Bangladesh Vietnam fights for "cheap" clothing orders

In the face of power shortages and various production costs, industry insiders estimate that the labor-intensive toys and garments industry will become the hardest-hit areas. The former expects orders to fall by 5% in the second half of the year. The latter is more likely to fall by nearly 10%. In Bangladesh and Vietnam and other places, due to lower costs in recent years, many of China’s garment orders have been stolen and the operating pressure of the garment industry has doubled. However, the watch industry in Hong Kong performed better. It is expected that there will be an increase of 10%.

Guo Zhenhua, a director of the Federation of Hong Kong Industries, said that due to the fact that the cost of South-East Asian garment factories is 10% lower than that in the Mainland, many Mainland and Hong Kong garment manufacturers have set up factories in Bangladesh and Vietnam in recent years, causing many orders originally made in the Mainland to go to the local market.

However, to avoid textile and apparel buyers from shifting some European orders to countries such as Bangladesh, Pakistan, Laos, and Indonesia, the production capacity and quality of these countries cannot be compared to China's. Besides, some countries still do not have raw materials, such as Bangladesh. Cotton has given China a comparative advantage in overall production conditions.