A report by Fitch Solutions predicts Cambodia, Myanmar, and Vietnam to gain most from shifts in apparel manufacturing. The report says, China’s reduction of apparel manufacturing operations creates new opportunities for its neighboring countries to expand their presence as suppliers to China, and grow their market share in North America and Europe at China's expense.

Vietnam has already benefitted by signing free trade agreements during the trade war between the US and China. As a result, the country’s apparel exports jumped 30 per cent and raised its global apparel exports share to 8.7 per cent in 2019, up from 6.8 per cent in 2018.

Similarly Cambodia can also benefit as its apparel manufacturing sector has grown at a compound annual growth rate of 13 per cent over the last decade, with relatively low labor costs and favorable investment policies -- including allowing full foreign equity ownership in the textile sector -- expected to continue supporting this.

Being able to use Vietnamese shipping ports also helps Cambodia with transport and import of raw materials from China. Myanmar is also expected to continue seeing strong growth in low-value and lower-quality basic garments with numerous seaports that facilitate shipping at one of the cheapest rates in the region.