Emerging Apparel Manufacturing Hubs to Watch in 2025

Where Global Production Is Shifting Next

As brands rethink their sourcing strategies for better cost-efficiency, speed, and resilience, new apparel manufacturing hubs are gaining momentum. Rising labor costs in traditional regions and supply chain disruptions have pushed many to explore fresh alternatives with strong infrastructure, favorable trade conditions, and untapped capacity.

At [smpl], we constantly monitor these shifts so our partners can source smarter. Here are the top emerging hubs to watch in 2025:

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1. Vietnam’s Secondary Cities

While Vietnam has long been a powerhouse, cities like Hue, Quang Nam, and Thai Nguyen are gaining steam. These areas offer:

Lower labor and facility costs than Hanoi or Ho Chi Minh

Skilled labor expanding through government training programs

Continued benefits under EVFTA and CPTPP trade deals

2. Bangladesh’s Expansion Beyond Dhaka

Bangladesh is still one of the top choices for apparel production. But in 2025, expect movement beyond Dhaka to Chattogram, Gazipur, and Narayanganj, thanks to:

Industrial park investments

Strong logistics growth around the port of Chittagong

Government incentives for green and LEED-certified factories

3. Jordan and Egypt

The QIZ trade agreement continues to give Jordan and Egypt duty-free access to the U.S. market. As China+1 sourcing strategies expand, these hubs are ideal for:

Quick lead times to Europe and the U.S.

Stable political and investment climates

Competitive pricing with skilled garment labor

4. Central America: Honduras & Guatemala

For nearshoring to the U.S., Central America is heating up. Honduras and Guatemala in particular offer:

Duty-free trade under CAFTA-DR

Shorter shipping windows to U.S. retailers

Increased investment in vertical manufacturing setups

5. North Africa: Morocco & Tunisia

North Africa is attracting brands looking for fast shipping into Europe. Morocco and Tunisia provide:

Proximity to major EU markets

Growing tech and digital sample capabilities

Well-established garment clusters, especially for denim and knitwear

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Choosing the right hub impacts your costs, speed, and supply chain resilience. Emerging markets can give your brand a competitive edge, if you know where and how to partner.

At [smpl], we help brands navigate these shifts with a vetted network of factories and logistics partners across these rising regions.