[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG Businesses eye opportunities amid US-China trade war

The country’s readymade garment manufacturers said that Bangladesh needs to improve and stabilise its law-and-order situation and business atmosphere to seize the opportunities emerging from the ongoing US-China trade tensions.

www.newagebd.net

RMG Businesses eye opportunities amid US-China trade war
Saddam Hossain 15 February, 2025, 23:04

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj. | New Age photo

The country’s readymade garment manufacturers said that Bangladesh needs to improve and stabilise its law-and-order situation and business atmosphere to seize the opportunities emerging from the ongoing US-China trade tensions.

After assuming office as the president of the United States, ‘tariff man’ Donald J Trump has implemented a series of executive order tariffs on its key trading partners, including Canada, Mexico, and China, as part of its broader trade policy agenda.

Recently, he imposed additional 25 per cent tariffs on Canadian and Mexican imports and 10 per cent tariffs on Chinese goods including textiles which may shift the trade dynamics between these two economic giants.

The industry insiders said that as Chinese exports to the US become more expensive due to tariffs, global buyers will shift their orders to other low-cost countries.

In this regard, Bangladesh will be a natural choice along with other competitors with its unshakable RMG sector.

The US is the single largest export destination for Bangladeshi RMG shippers, who exported apparel items worth $7.34 billion in 2024.

Moreover, Bangladesh secured the second-largest source of US apparel imports, with a 9.26 per cent market share.

China remains the market leader in the US, with a market share of 20.83 per cent, and the country exports apparel items worth $16.51 billion.

Industry insiders said that the country’s apparel exports to the US are stable thanks to competitive pricing, sustainability, and compliance with international labor and environmental standards.

If Bangladesh addresses the remaining challenges, it could emerge as a key beneficiary of this geopolitical shift.

Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the law-and-order situation is improving gradually.

“But we need more improved and stable situation. The government should work stop shutting down of any factories. They have to provide policy supports in this regard,” he added.

He also said that the government has to solve the ongoing issues related to gas and energy. Interruption in gas and energy supply may hinder the golden opportunity.

“We also need to resolve the issues related to bonds, customs, and NBR. The corruption didn’t stop yet which is concerning for us. We hope the interim government can take many drastic decisions without any political burden. We urge the government to do this in the sake of country’s economy,” he added.

He also said that buyers have confidence in Bangladesh due to ethical and eco-friendly production practices. So, the manufacturers and government should work together to retain this confidence by maintaining a good business atmosphere, sustainable production, and a proper work environment.

Currently, Bangladeshi apparel exporters face a tariff of more than 15 per cent when exporting to the US, whereas Chinese exporters face 25 per cent.

Mohiuddin Rubel, former director of the BGMEA, told New Age that due to high production costs, apparel businesses in China have been gradually shifting.

“However, Trump’s tariff policy is making it earlier. Our competitors are also as same as our position to grab them, we have to address the challenges to grab these,” he added.

An improved business atmosphere and security will play crucial roles in raising businesses and attracting foreign direct investment.

“In the last fiscal, the FDI dropped by 8.8 per cent. Moreover, Bangladesh ranked 12th most corrupted country in 2024. We have to work hard to remove corruption to do better business and to attract more FDI,” he added.

He also said that the country should immediately focus on issues like infrastructure, fuel, and energy.

The manufacturers also stated the country must diversify its product basket by shifting its focus from T-shirts and sweaters and branching out into higher-value items.​

 

[Saif]

Apparel exports to Europe, US post robust growth

Bangladesh’s apparel shipments to key export markets—Europe and the US—posted robust growth in the first seven months of the current fiscal year of 2024-25.

www.thedailystar.net

Apparel exports to Europe, US post robust growth

Bangladesh's apparel shipments to key export markets—Europe and the US—posted robust growth in the first seven months of the current fiscal year of 2024-25.

