[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Safety condition improves, challenges remain

Bangladesh’s readymade garment industry has undergone a significant change in the aftermath of the Rana Plaza collapse, one of the deadliest industrial accidents in the country, but there are still in the sector many issues to be addressed...

www.newagebd.net

Safety condition improves, challenges remain
Saddam Hossain 23 April, 2025, 23:34

Representational image. | New Age file photo

Bangladesh’s readymade garment industry has undergone a significant change in the aftermath of the Rana Plaza collapse, one of the deadliest industrial accidents in the country, but there are still in the sector many issues to be addressed.

RMG businesses said that once criticised for its unsafe working conditions, the country’s sole multi-billion-dollar export sector had taken serious strides in rebuilding its reputation and restoring global confidence after the tragic accident 12 years ago.

However, rights activists, brands and foreign partners said that safety issues in the sector had improved after the accident, but the progress could not be termed sustainable.

On April 24, 2013, Rana Plaza, an eight-story building at Savar, on the outskirts of the capital Dhaka, crumbled during working hours, killing 1,138 people, mostly garment workers, and injuring thousands others.

Talking to New Age, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that issues related to safety, compliance and worker rights had experienced a major improvement since the Rana Plaza collapse.

‘However, the incident was a tragic and painful event for the industry and we will have to feel the pain in our whole lifetime,’ he added.

Industry insiders said that the factories had followed strict policies to ensure fire, electrical and structural safety and had spent significant amounts of money on those areas.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, told New Age that in recent years, they had taken major initiatives to ensure a safe working environment in the RMG industry.

‘An extensive reform has been carried out in the industry with the support of the government, buyers, trade unions and other international organisations, including the International Labour Organisation,’ he added.

He also said that the government-led initiative and the buyers-led Accord and Alliance inspected about 4,000 factories with the aim of improving safety issues in the units.

‘The building collapse was a tragic incident in the history of this industry. But we have taken that as a turning point and put in all-out efforts to build a safe and sustainable industry,’ he added.

He also said that each factory spent on average Tk 5 crore on factory renovation, detailed engineering assessment and retrofitting.

A 2021 report by McKinsey consultancy labelled Bangladesh’s RMG sector a frontrunner in transparency regarding factory safety and value-chain responsibility.

Another report by QIMA, a global supply chain compliance solutions provider, ranked the country second in the same year’s ethical manufacturing index.

Moreover, Bangladesh also amended its labour law twice, in 2013 and 2018, to safeguard workers’ rights and ensure workplace safety.

The country increased workers’ minimum wages by 56 per cent in 2023 and raised the increment to 9 per cent from 5 per cent in 2024.

In terms of LEED-certified green factories, Bangladesh also witnessed a big jump.

Before the Rana Plaza accident, there were only two green factories in the country.

Currently, the US Green Building Council has certified 240 Bangladeshi factories as LEED (leadership in energy and environmental design).

There are 98 platinum-rated, 128 gold-rated, 10 silver-rated and four certified factories. Moreover, the highest-scoring factory is also from Bangladesh.

After the Rana Plaza collapse, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Workers’ Safety helped the country’s factories to improve their fire, structural and electrical safety measures.

The Alliance left the country in 2018 after remediating 93 per cent across 700 factories it inspected, and the Accord, which lasted until 2020, helped standardise fire and building safety in more than 2,000 RMG factories.

After their departure, the RMG Sustainability Council, an entity comprised of RMG manufacturers, global brands and retailers, and global unions and their Bangladeshi affiliates, started its journey in 2020.

Regarding the RSC, Hatem said that the entity was doing its job as per the global standard, but it also sometimes tried to put artificial pressures on the industry.

‘The biggest paradigm shift since Rana Plaza has been the safety culture that has been developed through public-private partnership in the factories,’ said Mohiuddin.

The BGMEA has also framed its new policy on new member enrolment and subcontracting, he said.

Despite facing crises like the Rana Plaza collapse, Covid pandemic and global economic turmoil due to the Russia-Ukraine war over the years, the RMG sector’s export earnings have never experienced a hard hit.

Bangladesh exported apparel worth $38.48 billion in 2024, a 7.23-per cent increase compared with $35.89 billion in 2023.

Talking to New Age, Nazma Akter, president of the Sommilito Garments Sromik Federation, said that the accused in the Rana Plaza case were yet to be punished and most of the accused were in hiding.

‘Accused Rana along with others must be brought to justice,’ she said.

‘The factory authorities are yet to regularise the remediation activities and the government should do it by maintaining global standard,’ she said.

She also said that safety issues had improved a lot, but this could not be called sustainability, as accidents and fire incidents were still persistent in the sector, along with the absence of earthquake safety.

In some cases, the blacklisting of workers is also persistent, she added, noting that owners had safe passage after committing crimes.

Regarding the cases, Hatem said they also demanded punishment of actual criminals.​

 

[Saif]

Can Bangladesh fend off Vietnam in RMG race?

Bangladesh's limited trade diplomacy, coupled with its slower shift towards value-added production, could allow Vietnam to surpass it in global rankings

www.thedailystar.net

Can Bangladesh fend off Vietnam in RMG race?

Bangladesh's status as the world's second-largest garment exporter has become increasingly precarious, driven by a confluence of global trade shifts, regional competition and structural inefficiencies at home.

The imposition of 37 percent tariffs by the Trump administration has only intensified the pressure on Bangladesh, prompting industry leaders and analysts to express concern over the country's ability to maintain its global standing.

The country now faces a decisive test of its export resilience and trade negotiation capacity. For a sector built on cost competitiveness and heavily dependent on price-sensitive markets, the tariff escalation poses a direct threat to a business model long anchored in low-wage labour.

Many industry leaders are monitoring Vietnam's ascent warily. Although Vietnam faces a steeper tariff -- 46 percent compared to Bangladesh's 37 percent -- there is growing concern that Bangladesh's limited trade diplomacy, coupled with its slower shift towards value-added production, could allow Vietnam to surpass it in global rankings.

"If we don't move fast, we will not be able to save the day," said Rubana Huq, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

In 2023, Bangladesh accounted for 7.4 percent of global apparel exports, valued at $38 billion, according to the World Trade Organization (WTO). Only China ranked higher, with $165 billion in exports and a commanding 31.6 percent market share. Vietnam followed closely, exporting $31 billion of garments and holding a 6 percent share.

These rankings, however, reflect 2023 performance. The WTO's 2024 data -- yet to be released -- may offer a clearer picture of shifting dynamics. Compounding concerns, the WTO revised Bangladesh's previously reported export figures downward by $9 billion due to discrepancies in data submitted by the Export Promotion Bureau, raising questions about statistical reliability.

Despite the correction, Bangladesh retains several structural strengths: a large and affordable labour force, robust backward linkages through its $25 billion primary textile sector, a global lead in certified green factories, and rising compliance with international safety standards.

