton supply chains, affecting production schedules Reuters.
• Tariff Barriers: The U.S. has imposed a 37% tariff on Bangladeshi garments, challenging market access Reuters.
• Innovation Gaps: Limited investment in research and development hampers product diversification and technological advancement.
• Sustainability Concerns: The industry faces pressure to adopt sustainable practices amidst global environmental concerns.

• Cost-effective production.
• Established global buyer relationships.
• Duty-free access to key markets.

• Political and climate-related disruptions.
• Dependence on basic knitwear products.
• Limited technological innovation.

• Expansion into sustainable and value-added products.
• Diversification of export markets.
• Adoption of Industry 4.0 technologies.

• Rising global tariffs.
• Supply chain vulnerabilities.
• Intensifying competition from neighbouring countries.

• Enhance Technological Capabilities: Invest in automation and digitalization to improve efficiency and product quality.
• Diversify Product Portfolio: Develop high-value, sustainable knitwear products to meet evolving consumer demands.
• Strengthen Trade Relations: Negotiate favourable trade agreements to mitigate tariff impacts and expand market access.
• Invest in Workforce Development: Provide training programs to up-skill workers in advanced manufacturing techniques.
• Implement Sustainable Practices: Adopt environmentally friendly production methods to align with global sustainability trends.

Source: ResearchGate

• U.S. Tariff Impact: The imposition of a 37% tariff on Bangladeshi garments has led to significant challenges, with potential order cancellations and job losses. Reuters
• Political Unrest: Protests and political instability have disrupted factory operations, affecting global supply chains. Financial Times
• Climate Challenges: Flooding has disrupted cotton supply chains, leading to production delays and potential loss of market share Reuters.

Bangladesh's knitwear industry has demonstrated remarkable growth, establishing itself as a leading global exporter. However, to sustain this trajectory, the sector must address challenges related to political instability, climate change, and global trade dynamics. By investing in technology, diversifying products, and adopting sustainable practices, Bangladesh can reinforce its position in the competitive global market.

Over the past two decades, Vietnam's knitwear industry has emerged as one of the strongest textile and apparel manufacturing sectors globally, consistently achieving double-digit growth rates in exports. From being a low-cost manufacturing hub, it has gradually evolved into a strategically competitive sourcing destination for global brands.

• HS Code Focus: HS 61 (Knitted or crocheted apparel and clothing accessories)
• Growth Trajectory:
• 2005 Export Value (Knitwear): ~$1.5 billion
• 2023 Export Value (Knitwear): ~$18 billion+
• CAGR: ~12-15% over 20 years
• Key Export Markets: USA, EU, Japan, South Korea, Canada, Australia

• FTAs & Bilateral Trade Agreements:
• EVFTA, CPTPP, RCEP, Vietnam-Korea FTA
• Duty-free access to over 50 countries
• WTO Membership (2007): Boosted investor confidence and exports

• Lower than China, Thailand, Malaysia
• Average monthly wage in garment sector: ~$250-300 vs. China ~$600-700

• Textile Industrial Parks: Binh Duong, Dong Nai, Nam Dinh, Ho Chi Minh, Hai Phong
• Backward Integration: Development of dyeing, spinning, knitting capacities

• Over $6 billion+ in textile-related FDI (2005-2023)
• Significant investments from South Korea, Japan, Taiwan, China
• Port & Logistics Upgrades: Haiphong, Da Nang, Cai Mep-Thi Vai

• Master Plan 2030 & 2045 for textile and garment development
• Tax incentives for green and export-oriented manufacturing

• Quick lead times (15-30 days turnaround)
• High compliance with:
• WRAP, SA8000, BSCI, GRS, Oeko-Tex, and other ESG standards

• Large pool of semi-skilled and trained workers
• Government focus on TVET (Technical and Vocational Education Training)

• 70-80% of raw materials (especially yarn, dyes, chemicals) are imported
• Major imports from China, Taiwan, South Korea

• Majority of exports are OEM (Original Equipment Manufacturing)
• Limited presence in OBM (Own Brand Manufacturing) or global value addition

• Knitwear processing involves high water and chemical usage
• Dyeing and finishing units are major polluters
• Struggles with sustainable wastewater management

• Wage inflation (10-15% annually) due to industrial competition and urbanization
• Threatens cost competitiveness

• Port congestion and logistics inefficiencies in peak seasons
• Inland logistics cost remains high (~20% of product cost)

• Global brands diversifying from China -> Vietnam as the top alternative
• Prefer Vietnam for:
• Trade agreement access
• Compliance readiness
• Political stability

• Vietnam is aligning with:
• EU Green Deal, CBAM
• US sustainability frameworks
• Investment in:
• Solar-powered factories
• Waterless dyeing technology
• Zero liquid discharge systems

• Adoption of Industry 4.0 tools:
• 3D design
• ERP systems
• Smart manufacturing lines

• Rise of:
• Athleisure wear
• Functional knitwear
• Eco-friendly knitted products