This ushered in hopes that work orders would continue to come in increasing quantities, as some orders had been diverted from China amid tariff wars between the world's two biggest economies.

Exports to the European Union shot up 13.91 percent year-over-year to $11.81 billion in the July–January period of fiscal year 2024-25.

In the case of the US, the single biggest market for Bangladesh's garments, clothing shipments surged 16.45 percent to $4.47 billion in the first seven months of this fiscal year.

With this growth, the share of exports to the EU increased to 50.15 percent in the July–January period of this fiscal year, up from 49.31 percent in the same period a year ago.

The share of garment exports to the US increased to 18.99 percent in the July–January period of FY25 from 18.27 percent a year ago, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange, which describes itself as an organisation promoting Bangladesh's apparel industry, said apparel consumption declined worldwide in the last fiscal year.

And imports by both the US and Europe fell, he said.

"Now these economies are doing better. Obviously, this is a reason. Buyers are placing more orders," he said.

Export data showed that within the EU, Germany emerged as a key market, with Bangladesh's exports to the biggest economy in Europe growing 13.47 percent year-on-year.

Spain, France, and the Netherlands were the other major markets in the EU, where there were substantial exports.

The growth of apparel exports to the UK, another major market accounting for 10.83 percent of total shipments, increased by 4.55 percent in the July–January period of FY25.

Shipments of garments to non-traditional markets increased by 6.42 percent during the period, thanks to higher purchases by Japan and Australia, two major markets.

Yet exports to Russia, South Korea, China, the United Arab Emirates, and Malaysia have declined.

Rubel, also a former director of the BGMEA, said exporters focused on non-traditional markets when demand for apparel slowed in the US and Europe.

But there should be a focus on non-traditional markets for product diversification and the development of new markets, he said.

He said Bangladesh had been performing well in South Korea. "We should explore the reasons," he said.

Shams Mahmud, managing director of Shasha Denims Ltd, an apparel exporter, said, "The current growth is good. Some buyers have shifted orders from China because of the US-China tariff war."

"Global brands that have outlets in Asia have increased sourcing from us," he said, adding that one of the internal factors was an improvement in law and order.

Mahmud, also a former president of the Dhaka Chamber of Commerce and Industry, said the current export trend would continue if the industry can smoothly address payment issues for workers during the two upcoming Eid festivals and ensure a stable energy supply.

"If we can pass this critical period, we will be able to achieve our export projections," he said.

Rubel said the ongoing global trade tensions were reshaping the landscape, presenting opportunities that Bangladesh could capitalise on, provided the country possesses the necessary productive capacity.

"Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector's competitiveness and growth potential," he said.​

 

[Saif]

Bangladesh’s RMG exports show moderate growth, EU remains key market

Bangladesh’s Ready-Made Garment (RMG) exports have shown moderate growth, with the European Union remaining a key market, according to data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25. The EU represented 50.15% of Bangladesh’s total RMG

thefinancialexpress.com.bd

Bangladesh’s RMG exports show moderate growth, EU remains key market
UNB
Published :
Feb 16, 2025 20:59
Updated :
Feb 16, 2025 20:59

Bangladesh’s Ready-Made Garment (RMG) exports have shown moderate growth, with the European Union remaining a key market, according to data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25.

The EU represented 50.15% of Bangladesh’s total RMG exports, with a total value of US$11.81 billion, Mohiuddin Rubel, former director of BGMEA, said on Sunday while sharing the data.

Shipments to the United States reached US$4.47 billion, accounting for 18.99% of the total share, while the UK market was also significant, with exports valued at US$2.5 billion, equivalent to 10.83% of Bangladesh’s total RMG exports during the specified timeframe.

In terms of growth, our RMG exports to the EU expanded by 13.91% year-over-year, with the USA showing a robust increase of 16.45%. The RMG exports to the UK, however, grew at a more modest rate of 4.55%.

