Campus Units

Apparel, Events and Hospitality Management

Document Type

Article

Publication Version

Published Version

Publication Date

12-26-2016

Journal or Book Title

Fashion, Industry and Education

Volume

14

Issue

2

First Page

11

Last Page

23

DOI

10.7741/fie.2016.14.2.011

Abstract

This study investigated the comparative advantages of the Bangladeshi and Vietnamese apparel industries using Global Value Chain (GVC) framework. In this study, the GVC framework was expanded to include social and environmental sustainability issues. Secondary data, for the 2012 - 2013 period, were collected and analyzed for each component of the apparel GVC. The findings indicated that while both countries have unique comparative advantages, Vietnam clearly emerged as a leader on many GVC components. Bangladesh’s comparative advantage lies in lower wages, producing high volume orders, and lean manufacturing. In spite of Vietnam’s higher labor costs, it has comparative advantages in higher productivity, skilled and trained workers, manufacturing of intricate styles of high quality, agility and flexible manufacturing, more developed infrastructure and logistic services as well as greater social and environmental compliances. This study contributes towards insight into best sourcing fit for fashion brand business models. Based on the findings, fashion driven companies offering more complex styles at a faster rate will benefit from choosing Vietnam. In contrast, Bangladesh might be a better choice for high volume driven companies that offer basic apparel and better value for their consumers. From theoretical perspective, the research makes an important contribution by expanding the GVC framework.

Comments

This article is published as Jacobs, B., Simpson, L., Nelson, S., & Karpova, E. Matching sourcing destination with fashion brands’ business model: Comparative advantages of Bangladesh and Vietnam apparel industries. Fashion, Industry and Education, 14(2), 11-23. Doi: 10.7741/fie.2016.14.2.011.

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Copyright Owner

The Costume Culture Association

Language

en

File Format

application/pdf

Share

COinS