Cambodia and Myanmar race to become the next apparel manufacturing hub

As China battled a wave of Covid-19 flare-ups over the past few months with strict control measures, the widespread disruption of business operations fuelled concerns over an accelerating exodus of manufacturing.

From October 2021 to March 2022, China lost around 5 per cent of its textile export orders, 7 per cent of its furniture and 2 per cent of its mechanical and electrical export orders from the United States to the 10-member Association of Southeast Asian Nations (Asean), especially Vietnam, according to US customs data.

A shift of factories away from China has been underway for years as China’s labour costs rise. Countries in South-east Asia and South Asia such as Vietnam and India have become the top alternatives for their abundant and cheap labour forces.