The World Trade Organisation’s index ranks Vietnam first in export growth among emerging economies. Vietnam has 14.6 per cent growth while Bangladesh is in second place with 9.8 per cent growth. The figure is 5.7 per cent for China and 5.3 per cent for India. Mexico has a 4.5 per cent export growth, UAE 3.7 per cent, Turkey 2.4 per cent, Brazil 1.9 per cent and South Africa 1.5 per cent.

Vietnam has moved faster in producing goods which are being relocated from China and has the advantages of a shorter lead to Bangladesh’s exports of apparel and clothing. Readymade garments are still the main driving factor for Bangladesh’s export growth with its increased stake in the global market. Due to the ongoing tariff war, a significant volume of trade has relocated from China to other countries but Bangladesh has been unable to capture a significant portion of it despite being an attractive sourcing destination. One reason could be poor delivery capacity. Another is the appreciation of the currency against the dollar, which has eaten up Bangladesh apparel makers’ competitive edge in global markets.

The value of Vietnam’s yarn exports to China has decreased by 2.5 per cent. The reason is the depreciation of the Chinese currency against the dollar. Vietnam imports cotton from the US to make yarn products for export to China. If the yuan continues to fall, Vietnam’s yarn producers will continue to face difficulties.