But these are increasingly offset by entrenched weaknesses -- underdeveloped infrastructure, extended lead times, high borrowing costs, bureaucratic frictions and overreliance on low-value, basic garments.

What separates Bangladesh from competitors like Vietnam is not just cost structure but strategic direction. Vietnam has steadily moved up the value chain, diversifying its product base and leveraging free trade agreements to secure preferential access. With both countries subject to elevated tariffs in the US market, the decisive variable may be the ability to offer differentiated, value-added products and to navigate trade diplomacy with agility.

Without targeted reforms and meaningful trade engagement, Bangladesh's position in global supply chains risks being overtaken -- not through a sudden collapse, but by gradual erosion in competitiveness and missed opportunities.

Tapan Chowdhury, a garment exporter and managing director of Square Pharmaceuticals, acknowledged that Vietnam could eventually overtake Bangladesh if key structural challenges remain unaddressed. However, he believes Bangladesh retains its competitive edge -- at least for now.

"Given that the Trump administration set the tariff at 37 percent, Bangladesh retains its competitiveness since the effective tariff rate for Vietnam is nearly 10 percentage points higher in the same market," he said.

Tapan urged exporters to shift towards high-value products to withstand price pressures. "International retailers and brands always offer lower prices for basic items. Exporters must adopt the right strategies and be selective in choosing buyers to offset challenges."

Echoing the need for deeper reforms, Rubana Huq, also managing director of Mohammadi Group, said Bangladesh's growth narrative often overlooks entrenched problems.

While the potential of the apparel sector is widely recognised, Rubana warned that optimism alone is not enough. "Relying solely on the continued growth of basic garments is no longer a viable strategy," she said. The sector must diversify its product base, invest in technology upgrades, and develop a skilled workforce capable of adapting to global demand. She stressed the urgency of expanding capacity in man-made fibre (MMF) garments, where Bangladesh continues to lag behind competitors.

"Bangladesh will lose its competitive edge if we can't engage in active economic diplomacy," she warned, calling for stronger international engagement to secure favourable trade terms.

Faruque Hassan, managing director of Giant Group, raised another important distinction in the comparison with Vietnam. He said Vietnam's export statistics often include both garments and textiles, unlike Bangladesh, which reports garments only.

"For example, Vietnam last year reported more than $37 billion in combined textile and garment exports, which included several billion dollars worth of textiles," he said. "If we exclude garments from that equation, it will take more time for Vietnam to overtake Bangladesh."

Nonetheless, Hassan stressed the need for swift action. "We need to explore new markets, diversify both products and destinations, invest in technology, and produce more value-added garments. That must go hand-in-hand with improving customs services, port operations, gas supply, and utility services, and removing non-tariff barriers."

Other exporters remain more confident. Md Fazlul Hoque, managing director of Plummy Fashions Ltd, dismissed speculation that Vietnam is about to overtake Bangladesh.

"For years, people have been saying that Vietnam will surpass us, but that hasn't happened. Bangladesh remains competitive and continues to grow."

He added that rankings are less important than performance. "Meeting the market demand is how we can climb even higher."

Indeed, Bangladesh has maintained a strong presence in key markets. It is currently the second-largest apparel exporter to the EU, with annual shipments exceeding $25 billion, and ranks third in the US with yearly exports of over $8 billion. In Canada and select emerging markets, Bangladesh has also expanded its footprint significantly, with market share rising to more than 20 percent, double the level from five years ago.

Still, concerns over looming threats persist. Anwar-Ul-Alam Chowdhury, chairman of Evince Group, pointed to two immediate risks: Trump's tariffs and Bangladesh's upcoming graduation from least developed country (LDC) status, scheduled in November 2026.

He stressed the need for proactive diplomacy in addressing the US tariffs. "Bangladesh must address Trump's tariffs politically. And the government must take timely policy steps to offset the immediate impacts of LDC graduation."

Although countries like the EU, the UK, Canada, and Australia have pledged to extend duty-free access beyond 2026, Anwar-Ul-Alam argued that Bangladesh must not be complacent. He called for negotiating free trade agreements (FTAs) with major trading partners and enhancing engagement with Asian markets such as China, India, and Japan.

If positioned strategically, he noted, Bangladesh could attract new orders as sourcing patterns shift away from China and Vietnam under US tariff pressure. "But this will depend entirely on our diplomatic and strategic responses."

Mostafa Abid Khan, a former member of Bangladesh Trade and Tariff Commission, warned that even a 10 percent tariff burden could be difficult for many local exporters to absorb. He also flagged Vietnam's advantage under its free trade agreement with the EU, saying the Southeast Asian country continues to strengthen its foothold in the European market.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed this concern. "Under the EU-Vietnam FTA, Vietnam's exports to Europe are bound to rise. Its presence in the US and Canadian markets is also expanding."

Razzaque also pointed to a critical structural difference. Vietnam's rapid growth in the garment sector is driven largely by Chinese investment, reportedly $61 billion in textiles and garments. In contrast, Bangladesh's $55 billion textile and garment sector has less than 5 percent foreign investment.

"This is a relative advantage for Bangladesh," he said, suggesting that US buyers may be wary of Vietnam's deep production ties with China.

However, to seize any potential gains from declining Chinese exports, Bangladesh must address one key weakness: its limited capacity in MMF-based apparel, according to Razzaque. "Countries that wish to fill the gap left by China in the US market must be able to scale up MMF production."​

 

[Saif]

RMG orders adequate until Christmas

Local suppliers have secured adequate work orders from US clothing retailers and brands to stay busy until Christmas at the end of this year, although the shipments are likely to be subject to Trump’s reciprocal tariffs.

www.thedailystar.net

RMG orders adequate until Christmas
Exporters say

Local suppliers have secured adequate work orders from US clothing retailers and brands to stay busy until Christmas at the end of this year, although the shipments are likely to be subject to Trump's reciprocal tariffs.

The factories will start manufacturing garments in full swing for the Christmas season from June, and it will continue until the end of July.

The shipment of the goods to the US will start from August so that they can be sold in November and December.

The autumn and winter seasons, Christmas, and Thanksgiving are major sales seasons for garments in the Western world.

However, a majority of local garment exporters are still waiting for Trump's final decision on tariffs, as his administration has given a 90-day pause on the reciprocal tariffs on the countries concerned.

Regarding the next summer season's work orders, both suppliers and buyers are yet to hold negotiations to confirm their values and volumes, as retailers and brands are waiting for Trump's final decision.

Like other countries, the 10 percent baseline tariff is still in place for Bangladesh, except for the 145 percent tariff on the import of Chinese goods. Although Trump on Wednesday assured he would consider a substantial reduction of tariffs on Chinese goods, he made it clear it would not be to zero.

Bangladeshi garment suppliers are now busy holding negotiations on work orders to increase export volumes to Europe and other countries because of favourable or zero tariff rates for Bangladesh.

