Vietnam is likely to emerge in a decade as a strong contender of Bangladesh in the global apparel export market. This will happen once the Trans Pacific Partnership (TPP) takes shape. TPP is a proposed US-led free trade pact that will cover Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam and will collectively account for 40 per cent of the world GDP.

The agreement is likely to benefit Vietnam’s apparel industry, while affecting South Asian competitors like Bangladesh and Sri Lanka. Vietnam will probably overtake Bangladesh in global apparel export market share by 2024, raising its share to 11 per cent from four per cent currently. Bangladesh’s market share would increase only marginally, to seven per cent from the current five per cent, while Sri Lanka’s would decline from the current one per cent.

Vietnam’s textile and garment sector has seen fast and sustainable growth over the past few years. The export value of textile and garment products in recent years has been ranking number two in the country’s total export revenue earning a major source of foreign exchange and contributing significantly to Vietnam’s gross national product and budget.