Asia’s leading textile and apparel-exporting countries are entering a new phase of global competition in which labour standards, wage equity, gender equality and regulatory compliance are becoming increasingly important alongside manufacturing cost, quality and delivery, according to a new academic study.
The study, Evaluating Wage Disparities and Labor Policies in the Global Textile Industry – A Path Towards Equitable Worker Welfare, was authored by Mazed Islam, Senior Lecturer in Sustainable Fashion and Textiles at Winchester School of Arts, University of Southampton, UK, and Jepy Dewan, Senior Assistant Secretary at Bangladesh’s Ministry of Water Resources. It was published in the South Asian Journal of Social Sciences and Humanities.
The research examines labour conditions and wage disparities across major Asian textile-producing countries, including China, Bangladesh, India and Vietnam. It argues that while low labour costs remain an important sourcing advantage, long-term competitiveness will increasingly depend on productivity, workforce skills, labour governance and responsible supply-chain practices.
Bangladesh remains one of the world’s most cost-competitive apparel manufacturing bases. However, the study highlights a significant gap between statutory wages and living-wage requirements. Bangladesh’s revised garment-sector minimum wage covers only around 38% of an estimated living wage, raising concerns over workers’ purchasing power and income security.
Vietnam presents a contrasting model. With higher textile wages and regional minimum wages, the country is increasingly competing through productivity, manufacturing capability and higher-value production rather than ultra-low labour costs. Vietnam’s regional minimum wage increased by 7.2% in 2026, further reinforcing the shift towards a higher-wage, productivity-driven model.
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India offers comparatively higher wages but faces significant regional disparities because minimum wages are determined at the state level. China, meanwhile, has increasingly moved away from low-cost apparel production towards automation, technology and higher-value manufacturing.
The study also highlights persistent gender inequality across the region. Women represent a major share of garment workers but remain concentrated in lower-paid production roles, while technical, supervisory and management positions continue to be dominated by men. The research cites an unadjusted gender wage gap of 22% in Bangladesh and 64.5% in Pakistan.
Occupational segregation, unequal access to better-paid jobs, career interruptions related to maternity and childcare, and limited skills-development opportunities are identified as key drivers of the gap.
Another major concern is weak enforcement. The study argues that many Asian exporting countries have developed extensive labour legislation, but implementation remains inconsistent. In Bangladesh, for example, the research points to limitations in labour inspections, enforcement capacity and penalties despite thousands of inspections being conducted annually.
The pressure on suppliers is also increasing as global brands face stronger human-rights and sustainability requirements. The European Union’s evolving corporate due-diligence framework and its upcoming Forced Labour Regulation are expected to increase scrutiny of labour conditions and supply-chain practices.
The study also stresses that brands cannot demand higher labour standards while maintaining excessive pricing pressure on suppliers. Responsible purchasing practices, realistic prices, longer-term supplier relationships and productivity investment will be necessary to support better wages and working conditions.
For Bangladesh, the challenge is to transform its traditional low-cost advantage into a broader productivity advantage through skills development, technology, better wage structures, stronger labour-law enforcement and greater gender equality.
The study concludes that the next phase of Asian apparel sourcing will be determined less by who offers the cheapest labour and more by who can combine competitive manufacturing, productivity, fair wages, credible labour standards and responsible supply-chain management.