The ongoing trade war between USA and China seems to be
benefitting two apparel manufacturing powerhouses from Asia,
namely Bangladesh and Vietnam!
As per a recent CNN report, Bangladesh and Vietnam, along with
countries like Taiwan and South Korea are gaining from this
ongoing trade war as Americans are reportedly buying less from
China. Besides, rather than depending on US producers, they’re
reportedly trying to avoid the tariffs imposed by the Trump
administration by turning to suppliers in other Asian countries.
As per the report, during the first 5 months of the year, the
United States imported 12 per cent lesser goods from China as
compared to the same time period a year ago. On the other hand,
imports from Vietnam are up 36 per cent while that from
Bangladesh has increased by 14 per cent.
However, it is yet not clear whether the companies are
permanently shifting production outside of China, or simply
rerouting goods for minimal processing before being shipped to
the United States, underlined the report.
As per a recent Reuters report, Vietnam’s customs agency has
reportedly started cracking down on goods of Chinese origin
illegally relabelled “Made in Vietnam” by businesses attempting
to avoid the US tariffs.