Bangladesh may face tough competition in other markets such as the European ones, as China and Vietnam will also try to grab bigger market shares to offset the probable reduction in shipments to the US due to the high tariffs imposed on them by the Trump administration.

The booking of orders until Christmas was confirmed by Abdullah Hil Rakib, managing director of TEAM Group, which exported $560 million worth of garments last calendar year, about 25 percent of which were destined for the US.

"So, I am not worried about the next Christmas shipment," Rakib told The Daily Star over the phone.

He also said that over the last few years, he has been increasing garment exports to the US but might have to conduct reviews due to the high tariffs that have been proposed.

Rakib is hopeful that garment exports to the US from Bangladesh will increase further because of the high tariffs imposed on products from China and Vietnam.

He said that after Trump's tariffs were announced, a US-focused retailer came to his factory.

The retailer was planning to shift work orders from China to his factory as the tariff on Chinese goods is very high at 145 percent, and the effective rate on Bangladesh was 26 percent, including a previous 16 percent and a 10 percent baseline tariff.

Rakib is hopeful that US buyers will ultimately come to Bangladesh for sourcing garments as the tariff on products from China and Vietnam—two global giants in garment production—is higher than that on products from Bangladesh.

On the other hand, the tariff on Indian goods is lower than that on Bangladeshi products, but India does not have high manufacturing capacity.

Moreover, Pakistan will face lower tariffs than Bangladesh, but its product varieties are not as diversified as those of the latter, he said.

Shovon Islam, managing director of Sparrow Apparels Ltd, which annually exports garments worth $300 million, about 50 percent of which end up in the US, said some of his buyers were demanding that he bear half of the 10 percent baseline tariff.

However, in garment manufacturing, 70 percent is spent on fabrics, which the manufacturers import to make the garments.

He also said he would have to ship all the goods by mid-September to his US buyers so that the goods could be sold during the Christmas season.

He has received 10 percent fewer work orders year-on-year from his US buyers this season because of the Trump tariffs.

Syed M Tanvir, managing director of Pacific Jeans, said he was still holding negotiations with his US buyers over the Christmas shipments.

"My US buyers neither cancelled nor increased the work orders and also did not seek any discount from me," said a Rupganj-based garment exporter asking not to be named.

Some 40 percent of his yearly exports go to the USA.

But at the same time, it is also not clear what the buyers will do after August, as they are also in a wait-and-see approach now because of the 90-day pause in tariffs, he said.

By June this year, the buyers will be able to confirm work orders for the next season, the exporter also said.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the buyers may offer lower prices because of the high tariffs, but the exporters would have to stay positive and strong in negotiations.

Currently, more than 900 local garment factories send apparel to the US, and nearly 25 factories have a high concentration on the American markets.

Bangladesh is the third-largest garment exporter to the US after China and Vietnam, and accounts for 9.3 percent of the over $100 billion worth of garments it imports in a year.​

 

[Saif]

Apparel exports to EU witness robust 37pc growth in Jan-Feb

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 37-percent growth during January-February period of 2025, staying ahead of the major competitors like China, Vietnam, Turkey, and India. Apparel exports to the EU market during the first two months of this year fet

thefinancialexpress.com.bd

Apparel exports to EU witness robust 37pc growth in Jan-Feb
FE Report
Published :
Apr 27, 2025 00:10
Updated :
Apr 27, 2025 00:10

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 37-percent growth during January-February period of 2025, staying ahead of the major competitors like China, Vietnam, Turkey, and India.

Apparel exports to the EU market during the first two months of this year fetched US$ 3.69 billion, compared to US$ 2.69 billion earned in the same period of last year, according to data compiled by BGMEA based on Eurostat, the statistical office of the EU.

Exporters have attributed the rise to a number of factors, including rising global demand, shift of work orders from China, and duty-free market access, while local reasons are competitive pricing, enhanced capacity, efficiency, productivity, workplace-safety compliance, and the production of quality goods.

The developments during the last several years, enhanced buyers' confidence and trust, and good business environment have also helped boost the country's main export trade.

The EU's total apparel imports in January-February of 2025 stood at US$16.09 billion, 17.81 per cent higher than US$ 13.66 billion logged in the corresponding months last year, the data revealed.

Among Bangladesh's main competitors, China recorded a 25.12-percent growth during January-February period of 2025, while India, Pakistan, and Cambodia witnessed double-digit growth of 25.60 per cent, 29.65 per cent, and 41 per cent, respectively.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former director Mohiuddin Rubel said Bangladesh's apparel exports to the EU experienced remarkable growth both in value and volume.

The RMG exports in January-February 2025 grew remarkably by 36.99 per cent supported by a strong 39.02 per cent increase in volume.

However, a decrease of 1.46 per cent in unit price underscored the challenges of maintaining profitability, he noted.

He also attributed several factors that contributed to this positive export trend, including value-added garment production, the EU's economic recovery, duty-free market access, adherence to safety standards, and collaborative efforts of manufacturers and workers.

Looking ahead, the outlook remains optimistic with an expected increase in work orders throughout 2025, sustaining growth momentum, he added.

As buyers expand their sourcing activities in Bangladesh, the growth trajectory is expected to continue, especially amidst rising tensions between the US and other countries, he added.

Meanwhile, the BGMEA data showed that China's apparel exports to the EU reached US$4.54 billion, up from US$3.63 billion in January-February 2024.

However, Turkey faced a 3.64-percent decrease in apparel exports to the EU, amounting to US$1.61 billion during January-February period of 2025.

Vietnam recorded a 16.58-percent growth, reaching US$759 million exports.

India, Pakistan, and Cambodia fetched US$865.18 million, US$710.65 million, and US$775.11 million respectively during January-February period of 2025 from clothing exports to the EU.

Mr Rubel added that data highlighted the necessity for strategic adaptations to foster future growth.

"Despite Bangladesh's resilience in upholding export levels both in quantity and value, there is a clear imperative for the country to sustain its competitive edge and enhance profit margins amidst persistent global price declines," he noted.

Key factors such as value addition and expanding market reach remain pivotal for Bangladesh's economic sustainability and prosperity, he further said.

In the meantime, RMG exports to the United States, the single-largest destination for Bangladesh, grew by 26.64 per cent to US$1.50 billion during the January-February period of 2025 which was US$1.18 billion in the corresponding period of 2024, according to the data by OTEXA, an affiliate of the US Department of Commerce.​

 

[Bilal9]

January-February RMG exports to US up 26.64pc​

Apparel exports to the United States, the single-largest market for made-in-Bangladesh clothing, sustained double-digit growth during the first two months of 2025.

Bangladesh fetched $1.50 billion from the US market during the January-February period of 2025, marking 26.64 per cent growth from $1.18 billion in the corresponding period of 2024, according to the data by OTEXA, an affiliate of the US Department of Commerce.

The data was released on Thursday, a day after the US imposed 37 per cent tariffs on Bangladeshi goods.

