The concept of Global value chains provides a better understanding of the value creation process and helps understand how this value is captured, held, and leveraged in all industries. The Global value chain approach offers a global view of the World’s industries from two perspectives: governance and upgrading. The former focuses mainly on leading companies and how their supply chains are organized on a global scale. At the same time, the latter involves the strategies that countries, regions, companies, and other actors use to maintain or improve their positions in the global value chain from this perspective, the case of the textile and apparel industry can be seen as a clear example of the strategic use of Global value chain in a competitive and dynamic business world. The Ethiopian textile and garment industry is at par with many countries It is a hub for buying apparel, fabrics, and other accessories required for garment designing. The purpose of this paper is to analyze the value chain and how it influences the textile and apparel exports in Ethiopia. For the purpose of the paper, secondary data were collected from the various sources like in internet sites, and related data sources were cited in the literature review for the purpose of data analysis. The findings of the study showed that Ethiopia is more competitive in the textile and apparel exports and also it can be used by policy makers to evaluate the competitiveness of the country. Social implications the findings can be used to assess social upgrading issues in the textile and apparel sector.