Our Garment Industry Must Win the Battle for Brand Value 

Bangladesh’s garment industry recently made headlines by overtaking China to become the second-largest clothing exporter to the United States in 2026. On the surface, this appears to be a remarkable achievement. However, a closer look at how much the country earns per kilogram of clothing exported reveals a rather different picture. Bangladesh may be selling more garments, but it is not necessarily capturing their full value.

Eurostat data show that, during the first half of 2026, Bangladeshi garments entered the European Union at an average price of €13.80 per kilogram, down from €15.07 in the corresponding period of the previous year. Vietnam, by contrast, earned nearly €29 per kilogram, more than twice Bangladesh’s average. Industry leaders attribute much of this difference to the types of products the two countries export. While Bangladesh remains heavily dependent on basic, low-value garments, Vietnam has moved towards higher-value, technical and branded products. A simple T-shirt illustrates the difference: a shirt manufactured in Bangladesh might sell for $2, while a comparable Vietnamese product could fetch $4.

This disparity is not new. A 2022 International Trade Centre report found that Bangladeshi men's cotton trousers sold for an average of $7, compared with $10.76 for Vietnamese products. The difference was even more pronounced in man-made-fibre bras, where Vietnamese exporters reportedly earned nearly twice as much as their Bangladeshi counterparts. Years of industry expansion and repeated rounds of wage negotiations have done little to close this gap. If anything, it has widened.

Eurostat data show that, during the first half of 2026, Bangladeshi garments entered the European Union at an average price of €13.80 per kilogram, down from €15.07 in the corresponding period of the previous year. Vietnam, by contrast, earned nearly €29 per kilogram, more than twice Bangladesh’s average.

The conventional explanation points to production costs and productivity, but that tells only half the story. A pair of trousers is worth what a buyer believes it is worth, and that perception is formed long before the fabric is cut. Vietnam has not simply improved its manufacturing capacity; it has built a stronger reputation in higher-value product categories. Its factories have moved into complex, design-intensive segments such as jackets, blazers and technical sportswear. Industry insiders in Dhaka point out that major global sportswear brands often turn to Vietnam for their technical product lines, while Bangladesh, with only a handful of blazer-making factories compared with Vietnam’s much larger manufacturing base, remains a secondary option for similar orders.

This is the power of brand positioning, and it is self-reinforcing. Once buyers associate a country with a particular product category, orders naturally gravitate towards that market. The overlooked supplier then loses access to the very orders it needs to demonstrate its capabilities. Bangladesh has become strongly associated with inexpensive, basic garments, and the industry has done relatively little to challenge that perception.

To be fair, efforts have been made to change the international image of the ‘Made in Bangladesh’ label. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in collaboration with CNN International Commercial, has promoted the country’s garment industry to global audiences. It has also organised ‘Made in Bangladesh Week’ to showcase the sector’s achievements. There is substantial evidence to support this narrative. Bangladesh has more LEED-certified green garment factories than any other country, while independent assessments have placed its manufacturing practices second only to Taiwan's in the region. These are genuine competitive advantages that deserve international recognition.

The problem is that most of these promotional campaigns tell a compliance story rather than a value story. They demonstrate that Bangladesh can manufacture garments responsibly and sustainably, but say considerably less about its ability to produce sophisticated, high-value products. A buyer can be fully convinced of the country's ethical manufacturing standards and still send blazer and technical-wear orders to Hanoi because Bangladesh has not sufficiently communicated its capabilities in those categories. Compliance earns the country a place at the table; it does not automatically increase the price buyers are willing to pay.

Closing this gap requires marketing discipline alongside improvements in wages, energy supply and productivity. Three strategic shifts could make a difference.

First, Bangladesh must choose specific product categories and build a recognisable identity around them rather than trying to claim every competitive advantage at once. Vietnam has established a strong reputation in technical and sportswear manufacturing, allowing its capabilities in those segments to attract further business. Bangladesh, meanwhile, promotes security, sustainability, low costs and high production volumes simultaneously. These are useful attributes, but a collection of features is not the same as a clear market position.

Second, the industry must turn its manufacturing strengths into a recognisable selling proposition. In marketing, an ingredient strategy means making a product's underlying quality or production capability part of its identity. Bangladesh's green factory certifications and ethical manufacturing credentials should therefore be visible on product labels, sourcing presentations and buyer communications, rather than remaining confined to trade publications and conference speeches. Buyers should be able to associate the 'Made in Bangladesh' label with identifiable standards of quality, sustainability and manufacturing excellence.

Third, the transition towards higher-value products should begin in market segments where Bangladesh already has a strong presence. Its growing share of EU apparel imports, even as Vietnam commands higher prices per kilogram, represents an established relationship with international buyers. This provides an opportunity to introduce more sophisticated products, expand existing partnerships and gradually reshape how buyers perceive the country's manufacturing capabilities before its current market advantage narrows.

None of these measures can replace the harder structural work of strengthening backward linkages, ensuring reliable energy supplies and investing in design education. However, factories can meet every productivity benchmark set by consultants and still receive lower prices because value is not determined on the factory floor alone. It is also shaped by what buyers believe a country can deliver long before an order is placed. This is the part of Bangladesh's garment strategy that has remained largely unmanaged, while Vietnam has spent years building its reputation around it.

Bangladesh has already proved that it can manufacture garments at scale. Its next challenge is to convince the world that it can manufacture value, too.