Apparel sourcing won’t catch a break in the coming year where costs are concerned. As companies look to scale back China sourcing to mitigate the impact of the US-China trade war, and higher tariffs and costs of uncertainty that have come with it, they’ll also be grappling with higher costs in alternative sourcing countries.

Vietnam, perhaps the biggest beneficiary of the US-China trade fallout, will see its minimum wage increase in 2019, adding costs for companies looking to find sourcing solace away from China. In Bangladesh, factory owners are working on the new pay structure and are expected to implement the wage hike in January. If so, it will mark a 51 per cent increase in labor costs for Bangladesh.

In October, garment workers in Cambodia got a seven per cent increase to their minimum monthly pay. The increase is smaller than the 11 per cent increase in October last year. However, conditions in Cambodia’s garment and footwear sector have improved, with areas like child labor and payment of wages showing progress, though sustainable change is still required. As of April this year, the minimum wage in Myanmar went up 33 per cent.