Competitiveness of Global Apparel Industry: A Study Based on Transaction Cost Theory.

This article examines the global competitiveness of the apparel industry with a comparative focus on China and Bangladesh, using transaction cost theory (TCT) as the analytical framework. Based on qualitative research involving interviews with key stakeholders, the study finds that rising competition—particularly from emerging players like Vietnam—and shifting trade dynamics significantly impact both countries' apparel sectors. China faces challenges from rising labor costs and U.S. trade tariffs but maintains competitiveness through technological innovation and efficient lead time management, while Bangladesh struggles with limited adoption of advanced technologies, longer lead times, and potential loss of preferential trade benefits following its upcoming graduation from Least Developed Country (LDC) status. The article highlights potential areas for mutual cooperation between China and Bangladesh, including foreign direct investment (FDI), joint ventures, and leveraging China's Belt and Road Initiative (BRI), which could enhance competitiveness for both nations in the evolving global apparel market.