Bangladesh still has scale and cost strength, but Vietnam is proving better positioned in value-added products, trade access and supply-chain speed.
Bangladesh slipped to third place in global apparel exports in 2025, losing the number-two position to Vietnam for the second time in five years. Bangladesh’s garment exports reached $38.82 billion in 2025, according to BGMEA, while Vietnam’s broader textile and garment exports were estimated at $46 billion, with apparel accounting for roughly $38 billion of that total. China remained the dominant global supplier, with clothing and textile-related exports still far ahead of both rivals.
The ranking shift matters because it reflects more than a one-year swing. Bangladesh remains highly competitive in large-volume, basic garments because of its low-cost manufacturing base. But Vietnam has built a stronger model for the next phase of global sourcing: shorter lead times, wider product diversification, stronger foreign investment, and deeper integration into trade agreements and upstream supply chains. Vietnam’s textile and garment industry also ended 2025 with a trade surplus of about $21 billion, underscoring its improving value capture.
Bangladesh’s problem is not capacity alone. The country continues to rely heavily on a narrow apparel basket, while weak backward linkage in man-made fibres, slower logistics, infrastructure bottlenecks and higher financing costs reduce flexibility. BGMEA itself has acknowledged the need for faster logistics, stronger industrial infrastructure, more technology adoption and greater diversification into higher-value products such as man-made fibre garments.
The strategic risk is rising. Bangladesh’s upcoming LDC graduation will gradually erode some trade advantages, while Vietnam is already operating from a stronger FTA and investment position. Unless Bangladesh improves product mix, logistics, technical capability and foreign investment inflows, regaining second place may prove harder than losing it.
