COVID-19 Pandemic and the Future of China-Plus-One Strategy in Apparel Trade: A Critical Analysis from Bangladesh-Vietnam Point of View

Abstract

This research paper was intended to provide a conceptual discussion related to the newly arisen business model termed as “China-Plus-One”, which deals with the practice of international trade between China and a 3rd world Asian country. One of the key achievements of this strategy is that it encourages mutually beneficial trade across geographical boundary. Different world recognized global studies had proclaimed that the Southeast Asiatic region will be the next hotspot of textile and apparel trade due to the availability of raw materials and low paid labor force. As a result, numerous industrial groups of China are looking forward to attaining comparative business advantages by investing at another location of manufacturing in the Southeast Asia. This research paper conveyed a two-fold story. In the very beginning, it was expected to evaluate the comparative market position of the major textile and apparel trade competitors (especially China, Bangladesh and Vietnam). Later on, it analyzed the pattern of rapidly changing business situation due to competitive production factors such as labor cost, logistic support, utility cost, ease of doing business, corruption index etc. Though “China-Plus-One” strategy is a promising one, not that much study hadn’t yet taken place regarding it. China-Plus-One strategy appears to be beneficial for both firms that seek to pursue it with a view to risk diversification, cost advantage, product and market diversification. The purpose of this study is to sort out the convergence or divergence of textile and apparel trade in the Southeast Asiatic region due to this business philosophy.