Readymade garment (RMG) exports to the US, which bounced back strongly in January, saw 45.9 per cent growth and fetched $799.65 million that month, which was $547.95 million in the same month of 2024.

However, exports may face a blow due to the new tariff imposition by the US.

In terms of quantity, Bangladesh shipped 488.27 million square metres of apparel to the US market in the January-February period of 2025, marking 23.38 per cent growth from 395.74 million square metres in the corresponding period of 2024, the OTEXA data shows.

Industry experts say January and February are unusual months and attributed the export rise to the likely attempts by importers to clear shipments before the Trump administration imposed higher tariffs.

The growth in Bangladesh's RMG exports to the US in January and February of this year outpaced that of all other major suppliers, including India at 25.70 per cent, Pakistan at 23.05 per cent, Vietnam at 11.14 per cent, and China at 8.85 per cent.

Despite the global economic challenges, Bangladeshi products' competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices contributed to the robust rebound, exporters said.

But the competitiveness may erode in the coming months due to the US tariff hike. Bangladesh may lose competitiveness to India and Pakistan, which face lower tariffs of 26 per cent and 29 per cent, respectively, they observed.

According to the OTEXA data, Bangladesh's RMG export earnings from the US market were $7.34 billion in 2024 and $7.28 billion in 2023. In 2022, clothing exports to the US hit an all-time high of $9.73 billion.

Amid the slow growth last year, Bangladesh's apparel export share in the US market fell to 9.26 per cent in 2024, which was 9.7 per cent in 2022.

The rise in exports from countries like Indonesia, India, Pakistan, and Cambodia in 2025 indicates that US buyers are diversifying their sourcing, influenced by competitive costs and geopolitical considerations.

On the other hand, China's slower growth, which economists and exporters apprehend would slow further, indicates shifting dynamics in global sourcing patterns, while factors such as trade policies, production costs, and sustainability requirements continue to shape these trends.

When asked, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said importers may have made early shipments to have a good stock fearing possible tariff hikes so that they can immediately adjust during a crisis period.

The US market that started getting better after a long time of weaker position may face a decline in demand because of the new tariffs, which would raise the prices of garment items, he said.

This means the US consumers would purchase less, resulting in a squeezed market, Hoque noted, adding that the new tariffs may not sustain.

Exporters say Bangladesh needs to address its internal issues, including energy crisis, high cost of production, high bank interest rate, and other complexities, to sustain its competitiveness amid the possible volatile global trade war situation.

However, experts and economists think the new tariffs imposed by the US may not bring any major change in market competition as similar tariffs have been imposed on other garment-producing countries at various rates, with some of them facing higher rates like Vietnam and Cambodia.

Besides, they apprehend a possible global trade war that would result in economic recession and affect almost all exporting countries.

According to some exporters, while Vietnam is doing ever so well in the US market and the new tariffs may affect its growth, India will be a new concern and challenge for Bangladesh as the next-door neighbour is shipping higher volumes of apparel to America, offering lower prices by banking on its own raw materials.

Now India would be in an advantageous position with a low 26 per cent tariff, they said.

Talking to The Financial Express, Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh's exports to the US would fall by at least 25 per cent in the near future.

"Eventually, we will lose to India and Pakistan in general. Also, we will lose to Jordan and Egypt in the higher value-added knit categories," she noted.

Turkey will also be a competitive sourcing hub considering its low tariff as it only has a 10 per cent reciprocal tariff, she added.

According to OTEXA, India received $955.50 million by shipping 263.87 million square metres of apparel to the US in the first two months of 2025. In terms of quantity, the shipments were 31.91 per cent higher compared to that in the same months of 2024.

Vietnam's apparel exports to the US in the period under review fetched $2.62 billion, recording 11.14 per cent growth. It recorded 7.25 per cent growth in terms of quantity as the US imported 753.44 million square metres of garment from the country.

Meanwhile, China recorded 8.85 per cent growth and fetched $2.77 billion during the period. It shipped 1.52 billion square metres of apparel to the US, marking 5.78 per cent growth.

The overall US apparel imports during the first two months of 2025 marked 11.21 per cent year-on-year growth to $13.55 billion.

 

[Bilal9]

Bangladesh poised to become top global apparel exporter: Kihak Sung​

The founder of Korean EPZ praises the steps taken by the chief adviser

Bangladesh is poised to climb to the number one spot in garment exports with the right strategies and reforms, said Kihak Sung, founder of the Korean Export Processing Zone.

"Bangladesh currently holds the position of the world's second-largest apparel exporter as a single country," he said today while speaking as the keynote speaker at a session of the Bangladesh Investment Summit 2025.

He delivered a presentation titled "Bangladesh Moving Forward: Through an Investor's Lens" at the session on "Textile and Apparel" at the InterContinental Dhaka hotel.

To achieve the target of reaching the top position, he said Bangladesh must enhance its use of technology, improve workers' skills, and establish its own production facilities for man-made fibres.

He also highlighted the importance of policy support and the need for a greater number of bonded warehouses.

"These will enable quicker access to raw materials, allowing manufacturers to produce and export finished goods more efficiently," he added.

Commenting on recent trade developments, Sung said, "The three-month suspension of the Trump-era tariff policy brings some relief. The Bangladesh government's proactive measures in this regard are commendable."

Looking ahead, he stressed the need for value-added production.

"We must focus on producing high-value garments; otherwise, it will become increasingly difficult to remain competitive in the global market," he warned.

Anwar Hossain, administrator of the Bangladesh Garment Manufacturers and Exporters Association and vice-chairman of the Export Promotion Bureau, also spoke at the event.

 

[Saif]

50pc reduction in Indian yarn imports to create 500k jobs in Bangladesh: BTMA president

President of the Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that around 500,000 new jobs will be created in the country if Indian yarn imports reduce to 50 per cent. He said this while speaking at a seminar on 'Sustainable Sourcing Seminar of Cotton', organised jointly b

thefinancialexpress.com.bd

50pc reduction in Indian yarn imports to create 500k jobs in Bangladesh: BTMA president
UNB
Published :
Apr 29, 2025 22:26
Updated :
Apr 29, 2025 22:26

President of the Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that around 500,000 new jobs will be created in the country if Indian yarn imports reduce to 50 per cent.

He said this while speaking at a seminar on 'Sustainable Sourcing Seminar of Cotton', organised jointly by Cotton USA and BTMA, held at the Basundhara Convention Centre on Tuesday evening.

Criticising businesses, he said those who are giving opinions in the media that local fabric production is adversely affected by the halt on Indian yarn imports through land ports, he said they are not on the side of the growth of the domestic economy.

The BTMA president said that Indian clothes are imported by paying duty on the prices of clothes, not the weight or KG rate, which is harmful for domestic industries.

He mentioned a report of The Hindu,which mentioned that 45 per cent Indian yarn exported to Bangladesh.

