October 8, 2018

Bangladesh is becoming a more popular apparel sourcing destination for Western retailers thanks to the ongoing US-China trade war, said a latest survey by the Asia Inspection (AI), a Hong Kong-based global inspection and accreditation body. Geographical diversification of sourcing is underway, driven by the need for cost optimization that predates the current tariff battles, said the latest AI report, which was released on Thursday. Among the respondents of the AI mid-year survey, up to three-quarters of businesses said they were already looking for suppliers in new countries or had plans to do so in 2018 — and some of China’s long-standing competitors are emerging as their top choices. In Southeast Asia, the popularity of Vietnam and Cambodia is confirmed by the double-digit growth in the third quarter of 2018. Meanwhile, a notable portion of companies working in the cost-sensitive textile sector have mentioned of plans to expand their sourcing to other Asian manufacturing hubs such as Bangladesh. “So far, the manufacturing giant China displays resilience amid the trade escalation, and remains confident in its status as a top sourcing destination,” said the report titled “Global Sourcing Trends: Embattled China vs. Regional Competition”.

Source: RMG BD