Illustrative image (Photo: VNA)
Vietnam, Cambodia, and Myanmar are among a few Asian nations set to gain the most from shifts in apparel manufacturing, according to a recent report from Fitch Solutions.
Along with Bangladesh, the report said, the three countries are able to expand their presence as suppliers to China and increase their market shares in North America and Europe at China’s expense.
Vietnam’s apparel exports jumped 30 percent last year, raising its global share to 8.7 percent, up from 6.8 percent in 2018.
While Cambodia accounted for only 1.4 percent of the market in 2019, its apparel manufacturing sector has grown at a compound annual growth rate of 13 percent over the last decade, due in large part to relatively low labour costs and favourable investment policies, including allowing full foreign equity ownership in the textiles sector.
Being able to use Vietnamese shipping ports also helps Cambodia with the transport and import of raw materials from China.
Myanmar is also expected to continue seeing strong growth, with numerous seaports facilitating shipping at one of the cheapest rates in the region./.