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Vietnam leads the list global top 10 apparel sourcing countries in 2022


Vietnam leads the list global top 10 apparel sourcing countriesJust Style’s list of top 10 apparel sourcing countries to watch out in 2022 contains a mix of a few likely and unlikely suspects. Based on the ranking of GlobalData's Apparel Intelligence Center the list rates countries on the basis of 15 main factors that influence a supply chain executive’s decision to use a country for apparel sourcing in 2022.

The list contains 27 countries, rated for their ability to offer free/freight on board, price, tariff advantage, compliance/sustainability, efficiency, lead time, reliability, ability to make basic products, financial stability, ability to source new materials, political stability, flexibility of order quantity, innovation and ability to develop products with buyers and ability to create value-added products.

Vietnam dominates with 59 points

Vietnam tops the list scoring 59 of the total 75 points. The country emerges a global power in manufacturing and exporting of apparels. Apparel accountsVietnam leads the list global top 10 apparel sourcing countries in 2022 for around19 per cent of total exports while employing about 2.5 million workers in 6,000 factories.

Turkey digitizes supply chain

The second top apparel sourcing destination with a score of 58 is Turkey. The country is a provider of basic apparels for many brands and has launched an initiative to digitize the entire apparel supply chain in 2022.

Attractive FDI destination

The only South American country to make into the top 10 list with a score of 55.5, Peru attracts global brands, in part because of its rich heritage in textile craft and eco-friendliness. The country is expected to remain attractive for foreign investment in 2022.

Efficiency and productivity

With a score of 54, China continues to attract apparel buyers due to its efficiency and productivity through advanced manufacturing technologies. It remained the largest supplier to the US market in October 2021, according to data published by the US Department of Commerce’s Office of Textiles and Apparel (OTEXA).

Moving away from CMT

The fifth spot goes to Central America’s El Salvador for its ability to provide FOB with the country moving away from pure Cut, Make, Trim (CMT) to full package. El Salvador has increased its focus on products using those materials such as the growing athleisure market. It is also importing high-tech equipment for production of both fabrics and cut-and-sewn.

Mexico’s apparel exports to rise by 8 per cent

Sixth place goes to Mexico for its tariff advantage. The country focuses on apparel as an important contributor to its economy, employing about 400,000 workers in 22,000 factories. Apparel exports are expected to rise 8 per cent through 2022.

Moderate-size garment industry dominated by US and EU

Ranked seventh, Egypt has a moderate-sized garment industry with the EU and the US listed as its largest export markets. Textiles and apparel represent about 8 per cent exports, 27 cent of industrial production, and 10 per cent of the country’s working population.

Shorter lead times and product innovation

Placed eight, Guatemala offers many benefits for retailers and brands ranging from quality and efficiency to vertical integration and multiple free trade agreements.

Focus on value-added basic products

Africa-based Morocco sits in ninth place by exploiting niche products and focusing on low value-added basic production. Three quarters of Mexico’s apparel exports are formal and casualwear and the value per weight and volume is among the highest in the world.

Refining value-added products

Southeast Asia’s Thailand takes 10th place with apparel accounting for 30 per cent of the country’s GDP. Thailand is committed to improving its competitive position in apparel by refining its value-added products, introducing more advanced technologies, and providing tax relaxation.