Viet Nam has set an ambitious target to achieve garment export revenue of $44 billion in 2024. This projection reflects significant growth of 11% compared to the previous year and positions the country to potentially surpass Bangladesh as the world's second-largest garment exporter, according to Viet Namese media.
Bangladesh, on the other hand, has set its garment export target at $40.48 billion for the 2024-2025 fiscal year, with $21.7 billion from knitwear products and $18.78 billion from woven goods. This target represents an 11.99% growth compared to the previous year and accounts for a significant portion of the country’s overall export goal of $50 billion.
Viet Nam Sets Ambitious Garment Export Target
Cao Huu Hieu, CEO of Vinatex, announced Viet Nam's $44 billion garment export target for 2024, despite a sluggish first half of the year due to weak global economic conditions. Recovery in the second half was driven not by increased demand but by political issues in Bangladesh, which shifted orders to Viet Nam—a circumstance he referred to as "fortunate."
Meanwhile, Mohammad Hatem, President of BKMEA, acknowledged that Viet Nam is likely to surpass Bangladesh due to its industry’s stability, free from labor unrest, gas crises, and tax issues.
Bangladesh Faces Export Hurdles
Hatem also highlighted that Bangladesh faces numerous challenges that hinder its export growth, despite lower labor costs compared to Viet Nam. Obstacles across various sectors make it difficult to scale up production.
He pointed out the potential for new investments from China, spurred by high tariffs on Chinese goods, but noted significant barriers preventing these investments from materializing.
In the last fiscal year, Bangladesh earned $36.15 billion from garment exports, a 5.22% decline from the previous year. Of this total, $19.28 billion came from knitwear, and approximately $17 billion from woven goods.