Within the EU, Germany emerged as a key market, with Bangladesh’s exports amounting to US$2.97 billion, trailed by Spain at US$2 billion, France at US$1.28 billion, and the Netherlands at US$1.25 billion. The growth rates were particularly notable in Germany (13.47%), the Netherlands (27.3%), Poland (13.7%), Denmark (18.56%), and Sweden (26.7%).

Bangladesh’s RMG sector also demonstrated growth in non-traditional markets, with an overall increase of 6.42%, signaling potential for further expansion.

Among these markets, Japan led with imports totaling US$721 million, followed by Australia at US$512 million, and India at US$427 million. Exports to countries like Turkey and Mexico are also significant, amounting to US$263 million and US$208 million, respectively. While growth in Japan, Australia, India, Turkey, and Mexico is encouraging during this period, exports to Russia, Korea, China, UAE, and Malaysia have declined.

The continued growth in exports is heavily reliant on the EU and USA, which remain the primary markets for Bangladesh, highlighting further potential within these regions.

The ongoing global trade tensions are reshaping the landscape, presenting opportunities that Bangladesh could capitalize on, provided we possess the necessary productive capacity.

Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector’s competitiveness and growth potential.​

 

[Saif]

Apparel exports to nontraditional market surge by 6.42pc

Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau...

www.newagebd.net

Apparel exports to nontraditional market surge by 6.42pc
Staff Correspondent 17 February, 2025, 23:02

A file photo shows workers sewing clothes at a readymade garment factory on the outskirts of Dhaka. Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25. | New Age photo

Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau.

The exports to the nontraditional market made up a significant 16.84 per cent of Bangladesh’s total RMG exports in the mentioned period.

According to the EPB data, Bangladesh exported apparel items worth $23.55 billion to their global export destinations in the July-January FY25. The earnings from woven was $10.86 billion, and knitwear was $12.68 billion.

In terms of apparel exports, countries like the US, Canada, the UK, and EU are considered traditional markets, while other countries are considered non-traditional markets.

Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico, and others are major non-traditional export destinations.

Of the $3.97 billion export earnings, $1.99 billion was from knitwear items, and $1.97 billion was from woven.

Among the nontraditional market, Japan was the top destination for Bangladeshi RMG products, as the exporters shipped apparel items worth $721.50 million to Japan in July-January of FY25.

This was followed by Australia, India, and South Korea, where Bangladesh exported RMG items worth $512.88 million, $427.62 million, and $271.48 million, respectively.

In the mentioned period, the export earnings from non-traditional Turkiye, Mexico, the United Arab Emirates, and China markets stood at $263.08 million, $208.03 million, $144.32 million, and $130.91 million, respectively, in July-January of FY25.

However, exports have decreased in several markets, including Russia, South Korea, China, the United Arab Emirates, Malaysia, Saudi Arabia, and New Zealand.

According to industry insiders, there is huge potential in nontraditional markets for the country’s apparel exporters. In this regard, detailed research on the trends, tastes, and clothing styles of local consumers is a must to increase exports manifold there.

In July-January of FY25, the European Union remained the largest destination for Bangladeshi apparel exporters where the country shipped apparel items worth $11.81 billion, which was 50.15 per cent of the total RMG exports.

Bangladesh shipped apparel worth $4.47 billion to the USA, the largest single destination for the country’s apparel, in the mentioned period. The US market covered 18.99 per cent of the total apparel exports.

Moreover, the EPB data added that in July-January of FY25, Bangladeshi manufacturers exported RMG products worth $2.55 billion to the UK, 10.83 per cent of the total export earnings from the RMG sector.

Bangladesh received $751 million from Canada in the period as mentioned above, which was 3.19 per cent of the total earnings from apparel exports.

Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that exports to the nontraditional market have witnessed a boost since 2009; however, for several years, they stood around 16-18 per cent.

‘We need to figure out the demands, trends and upcoming events at the nontraditional markets and focus on our production as per this. Like, Saudi Arabia will host FIFA World Cup 2034 and is spending much on domestic sports. We need to focus on Saudi to grab the market,’ he added.