He urged Bangladeshi businesses to keep patient and make policies to favour the country, not favour neighbouring countries.

He said that the immediate past government made a policy to privilege the neighbours, but they could not do any favour from India, so the precious import policy could not be run in Bangladesh now.

He blamed that India was sucking the blood out of Bangladesh's economy, which has to be changed in every sector.

Tracey Ann Jacobson, Charge d'affaires, U.S. Embassy-Bangladesh said the USA is producing the best quality cotton, and the USA can be a sustainable cotton source for Bangladesh.

The USA sought sustainable industrial growth with US collaboration and strong partnerships with businesses, she said.

Ali Arsalan, Representative for Bangladesh, Cotton Council International (CCI), Daniel Wong, of CCI, William Bettendorf Regional Director-South Asia,

Shahana Akter Kiron, Vice President - Head of Customer Engagement, Textile Genesis, Azeezur Rahman Khan,

Country Development Representative, The Woolmark Company, Prof. Muhammad Tausif, Cotton Council International, Technical Consultant, Zoe Keay,

Vice President Sales, Oritain, Daren Abney, Executive Director, U.S. Cotton Trust Protocol have participated in 7 paper presentations in the seminar.

The presentation highlighted the potential of the US cotton market, cotton technol technologies, market survey, cotton tracing system, marketing and supply chain issues.

A number of businesses of Bangladesh and representatives of different US brands were present in the seminar.

Bangladesh imports US cotton as part of its large RMG industry, but faces challenges including concerns about logistics and lengthy shipment times.

BTMA has been advocating for duty-free access to the US market for garments made from US cotton, seeking to further boost this trade. While Bangladesh is a significant importer of US cotton, it's also seeking to diversify its sourcing and increase domestic cotton production.

These issues were also discussed in the seminar.​

 

[Bilal9]

50pc reduction in Indian yarn imports to create 500k jobs in Bangladesh: BTMA president

President of the Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that around 500,000 new jobs will be created in the country if Indian yarn imports reduce to 50 per cent. He said this while speaking at a seminar on 'Sustainable Sourcing Seminar of Cotton', organised jointly b

thefinancialexpress.com.bd

50pc reduction in Indian yarn imports to create 500k jobs in Bangladesh: BTMA president
UNB
Published :
Apr 29, 2025 22:26
Updated :
Apr 29, 2025 22:26

View attachment 16962

President of the Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that around 500,000 new jobs will be created in the country if Indian yarn imports reduce to 50 per cent.

He said this while speaking at a seminar on 'Sustainable Sourcing Seminar of Cotton', organised jointly by Cotton USA and BTMA, held at the Basundhara Convention Centre on Tuesday evening.

Criticising businesses, he said those who are giving opinions in the media that local fabric production is adversely affected by the halt on Indian yarn imports through land ports, he said they are not on the side of the growth of the domestic economy.

The BTMA president said that Indian clothes are imported by paying duty on the prices of clothes, not the weight or KG rate, which is harmful for domestic industries.

He mentioned a report of The Hindu,which mentioned that 45 per cent Indian yarn exported to Bangladesh.

He urged Bangladeshi businesses to keep patient and make policies to favour the country, not favour neighbouring countries.

He said that the immediate past government made a policy to privilege the neighbours, but they could not do any favour from India, so the precious import policy could not be run in Bangladesh now.

He blamed that India was sucking the blood out of Bangladesh's economy, which has to be changed in every sector.

Tracey Ann Jacobson, Charge d'affaires, U.S. Embassy-Bangladesh said the USA is producing the best quality cotton, and the USA can be a sustainable cotton source for Bangladesh.

The USA sought sustainable industrial growth with US collaboration and strong partnerships with businesses, she said.

Ali Arsalan, Representative for Bangladesh, Cotton Council International (CCI), Daniel Wong, of CCI, William Bettendorf Regional Director-South Asia,

Shahana Akter Kiron, Vice President - Head of Customer Engagement, Textile Genesis, Azeezur Rahman Khan,

Country Development Representative, The Woolmark Company, Prof. Muhammad Tausif, Cotton Council International, Technical Consultant, Zoe Keay,

Vice President Sales, Oritain, Daren Abney, Executive Director, U.S. Cotton Trust Protocol have participated in 7 paper presentations in the seminar.

The presentation highlighted the potential of the US cotton market, cotton technol technologies, market survey, cotton tracing system, marketing and supply chain issues.

A number of businesses of Bangladesh and representatives of different US brands were present in the seminar.

Bangladesh imports US cotton as part of its large RMG industry, but faces challenges including concerns about logistics and lengthy shipment times.

BTMA has been advocating for duty-free access to the US market for garments made from US cotton, seeking to further boost this trade. While Bangladesh is a significant importer of US cotton, it's also seeking to diversify its sourcing and increase domestic cotton production.

These issues were also discussed in the seminar.​

Best news I have heard since August 2024 !

Masha 'Allah !

 

[Saif]

India-Pakistan conflict will affect businesses of neighbouring countries: BKMEA President

The Progressive Knit Alliance, led by Mohammad Hatem, has announced its 15-point election manifesto for the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) elections for 2025-27. The manifesto was released at a press conference held at a hotel in the capital on Wednesday, UNB r

thefinancialexpress.com.bd

India-Pakistan conflict will affect businesses of neighbouring countries: BKMEA President
Published :
May 07, 2025 21:39
Updated :
May 07, 2025 22:41

The Progressive Knit Alliance, led by Mohammad Hatem, has announced its 15-point election manifesto for the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) elections for 2025-27.

The manifesto was released at a press conference held at a hotel in the capital on Wednesday, UNB reports.

During unveiling the manifesto, Hatem, president of knitwear industry owners' organisation BKMEA, said that a war between India and Pakistan will not only have adverse effects on the two countries but also on neighbouring countries.

He said, "Just as the country concerned is affected when a war breaks out, so are the neighbouring countries. Bordering countries like ours will also be affected economically."

He further said, "We have to import various raw materials including yarn and cloth. In a war situation, import and export will be disrupted, which will directly affect our industry. As a result, we will also face losses in various ways."

In this situation, he called on the concerned countries to avoid tension and come to a peaceful solution.

The manifesto has called for effective steps to be taken through discussions with the National Board of Revenue (NBR) to ease import and export by removing customs complications. Among these, it has been promised to resolve the complexity of HS Code, remove all obstacles in the import of raw materials and export of goods, simplify the import availability and use method of composite units, remove the complexity of raw material supply from bonded to non-bonded companies and take steps to resolve the ongoing problems of the Bond Commissionerate.

In addition, it has been said to force non-bonded companies to obtain bond licenses and thereby remove obstacles to exports.

