Bangladesh vs Vietnam vs China vs India for clothing manufacturing

China is the largest clothing exporter, followed by Bangladesh and Vietnam, and all four countries can make good clothing. For EU buyers in 2026 the difference is duty: Bangladeshi garments enter duty-free under Everything But Arms until about November 2032, three years after graduation, Vietnam’s mostly duty-free with strict fabric origin rules, and China’s and India’s at standard duty. Bangladesh is strongest in cotton knits, denim and sweaters. The right choice depends on your product, your market’s duty rules and how much fabric flexibility you need, so this comparison focuses on the facts that change landed cost and risk.

Scale

In 2025, China held 27.3% of world clothing exports, Bangladesh 6.8% and Vietnam 6.5%, according to the WTO’s Statistical Tables 2026. Bangladesh’s own export figures show garment exports of US$38.70 billion in FY2025–26, after US$39.35 billion the year before.

Duty into the European Union

Duty into the United States

None of the four has a US trade preference on garments, so each pays the same general (MFN) rate for its HTS line. The difference is the Section 301 tariff that the US Trade Representative imposed on goods entered from 24 July 2026: 10% on goods of Bangladesh and India, 12.5% on goods of Vietnam and China. Checked in the US tariff schedule on 14 October 2026:

On a T-shirt with a customs value of US$3.00, that is 7.5 US cents a piece in Bangladesh’s favour over Vietnam and 30 cents over China; against India the duty is the same. Our guide to US tariffs on clothing from Bangladesh gives the rate for other garments, and the page for US brands covers entry paperwork. For the UK, see our page for UK brands.

When Bangladesh is a strong fit

• Cotton knitwear and basics: t-shirts, polos, fleece, sweatshirts and babywear.
• Denim and sweaters, with large specialist factories and wash plants.
• EU and UK buyers who benefit from duty-free access, in the EU until about November 2032.
• Buyers who value green building standards: Bangladesh has the most LEED-certified garment factories of any country.

When to consider another country

• Technical outerwear or performance fabrics that depend on synthetic fabric supply close to the factory.
• Very short lead times for a market far from South Asia.
• Product categories where your existing suppliers and fabric mills are already elsewhere.

Minimum wages, side by side

Labour is a smaller share of a garment price than most buyers assume, at 15–24% of the cost of making basic garments in Bangladesh, but the statutory minimums show where each country starts. They are set in local currency and revised on different cycles, so compare them as an order of magnitude rather than to the cent.

Two things follow. Bangladesh’s minimum is the lowest of the four in local terms, which is where its price advantage on labour-heavy basics comes from. And a wage rise of the size agreed in 2024 moves a garment price by cents, not dollars, so a buyer choosing between these countries should weigh fabric supply, duty and lead time at least as heavily as wages.

Lead times and logistics

Duty is only part of the comparison. Bangladesh's ports are more prone to congestion, so build buffers or use air for first drops, and compare transit times on the same lane to your own port rather than across different routes. China's advantage is rarely labour cost now; it is the density of its fabric and trim supply, which shortens development. Vietnam sits between the two, with strong synthetic fabric supply. India has cotton at home, which helps for cotton-rich programmes.

Compliance and audits

All four countries can supply audited factories, but the emphasis differs. Bangladesh has a uniquely well-documented factory safety programme after 2013, with a public list of inspected export factories, and the most LEED-certified garment factories of any country. In every case, what matters is the specific site making your goods, not the country: ask for the audit of that factory and verify it yourself.

How brands actually split a range

Most experienced buyers do not choose one country. They place cotton knits and denim where those are strongest, technical outerwear where the fabric supply sits, and fast in-season repeats nearer the market. Splitting also protects you from a single-country tariff shock, which the US tariff changes of 2025 and 2026 made concrete. The practical test for each style is simple: which country has the fabric, the machinery and the duty position that suits this garment?

How to compare fairly

Compare the same specification, and compare landed cost rather than factory price: fabric, making, testing, freight, duty and the cost of delays or rejected goods. Many brands split production, keeping cotton basics in Bangladesh and sourcing technical items elsewhere. If you want a Bangladesh price to compare, send us your tech pack.