He also urged the embassies in the respected countries to be proactive and urged the manufacturers to attend events and penetrate them.

Former BGMEA director Mohiuddin Rubel urged qualitative changes and diversifying product lines.

‘Development of infrastructure that meets product demand requires enhanced R&D,’ he added, saying that they must come out of the traditional way to grab non-traditional markets.

In FY24, Bangladesh earned $6.09 billion from the nontraditional markets.​

 

[Saif]

Apparel exports to EU rise by 4.8pc in 2024

Bangladesh’s apparel exports to the European Union in 2024 increased by 4.8 per cent to 18.27 billion euros from 17.44 billion euros in 2023 riding on the late year surge in shipment...

www.newagebd.net

Apparel exports to EU rise by 4.8pc in 2024
Moinul Haque 18 February, 2025, 22:39

Bangladesh’s apparel exports to the European Union in 2024 increased by 4.8 per cent to 18.27 billion euros from 17.44 billion euros in 2023 riding on the late year surge in shipment.

According to data from the Eurostat, the statistical office of the EU, Bangladesh’s knitwear segment saw a notable increase in 2024, rising from 10.66 billion euros in 2023 to 11.04 billion euros in 2024, with 3.6 per cent increase.

The woven apparel sector also saw stronger growth of 6.7 per cent, increasing from 6.78 billion euros in 2023 to 7.24 billion euros in 2024.

Data showed that December 2024 marked a strong finish to the year for EU apparel imports from Bangladesh, with total imports rising by 36.2 per cent to 1.54 billion euros compared with those of 1.13 billion euros in December 2023.

The EU data also showed that Bangladesh’s apparel exports to the 27-nation economic bloc in past one decade increased by 58 per cent to 18.27 billion euros in 2024 from 11.54 billion euros in 2015.

According to the data, between 2015 and 2019, Bangladesh’s apparel exports to the EU grew steadily by 7 to 9 per cent annually, reaching 14.96 billion euros by 2019.

However, in 2020, the Covid pandemic caused a sharp decline of 17.6 per cent, with exports falling to 12.32 billion euros.

The apparel exports to the EU then rebounded strongly, with a 16-per cent growth in 2021, reaching 14.29 billion euros, and a remarkable 53-per cent increase in 2022 and thus soaring to 21.91 billion euros.

In 2023, Bangladesh’s apparel exports to the EU dropped by 20.4 per cent to 17.44 billion euros due to global challenges, including war and high inflation, but by 2024, the sector showed resilience, with exports rising by 4.8 per cent to 18.27 billion euros.

Data showed that the overall apparel imports by the EU from different countries in 2024 slightly increased by 1.37 per cent to 85.48 billion euros from 84.33 billion euros in 2023.

Bangladesh remained the second-largest apparel exporter to the EU after China.

China retained its position as the EU’s largest apparel exporter in 2024, with exports rising by 2.3 per cent to 24.04 billion euros from 23.5 billion euros in 2023.

The EU’s apparel imports from Turkey in 2024 declined by 6.7 per cent to 9.31 billion euros from 9.29 billion euros in 2023.

The EU’s apparel imports from India increased by 1.9 per cent to 4.18 billion euros in 2024 compared with those of 4.1 billion euros in the preceding year.

Vietnam’s apparel exports to the EU in 2024 grew by 4 per cent to 3.98 billion euros from 3.82 billion euros in 2023.

Cambodia and Pakistan had stellar performance in exporting readymade garments to the EU in 2024.

The EU’s apparel imports from Cambodia in 2024 increased by 20.3 per cent to 3.9 billion euros compared with those of 3.24 billion euros in the previous year.

Pakistan’s apparel exports to the EU increased by 11.6 per cent to 3.51 billion euros in 2024 compared with those of 3.13 billion euros in 2023.​