China, Bangladesh, Vietnam and EU: Global Apparel Export Leaders

Walk into any high-street store in Delhi or Mumbai and check the label on a t-shirt. Odds are it says “Made in Bangladesh,” “Made in Vietnam,” or “Made in China.” These three countries, along with the European Union as a trading bloc, control most of the world’s apparel exports. Understanding why they dominate, and how the balance between them keeps shifting, is essential for anyone studying global retail and sourcing strategy.

China: still the apparel giant, but the crown is slipping 🔗

For decades, China was the undisputed leader in apparel exports. Its position rested on a simple combination: enormous manufacturing scale, low labour costs, strong infrastructure, and short lead times that let brands turn around orders quickly. Government policies supporting export-oriented manufacturing added further momentum, turning entire regions into garment production clusters.

That dominance is now being tested. According to data tracked by the FASH455 trade research project at the University of Delaware, China’s share of world clothing exports fell to 29.6 percent in 2024, the lowest level since 2010, even as its share of textile exports (yarns and fabrics) climbed to 43.3 percent. In other words, China is exporting fewer finished garments but more of the raw textile material that other countries turn into clothing, a sign of a maturing, higher-value role in the supply chain rather than outright decline.

The shift became especially visible in 2024. According to FashionUnited’s analysis of global trade data, the European Union edged past China as the world’s leading apparel exporter that year, with EU member states shipping $166 billion worth of clothing against China’s $165 billion. Bangladesh and Vietnam followed at a considerable distance, with $38 billion and $34 billion respectively. Analysts attributed China’s loss of its long-held top spot to the growing fragmentation of the global sourcing map, driven by rising production costs, pandemic-era disruptions, and ongoing trade tensions with the United States.

Why buyers are looking elsewhere 🔗

Rising wages, a shrinking factory workforce, and stricter environmental regulations have all pushed up the cost of producing in China. Many Chinese factories now face compliance requirements that smaller, lower-cost producers elsewhere do not. This has encouraged global apparel brands to diversify sourcing toward countries like Vietnam, Bangladesh, Cambodia, Myanmar, and increasingly India, spreading risk across multiple manufacturing bases instead of relying on a single country.

Bangladesh: the ready-made garment powerhouse 🔗

Bangladesh has built one of the most concentrated apparel economies in the world. Its ready-made garment (RMG) sector isn’t just an export category, it is the backbone of the national economy. According to Bangladesh’s state news agency BSS, citing Export Promotion Bureau data, RMG exports grew 8.84 percent in fiscal year 2024-25 to reach $39.35 billion, with the European Union alone accounting for just over half of that total at $19.71 billion, followed by the United States at $7.54 billion.

RMG’s outsized role in the economy 🔗

RMG consistently makes up more than four-fifths of Bangladesh’s total merchandise export earnings, a concentration few other economies match. This dependence is both a strength and a vulnerability: strong RMG performance lifts the entire export basket, but any slowdown in demand from the EU or US ripples directly through the national economy. Woven garments and knitwear form the two broad product categories, with knitwear typically holding a slight edge in export value.

Going green to stay competitive 🔗

One area where Bangladesh has genuinely outpaced its rivals is sustainable manufacturing. According to a report by the Dhaka Tribune, the country now has 290 LEED-certified green garment factories, more than any other nation, and 53 of the world’s top 100 highest-scoring LEED-certified factories are located in Bangladesh. For a country competing largely on price, this green manufacturing credential has become an unexpected differentiator. Global brands facing pressure to clean up their supply chains increasingly favour Bangladeshi factories that can prove lower energy and water consumption, giving the country an edge that goes beyond cost alone.

Vietnam: apparel’s fastest-growing export hub 🔗

Vietnam has carved out a strong position as the world’s third-largest apparel exporter, and its growth trajectory has been steady. A report from the United States Department of Agriculture’s Foreign Agricultural Service notes that Vietnam’s textile and apparel exports grew 11 percent in 2024 to reach $42 billion, driven by higher demand from the United States, Japan, and the European Union. This momentum has carried into subsequent years as manufacturers continue expanding capacity.