The manifesto calls for discussions with the NBR to stop VAT harassment of export-oriented industries. Taxation system.​

 

[Saif]

Shipments to USA jump on both counts

Bangladesh's apparel exports to the United States, its single-largest market, recorded a double-digit growth both in value and volume during the first quarter of 2025. The country's readymade-garment exports fetched US$2.22 billion from the US market during the January-March period of 2025, markin

thefinancialexpress.com.bd

Robust garment export in Q1/2025
Shipments to USA jump on both counts
Annualised 26.66pc rise fetches BD $2.22b in 3 months
Monira Munni
Published :
May 08, 2025 01:33
Updated :
May 08, 2025 01:33

inset-p1-1Bangladesh's apparel exports to the United States, its single-largest market, recorded a double-digit growth both in value and volume during the first quarter of 2025.

The country's readymade-garment exports fetched US$2.22 billion from the US market during the January-March period of 2025, marking 26.66-percent growth from US$1.75 billion in the corresponding period of 2024, according to the data released on Tuesday by OTEXA, an affiliate of the US Department of Commerce.

In terms of quantity, shipments came to 733.98 million square metres of apparel in a 25.24-percent growth over 586.04 million square metres in the corresponding period of 2024.

Industry experts attributed export rise to the improved US market and the likely attempts by importers to clear shipments before the Trump administration imposed higher tariffs.

The growth in Bangladesh's RMG exports to the US in January-March this year outpaced that of all other major suppliers, including India at 24.04 per cent, Indonesia at 20 per cent, Pakistan 17.51 per cent, Vietnam 13.98 per cent, and China at 4.11 per cent.


Vietnam, however, surpassed China and earned US$3.87 billion during the first quarter of 2025. The US imported apparel worth of US$3.59 billion from China during the period, according to OTEXA data.

Despite the global economic challenges, Bangladeshi products' competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices contributed to such robust performance, exporters said.

Talking to the FE, a number of exporters opined that Bangladesh could be one of the major beneficiaries of the trade-and tariff wars between the US and China provided local issues were addressed and required strategic-policy support given.

Exporters are divided in opinions about eroding competitiveness in the coming months due to the US tariff hike. Some opine that Bangladesh may lose competitiveness to India and Pakistan, which face lower tariffs of 26 per cent and 29 per cent, respectively, than Bangladesh's 37 per cent, while others believe Bangladesh might not be affected significantly.

According to the OTEXA data, Bangladesh's RMG-export earnings from the US market were $7.34 billion in 2024 and $7.28 billion in 2023. In 2022, clothing exports to the US hit an all-time high of $9.73 billion.

Amid the slow growth last year, Bangladesh's apparel-export share in the US market fell to 9.26 per cent in 2024, which was 9.7 per cent in 2022.


The rise in exports from countries like Indonesia, India, Pakistan, and Cambodia in 2025 indicates US buyers are diversifying their sourcing, influenced by competitive costs and geopolitical considerations.

On the other hand, China's slower growth, which economists and exporters apprehend would slow further, indicates shifting dynamics in global sourcing patterns, while factors such as trade policies, production costs, and sustainability requirements continue to shape these trends.

Asked about the trade trends, Mahmud Hasan Khan, managing director of Rising Group, said the shipments were made before the imposition of the new US tariffs and demands from US were increasing on the back of its improved economy.

"Besides, there has been an anti-China move that encourages US buyers to source from alternative destinations, including Bangladesh, Indonesia, Pakistan, Vietnam and Cambodia," he says.

After the imposition of the jacked-up US tariff regime, the country that could offer better option would perform better, he predicts, adding that importers may have made early shipments to have a good stock of basic items fearing possible tariff hikes so that they can immediately adjust during a crisis period.

Mr Khan, also a former leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), thinks the main concern is the 'uncertainty' as none is sure what is going to happen.


Talking to the FE, Abdullah Hil Rakib, managing director of Team Group, said the flow of work orders from the US is good and local manufacturers are also focusing more on manmade fibre on the cusp of transition in clothing.

"Bangladesh has the opportunity to take back the opportunity provided with required policy supports like tax rebates and others," he said, adding that government should redesign the incentives and provide for MMF-garment making to encourage both local and foreign investments.

Exporters say Bangladesh needs to address its internal issues, including energy crisis, high cost of production, high bank interest rates, and other complexities, to sustain its competitiveness amid the possible volatile global trade-war situation.

However, they think the new tariffs imposed by the US may not bring any major change in market competition as similar flat rate of additional 10-percent tariffs, except China, has been imposed for 90 days.

Besides, they apprehend a possible global trade war that would result in economic recession and affect almost all exporting countries.

According to some exporters, while Vietnam is doing ever so well on the US market and the new tariffs may affect its growth, India will be a new concern and challenge for Bangladesh as the next-door neighbour is shipping higher volumes of apparel to America, offering lower prices by banking on its own raw materials.


Mr Rakib, however, notes that Vietnam is facing labour shortage while India and Cambodia don't have the capacity to compete with Bangladesh.

According to OTEXA, India received $1.50 billion by shipping 417.88 million square metres of apparel to the US in the first three months of 2025. In terms of quantity, the shipments were 27.17-percent higher compared to that in the same months of 2024.

The overall US apparel imports during the first three months of 2025 marked 10.96-percent year-on-year growth to $20.04 billion.​

 

[Saif]

Garment export to EU may face cutthroat competition

Bangladesh's readymade garment (RMG) export to its largest destination may face tough competition as competitors like China, Vietnam, Cambodia, Pakistan and Sri Lanka have incrementally raised their concentration in the European Union (EU) for a decade, sources say. The trade race may intensify

thefinancialexpress.com.bd

Garment export to EU may face cutthroat competition
New US tariff regime likely to intensify trade race further: Experts
Monira Munni
Published :
May 09, 2025 00:44
Updated :
May 09, 2025 00:44

Bangladesh's readymade garment (RMG) export to its largest destination may face tough competition as competitors like China, Vietnam, Cambodia, Pakistan and Sri Lanka have incrementally raised their concentration in the European Union (EU) for a decade, sources say.

The trade race may intensify further in the days ahead, especially following the new US tariff regime, as the reciprocal tariffs on higher scales may force the players to diversify their shipment destinations to the 27-nation bloc.

Data analysis shows 56 per cent of China's total apparel exports were destined for the EU in 2012, which edged up to 68 per cent in 2023. The figure was 44 per cent for the US in 2012, which decreased to 32 per cent in 2023.

About 32 per cent of Vietnam's total apparel was shipped to the EU in 2023--an increase from 26 per cent in 2012. The US accounted for 68 per cent in 2023, which was 74 per cent in 2012, according to data.

Cambodia's overall apparel shipments to the EU came to 63 per cent in 2023, which was 40 per cent in 2012. On the other hand, 60 per cent of its apparel was destined for the US in 2012, which fell to 37 per cent in 2023, according to latest data.

Similarly, 52 per cent of Pakistan's total apparel exports went to the EU in 2012, which rose to 71 per cent in 2023. Some 48 per cent of its total apparel exports were shipped to the US market in 2012, which fell to 29 per cent in 2023.