• Inflation, interest rates, and consumer sentiment in the US and EU
• Geopolitical disruptions (Russia-Ukraine, Red Sea shipping routes)

• Bangladesh, India, Indonesia, Ethiopia offering cheaper production options
• African nations gaining preferential access to EU/US

• Non-compliance with EU Corporate Sustainability Due Diligence Directive may restrict market access
• Supply chain traceability demands increasing

• FTA Access, Competitive Costs
• Skilled labour, policy stability
• Compliance & ESG-ready factories
• Strategic location, logistics

• Import dependence for raw materials
• Low R&D and brand ownership
• Environmental regulatory gaps
• Rising wages, infrastructure gaps

• China+1 sourcing strategy
• Eco-friendly apparel boom
• Product innovation (athleisure)
• Digital factory transition

• Global economic downturn
• Competition from low-cost countries
• Trade law changes & ESG mandates
• Natural disasters/climate change risks

• 2023 Export Value (HS 6109/6110): ~$6 billion
• Top products: T-shirts, sweatshirts, pullovers, sportswear
• Lead buyers: Nike, Adidas, Target, Uniqlo, Puma, H&M
• Value proposition: Lower costs, faster delivery, and sustainability compliance compared to China or India.

• Invest in vertical integration to reduce import dependence
• Build in-house design and product development capabilities
• Partner with brands for co-development of sustainable products

• Enhance textile raw material R&D
• Support for zero-emission infrastructure upgrades
• Implement cluster-based wastewater treatment zones

• Support long-term sourcing agreements
• Encourage capex co-investment in ESG-compliant infrastructure
• Provide capacity-building support for Tier 2 and Tier 3 suppliers

Vietnam's knitwear industry exemplifies how strategic policy, foreign investment, and competitive workforce can build a globally resilient sector. However, to sustain double-digit growth in the next decade, the industry must transition from cost-based to capability-based competitiveness, with a strong focus on sustainability, innovation, and supply chain resilience.

Over the past two decades, China's knitwear industry has undergone significant transformations, evolving from a low-cost manufacturing hub to a leader in global textile exports. In 2024, China's knitted products exports surpassed the US$100 billion mark, totalling US$109.04 billion, with knitted apparel and accessories accounting for US$85.27 billion and knitted fabrics for US$23.77 billion texleader.com.cn.

• Scale & Efficiency: China's vast manufacturing infrastructure enables economies of scale, leading to cost advantages in production.
• Export Dominance: China leads the global knitted fabrics market, holding a 61% share in the Asia Pacific region, and remains a top exporter of knitted apparel and accessories Textile Focus.
• Technological Advancements: The adoption of automation and digitalization has enhanced production efficiency and product quality.
• Skilled Workforce: A large, skilled labour force supports consistent production quality and innovation.

• Rising Labour Costs: Increasing wages in manufacturing hubs have eroded China's cost advantage in labour-intensive sectors Financial Times.
• Trade Tensions: Geopolitical conflicts and trade disputes, particularly with the U.S., have impacted export growth and market access texleader.com.cn.
• Environmental Concerns: The industry faces pressure to adopt sustainable practices amidst global environmental concerns.
• Aging Workforce: An aging population poses challenges to maintaining a competitive labour force.

• Large-scale production capabilities.
• Dominant position in global exports.
• Advancements in manufacturing technology.

• Increasing labour costs.
• Environmental sustainability challenges.
• Dependence on export markets.

• Expansion into sustainable and value-added products.
• Diversification of export markets.
• Adoption of Industry 4.0 technologies.

• Rising global tariffs.
• Supply chain vulnerabilities.
• Intensifying competition from neighbouring countries.

• Enhance Technological Capabilities: Invest in automation and digitalization to improve efficiency and product quality.
• Diversify Product Portfolio: Develop high-value, sustainable knitwear products to meet evolving consumer demands.
• Strengthen Trade Relations: Negotiate favourable trade agreements to mitigate tariff impacts and expand market access.
• Invest in Workforce Development: Provide training programs to up-skill workers in advanced manufacturing techniques.
• Implement Sustainable Practices: Adopt environmentally friendly production methods to align with global sustainability trends.

• Export Growth: In 2024, China's knitted products exports exceeded US$100 billion, with knitted apparel and accessories exports totalling US$85.27 billion and knitted fabrics exports reaching US$23.77 billion texleader.com.cn.
• Trade Challenges: The industry faces challenges due to geopolitical conflicts and trade disputes, particularly with the U.S., impacting export growth and market access texleader.com.cn.
• Sustainability Initiatives: There is a growing emphasis on sustainable practices within the industry, with brands focusing on natural fibers and eco-friendly production methods Vogue Business.

China's knitwear industry has demonstrated remarkable growth over the past two decades, establishing itself as a leading global exporter. However, to sustain this trajectory, the sector must address challenges related to rising labour costs, environmental sustainability, and global trade dynamics. By investing in technology, diversifying products, and adopting sustainable practices, China can reinforce its position in the competitive global market.