Free trade agreements fueling growth 🔗

Much of Vietnam’s competitive advantage comes from its extensive network of trade agreements. According to InCorp Vietnam’s industry analysis, the country has signed more than 16 trade agreements, including the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, giving it duty-free or quota-free access to the EU, UK, and Asia-Pacific markets, and positioning Vietnam to compete on speed and compliance rather than purely on low cost. This matters because as wages rise in Vietnam, it can no longer rely on being the cheapest option, so trade access and reliability have become its core selling points.

Where the growth is headed next 🔗

According to Vietnam Briefing, the sector is targeting export turnover of $64.5 billion by 2030, growing at an average annual rate of 6.5 to 7 percent, while also building up domestic value addition to reduce reliance on imported raw materials. The country’s major export destinations remain the United States, EU, Japan, and South Korea, though Vietnam has also started shipping more finished garments into China itself, a notable reversal given China’s traditional role as a supplier rather than an importer of clothing.

The European Union: the world’s biggest buyer and a top seller 🔗

The EU occupies a unique dual role in global apparel trade. It is simultaneously the largest importer of clothing in the world and, as covered above, now runs neck-and-neck with China for the top exporter spot. According to CBI, the Netherlands’ government-backed trade promotion agency, the EU was responsible for 34.3 percent of the world’s apparel imports by value in 2024, with suppliers from developing countries making up 43.9 percent of all clothing imported, down from 48.2 percent in 2019. That declining share reflects the same diversification and near-shoring trend affecting China: EU buyers are sourcing more from within the region itself.

Who exports the most within the EU 🔗

Intra-European trade plays an outsized role in the bloc’s apparel economy. CBI’s research shows that Germany, the Netherlands, and Italy together supplied 24.3 percent of all apparel imports into the EU in 2024, with Poland, Spain, and France also contributing meaningfully. Italy in particular has long been considered the manufacturing and design heart of European fashion, known for high-value woven apparel, knitwear, and luxury goods rather than mass-market basics.

What this shift means for the industry 🔗

Put these four regions side by side and a clear pattern emerges. China is not disappearing from apparel trade, it is repositioning itself as a textile supplier to other exporting nations while its share of finished garment exports gradually declines. Bangladesh is doubling down on scale and sustainability to defend its position as the RMG leader. Vietnam is betting on trade agreements, speed, and compliance rather than rock-bottom pricing. And the EU, unusually, functions as both the world’s biggest customer and one of its biggest sellers, propped up by a tightly integrated internal supply chain.

For apparel businesses and retail students, this fragmentation carries a practical lesson. Relying on a single sourcing country is increasingly risky, whether due to tariffs, currency swings, labour shortages, or environmental regulation. This is why industry consolidation has become such a common strategy among global buyers: reducing the number of manufacturing partners they work with, and in turn, manufacturers narrowing their customer base. Fewer, deeper relationships mean less strain on logistics, better price negotiation, and more reliable service, even if it means giving up some flexibility to switch suppliers on short notice.

Margins across the industry remain thin, and challenges like inconsistent demand, geopolitical tension, and rising compliance costs are not going away. Firms that survive are the ones revisiting their basic retail operations rather than assuming past sourcing strategies will keep working. The countries covered here illustrate that global apparel leadership is not fixed, it moves with labour costs, trade policy, and how seriously a country invests in staying competitive.

What do you think? 🔗

What do you think? With China’s share of finished garment exports declining and Vietnam and Bangladesh both expanding, do you think India is positioned to capture a larger share of this shifting apparel market? And as sustainability becomes a bigger factor in sourcing decisions, will countries that invest early in green manufacturing, like Bangladesh has, gain a lasting edge over competitors that compete mainly on price?

References

1. https://shenglufashion.com/category/statistics/
2. https://fashionunited.uk/news/business/global-apparel-exports-eu-displaces-china-from-top-spot/2025072382962
3. https://www.bssnews.net/at-a-glance/291544
4. https://www.dhakatribune.com/business/415111/53-of-100-top-green-factories-now-in-bangladesh
5. https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Cotton+and+Products+Annual_Hanoi_Vietnam_VM2025-0013.pdf
6. https://vietnam.incorp.asia/vietnam-textile-and-garment-industry/
7. https://www.vietnam-briefing.com/news/seizing-investment-opportunities-vietnams-textile-garment-industry.html/
8. https://www.cbi.eu/market-information/apparel/what-demand