Sri Lanka's apparel exports were 46 per cent to the EU and 54 per cent to the US in 2012, which stood at 57 per cent to the EU and 43 per cent to the US in 2023.

Only India is an exception as 42 per cent and 58 per cent of its total garment exports were destined for the EU and the United States, respectively, in 2023, which was 48 per cent to the EU and 52 per cent to the US in 2012.

On the other hand, the EU accounted for 79 per cent of Bangladesh's total readymade garment (RMG) exports in 2023, up from 72 per cent in 2012. About 21 per cent of the total RMG was shipped to the US in 2023, which was 28 per cent in 2012.

Talking to The Financial Express, Dr Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the greater concern lies beyond the US market. "Constrained by American tariffs, supplies may be diverted to other key destinations, such as the EU, Japan, and Canada."

With Bangladesh holding more than 20-percent share in the EU apparel market, this diversion could intensify price competition, squeezing margins and undermining profitability, he also predicts.

"Compounding these pressures is the risk of competitive currency devaluations among export-reliant economies, as countries seek to counteract the loss in price competitiveness," Dr Razzaque explains.

For Bangladesh, which is already contending with foreign-exchange shortages and inflationary stress, such developments could deepen macroeconomic vulnerabilities and complicate efforts toward external and fiscal stabilisation, the economist adds.

When asked, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said competition would increase on the existing market not only for foreign competitors but also for local exporters.

Local exporters who ship goods to the US may shift to other countries, especially to the EU, which would intensify the competition within the borders, he notes, fearing "unhealthy price competition" among local exporters to linger.

The situation would be "terrific" if the same trend is followed by other garment-producing countries, resulting in "price pressure" as the market size of the importing countries, like the EU, remains the same, he explains.

Abdullah Hil Rakib, managing director of Team Group, says business shifting from the US would go to the EU, slowing the latter's existing business and it would be for the US tariff hike.

"The situation will be concerning as there would be huge price pressure," says Mr Rakib, also a former leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mahmud Hasan Khan, managing director of Rising Group, thinks the likely outcome is a sharp drop in demand on the US market, with severe consequences for the exporting countries.

He also echoes Mr Hoque' views about the price pressure, raising questions as to whether local exporters would get the same volume of work orders that they are receiving.

Meanwhile, exporters have said they are not getting fair prices of locally-made garments, and in many cases, they accept work orders below their production costs mainly to run the business and pay workers.

According to BGMEA data, Bangladesh's apparel shipments to the EU rose by 4.86 per cent year on year to $19.77 billion in 2024.

In 2024, Bangladesh exported 1.23 billion kilograms of garments to the EU, up by 10.18 per cent from 1.10 billion kg shipped in 2023.

The per-unit price fell to $16.07 per kg in 2024 from $16.88 per kg in the previous year, marking a 4.84-percent decline.

Though the EU's overall apparel imports increased 1.53 per cent year on year in terms of value to reach $92.56 billion in 2024, the import volume grew 8.98 per cent to 4.27 billion kg, resulting in a 6.83-percent decline in average unit prices, impacting major sourcing countries, including Bangladesh.​

 

[Saif]

RMG exports to US soar by 26.66pc in Jan-Mar

The country’s readymade garment exports to the United States, Bangladesh’s single largest export destination, witnessed a growth of 26.66 per cent in January-March period of 2025 to $2.22 billion, amid fears of tariffs imposed by the US.

www.newagebd.net

RMG exports to US soar by 26.66pc in Jan-Mar
Staff Correspondent 09 May, 2025, 23:15

The country’s readymade garment exports to the United States, Bangladesh’s single largest export destination, witnessed a growth of 26.66 per cent in January-March period of 2025 to $2.22 billion, amid fears of tariffs imposed by the US.

According to the latest data published by the Office of Textiles and Apparel, Bangladeshi exporters exported RMG items worth $1.55 billion in the corresponding period of 2024.

During the first quarter of 2025, Bangladesh outpaced its major competitors in terms of export growth rates.

In the first three months of 2025, the North American country’s RMG imports from its global suppliers increased by 10.96 per cent to $20.04 billion, compared with those of $18.06 billion in the same period of 2024.

In terms of volume, Bangladeshi RMG exports to the US in January-March of 2025 saw a positive growth of 25.24 per cent to 733.99 million square metres from that of 586.04 million square metre in the same period of 2024, Otexa data stated.

Bangladesh’s market share in the North American country stood at 9.61 per cent in the first quarter of 2025.

According to the Otexa data, amid the ongoing trade war between the US and China, Vietnam outperformed China as the highest exporter to the US in the first quarter of 2025, while China slipped to the second place.

Among the major suppliers, US apparel imports from Vietnam experienced a positive growth of 13.98 per cent to $3.88 billion in January-March, from that of $3.4 billion in 2024. Vietnam held a market share of 19.2 per cent.

The Otexa data stated that China exported apparel items worth $3.60 billion in the reporting period, a positive growth of 4.11 per cent from that of $3.45 billion in the same period of 2024, claiming a market share of 20.50 per cent.

Followed by Bangladesh, India secured the fourth position by exporting apparel items worth $1.51 billion in January-March of 2025, registering a positive growth of 24.04 per cent compared with that of $1.22 billion in the same period of 2024, with a market share of 6.13 per cent in the US.

According to the data, the US’ RMG imports from Indonesia surged by 20 per cent to $1.23 billion. In comparison, RMG imports from Cambodia increased by 14.70 per cent to $927.09 million in the same period. This made Indonesia and Cambodia hold the fifth and sixth place respectively with a market share of 5.48 per cent and 4.83 per cent.

However, the country’s RMG manufacturers are still concerned about the US’ 37 per cent tariff imposition on all Bangladeshi exporting products, though it has been paused for 90 days.

They said that the 90-day pause was not a permanent or sustainable solution and the government should take immediate action through diplomatic channels to resolve the issue before 90 days.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that the country must narrow trade imbalance to protect exporters from the US tariff.

However, he said, the abnormal imposition of tariffs on Chinese products accelerated the shifting of work orders to Bangladesh, impacting US exports.

Mohiuddin Rubel, a former Bangladesh Garment Manufacturers and Exporters Association director, said that China’s export growth to the US lagged behind during the period and Bangladesh might have captured a share of China’s declining orders.

He, however, said that the impacts of the new US trade policies were yet to unfold and urged the government to take proper actions.

