From January to May 2025, Vietnam surpassed Bangladesh in apparel exports to the United States in all respects. Vietnam is ahead of Bangladesh in all aspects - export volume, unit value and market value, which is being seen as a big warning for Bangladesh. In these five months, Bangladesh exported apparel worth $3.53 billion to the United States, while Vietnam's exports were almost double, estimated at $6.94 billion.

Looking at the data for these five months, it can be seen that during this period, although Bangladesh (21.60 percent) was slightly ahead of Vietnam (16.33 percent) in terms of growth rate, Vietnam is far above Bangladesh in terms of total market value.

Bangladesh ahead of Vietnam in terms of apparel volume: While Bangladesh showed a growth of 21.03 percent, Vietnam showed a growth of 12.43 percent. However, many countries, including Pakistan, Cambodia and China, have faced a decline in unit value. According to experts, this price stagnation sends a message of risk to producing countries in the face of high costs, rising wages and rising raw material prices.

In the early 2010s, Bangladesh established itself as the largest garment exporter in South Asia. Taking advantage of cheap labor, large production capacity and tariff benefits from Europe and America, the country quickly became the second largest garment exporter after China. However, since 2019-20, Vietnam has gradually started to move forward, especially in the US market.

In 2020, Vietnam's garment exports to the US surpassed Bangladesh's for the first time. That year, Vietnam exported $12.7 billion to the US, while Bangladesh's garment exports were $7.9 billion. There were several reasons for Vietnam's advancement compared to Bangladesh's garments. Notable among these are the benefits of the US Free Trade Agreement (FTA) with Vietnam, speed and stability in supply chain management, and the supply of sustainable and brand-based products. Although Bangladesh's competitor country has moved forward in these areas, Bangladesh is still lagging behind.

Bangladesh is ahead of Vietnam in terms of export volume and units. But Bangladesh's per-unit garment price has remained largely unchanged, increasing by only 0.47 percent, effectively failing to keep pace with inflation. On the other hand, Vietnam alone has been able to increase unit prices by 3.47 percent, indicating the high quality of their products, brand-dependence and buyer confidence.

Analysts say Bangladesh's export growth is largely volume-driven, with unit prices not improving. This puts profitability at risk. On the other hand, Vietnam is earning more by exporting fewer units, which is evidence of buyer confidence in its high-value products.

Mohiuddin Rubel, former director of BGMEA, said these analyses shed light on the dynamic landscape of garment imports and highlight the growing trends in the industry. It appears that while Bangladesh, India, Cambodia, Vietnam and Pakistan have seen good growth in terms of value and output, in terms of per unit value, almost all countries except Vietnam are struggling.

On July 8, the US imposed a revised 35 percent tariff on Bangladeshi goods. In early April, the US imposed a 37 percent tariff, up from 15 percent. Bangladesh exports about $8 billion worth of goods to the US, the highest amount of any single country. Of this, more than $6 billion is clothing, meaning the industry will be hit hard. Vietnam is Bangladesh’s main competitor, but the US has offered the country a 20 percent reduced tariff rate.

Finance Advisor Salehuddin Ahmed recently noted that Bangladesh’s trade deficit with the US is only $5 billion, while Vietnam’s trade deficit with the US is $125 billion. However, the US has agreed to give Vietnam some concessions. Noting that Bangladesh's deficit is "very low," he added, "There is no justification for imposing such high tariffs on us. We will continue discussions."