Vietnam Benefited From Buyers Cutting Mainland Purchases?

A new report points out that the rising cost of mainland China has forced more and more western countries.

And retailers consider reducing purchases in mainland China, and moving more clothing to other places.

However, when looking for alternative production bases, Western buyers find their options limited because no single country can provide capacity, quality, skills, diversification and complete supply chain provided by the Chinese textile and garment industry.

In addition, many more attractive alternative sites have different shortcomings.

According to the report, although Bangladesh is one of the lowest cost producers of textiles and clothing in the world, it has blocked some buyers from Bangladesh because of concerns about factory safety and negative reports related to these problems.

Kampuchea is regarded as another potential low cost alternative country outside Bangladesh and Mainland China. However, due to recent labor market turbulence and trustworthiness, many buyers are cautious about purchasing in Kampuchea.

It seems to offer better prospects for Western buyers, because it has a very developed textile supply chain that seems to escape the negative reports that have plagued the industry in Bangladesh and Kampuchea.

In fact, in the next few years, Vietnam will be expected to become western textiles.

One of the fastest growing suppliers.

In 2013, the United States imported 14.6% of its textiles and clothing from Vietnam, representing Vietnam's fastest growing imports among the 10 largest suppliers in the United States.

In the first four months of 2014, imports continued to grow strongly, up 15.5% compared with the same period last year.

In addition, Vietnamese exporters benefited from successful progress in the negotiations on the p Pacific Partnership Agreement (TPP).

This will give Vietnamese products access to the US market with tariff preferences and more flexible regulations.

In 2013, the United States imported 10.5% from Bangladesh, making Bangladesh a fast growing supplier in the US market after Vietnam.

However, due to the collapse of Rana Plaza, a 8 story commercial building near Dhaka in Bangladesh, including 5 garment factories and a shopping center, with the consequent negative reports, many orders delivered to Bengal suppliers in 2013 were re negotiated.

In fact, recent data show that the pfer of orders from Bangladesh is likely to be in progress.

In the first quarter of 2014, imports of Bangladesh fell by 0.2%.

At the same time, in 2013, the United States imported only 0.7% from Kampuchea, while the relative growth of 2.1% in 2014 and 2013 was relatively mild. However, the share of the market in the United States has gradually lost.

Indeed, Kampuchea and Bangladesh performed much better in the EU import market.

In 2013, the European Union imported 37.3% Meng Zeng from Kampuchea and 15% from Bangladesh, prompting Kampuchea and Bangladesh to become the two fastest growing countries in the EU's 10 major textile and apparel suppliers.

On the other hand, the EU's imports from Vietnam only grew by 3.2%.

Between January 2014 and March, Vietnam's imports grew rapidly to 14.5% as buyers moved to locations outside Bangladesh, Kampuchea and Mainland China.

Looking forward to the future, Vietnam seems to be regarded as a solid alternative purchasing place in mainland China.

However, the proportion of EU and US imports from Vietnam is still inferior to that of mainland China.

In fact, no country is comparable to mainland China in terms of supply base size, skill area, quality level, product category and supply chain integrity.