Viet Nam has overtaken Bangladesh as the world’s second largest exporter of ready-made garments, according to the latest figures from the World Trade Statistical Review 2021 released by World Trade Organization (WTO).

Viet Nam’s clothing exports grew 6.4 percent in 2020 with a market value of US$29 billion.

Over the past decade Viet Nam’s share in the global apparel export market surged, just ten years ago Bangladesh still had 85 percent greater dominance, which in 2020 dropped from 6.8 percent to 6.3 percent.

Much of Viet Nam’s GDP growth has been driven by garment production and manufacturing, giving it a comparatively better infrastructure towards supply chains than countries such as India and Bangladesh.

Viet Nam’s currency is also fixed in relation to the U.S. dollar, so there is little price fluctuation when the market falls. In addition, Viet Nam’s proximity to China is beneficial for sourcing raw materials and machinery for production.

Export revenue of the garment and textile sector surged 21.2 percent year on year in the first five months of 2021 to about US$15.2 billion, according to the Viet Nam Textile and Apparel Association (VITAS).

The association reported that fiber and yarn exports during January-May soared by 60.1 percent year-on-year to US$2.1 billion, while that of fabrics also increased 26.4 percent to US$947 million.