Matching Sourcing Destination with Fashion Brands’ Business Model: Comparative Advantages of Bangladesh and Vietnam Apparel Industries

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Elena Karpova, Putman & Hayes Distinguished Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: This study investigated the comparative advantages of the Bangladeshi andVietnamese apparel industries using Global Value Chain (GVC) framework. In thisstudy, the GVC framework was expanded to include social and environmentalsustainability issues. Secondary data, for the 2012 - 2013 period, were collected andanalyzed for each component of the apparel GVC. The findings indicated that whileboth countries have unique comparative advantages, Vietnam clearly emerged as aleader on many GVC components. Bangladesh’s comparative advantage lies in lowerwages, producing high volume orders, and lean manufacturing. In spite of Vietnam’shigher labor costs, it has comparative advantages in higher productivity, skilled andtrained workers, manufacturing of intricate styles of high quality, agility and flexiblemanufacturing, more developed infrastructure and logistic services as well as greatersocial and environmental compliances. This study contributes towards insight intobest sourcing fit for fashion brand business models. Based on the findings, fashiondriven companies offering more complex styles at a faster rate will benefit fromchoosing Vietnam. In contrast, Bangladesh might be a better choice for high volumedriven companies that offer basic apparel and better value for their consumers. Fromtheoretical perspective, the research makes an important contribution by expandingthe GVC framework.

Additional Information

Fashion, Industry and Education, 14(2), 11-23
Language: English
Date: 2016
sourcing, Bangladesh, global value chain, Vietnam

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