According to the Otexa data, Bangladesh’s apparel exports to the US in 2024 saw a marginal 0.75 per cent growth to reach $7.34 billion compared with those of $7.29 billion in 2023 amid fluctuations in shipments throughout the year.​

 

[Saif]

EU competition major challenge before garment sector

Bangladesh's ready-made garment sector, the backbone of its export economy, faces its most severe challenge in decades. The impending 37 per cent US tariff, set to take effect after June 9, 2025, would be damaging enough on its own. But the greater threat lies in Europe where 79 per cent of Banglad

thefinancialexpress.com.bd

EU competition major challenge before garment sector
Published :
May 11, 2025 00:06
Updated :
May 11, 2025 00:06

Bangladesh's ready-made garment sector, the backbone of its export economy, faces its most severe challenge in decades. The impending 37 per cent US tariff, set to take effect after June 9, 2025, would be damaging enough on its own. But the greater threat lies in Europe where 79 per cent of Bangladesh's RMG exports currently go. As competitors like China, Vietnam and Cambodia face similar US tariff pressures, they are inevitably turning to the EU market as their alternative destination. This is bad news for Bangladesh. Just as its US market access shrinks, its primary export destination faces a flurry of competitors vying for market share. The EU's importance cannot be overstated as it absorbs nearly four times more Bangladeshi garments than the US market. What was once Bangladesh's safe harbour is about to become its most contested battleground.

The warning signs of growing competition have been visible for years. As reported in this daily, between 2012-2023, China increased its EU apparel share from 56 per cent to 68 per cent, Vietnam from 26 per cent to 32 per cent and Cambodia made the most dramatic leap from 40 per cent to 63 per cent. These weren't random fluctuations but strategic shifts by countries preparing for exactly this scenario. Now, with the US effectively closing its doors to affordable garments through punitive tariffs, these countries have no choice but to redouble their efforts to catch European market. Unfortunately for Bangladesh, which relies heavily on EU market access for foreign currency earnings, this surge in competition could be devastating. The real threat now lies not just in losing the US market, but in losing ground in Europe.

What follows is an intense race to the bottom. Greater competition means thinner margins and thinner margins threaten the sustainability of the entire sector. The pressure is already evident in the declining per-kg price of Bangladeshi garments in the EU which reportedly dropped by 4.84 per cent over the past year. This decline indicates that exporters are being forced to sell more at lower prices just to stay in the game, and as the competition becomes more severe, the price will fall further. Experts also warn of competitive currency devaluations where export-dependent economies may artificially devalue their currency in order to stay price-competitive. Meanwhile, Bangladesh's impending graduation from Least Developed Country (LDC) status in 2026 will strip away its duty-free EU access at the worst possible time. The irony is that Cambodia, one of Bangladesh's competitors in the RMG exports, will retain these privileges as it remains an LDC. That gives Cambodia a distinct edge just when Bangladesh's competitiveness is set to weaken.

So what can Bangladesh do to navigate this increasingly treacherous trade environment? The first task is to address the US market. No visible progress has been made in reaching a trade understanding with the US in the two months of tariff pause that elapsed. Given that the US rationale for tariffs is the export-import imbalance, Bangladesh needs to urgently identify potential imports from the US to build a more balanced trade relationship. For the EU, Bangladesh must secure a new trade agreement before LDC graduation, following the model of Vietnam's EU FTA. Simultaneously, Bangladesh must actively diversify its export destinations beyond the traditional strongholds of the EU and the US. Countries like Japan, Canada and emerging markets offer potential avenues and should be actively cultivated. Most critically, Bangladesh needs a export strategy on a war footing involving all stakeholders, from government to manufacturers to trade bodies. Without swift, strategic action, Bangladesh risks losing its position it has built in the global apparel trade through decades of effort.​

 

[Saif]

Denim exports to US, EU up 56pc, 32pc

Locally-made denim items' exports to the two major destinations - the US and the European Union (EU) - during the first two months of 2025 witnessed significant growth of over 56 per cent and more than 32 per cent, respectively. Bangladesh fetched $138.75 million from denim exports to the

thefinancialexpress.com.bd

Denim exports to US, EU up 56pc, 32pc
Monira Munni
Published :
May 13, 2025 00:36
Updated :
May 13, 2025 00:36

Locally-made denim items' exports to the two major destinations - the US and the European Union (EU) - during the first two months of 2025 witnessed significant growth of over 56 per cent and more than 32 per cent, respectively.

Bangladesh fetched $138.75 million from denim exports to the US in this period, up by 56.33 per cent from the earnings of $88.75 million in the corresponding period of 2024, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

US imports of denim items from Mexico, Pakistan, Vietnam, and China recorded 16.27 per cent, 33.29 per cent, 6.49 per cent, and 6.99 per cent growth, respectively, in this period.

On the other hand, Bangladesh's denim exports to the EU during this period stood at $285.52 million, recording 32.43 per cent growth from $215.60 million earned in the corresponding months of 2024.

Pakistan, the second largest denim exporter to the EU, logged 48.11 per cent growth in this period, followed by Turkey at 0.06 per cent, Tunisia at 4.68 per cent, and Cambodia at 55.24 per cent, data shows.

Bangladesh remained the top denim supplier both to the US and the EU in 2024 as the country fetched the highest $675.65 million and $1.28 billion, respectively, from the two destinations, data shows.

Yeasin Al Faisal, manager at Argon Denims Ltd, told The Financial Express the denim business is growing and they are not facing any impact of the new US tariff regime as they mostly ship goods to the EU.

Argon Denims is participating in the 18th edition of Bangladesh Denim Expo that kicked off on Monday at the International Convention City Bashundhara (ICCB) in the capital.

Faisal said they participated in the show to display their products and innovation and also to know about what other suppliers are showcasing.

The two-day event aims at helping the industry enhance its capacity and develop innovation to navigate the uncertain times of tariff and trade war.

A total of 57 exhibitors from 13 countries, including Bangladesh, India, Pakistan, China, Turkey, Spain, Italy, Vietnam, and the US, joined the show to display their latest innovation and goods.

Sanaul Haque, executive director of Azlan Denim Ltd, a concern of Sim Group, said they are expanding their capacity as the demand for denim items is increasing.

Currently, they produce 1.6 million yards of denim fabrics monthly, which will increase to 2.50 million by July, he added.

Abdul Kader Khan, managing director of Khan Accessories and Packaging Company Ltd, said they are exhibiting their accessory items as some of their buyers who have denim business worldwide insisted them to join the fair.

As denim exports are growing, he expects to get new buyers too.

When asked, Chao Ji, sales manager of Black Peony Textile Co Ltd, a Chinese denim fabric producer, said they have been participating in the denim show for the last six years and have their own office in Dhaka.

"Bangladesh is a potential market, and business is growing slowly here with good prices," he said.

Brant Tong, sales manager of XDD Textile, a Vietnamese denim fabric maker, said there are a number of denim factories and washing plants in Bangladesh.

"So, there is huge demand for denim fabric, and we are here in search of more business opportunities," he said.

Speaking about the US new tariff regime, he said business in Vietnam slowed in recent times with a decline in work orders as buyers are now in a wait-and-see situation.

This is because no one knows what would happen after the three-month pause of the proposed US tariffs, added Tong.

The majority of his factory's denim production is destined for the US, he said, adding that buyers are waiting to see further action or negotiations with the US.

He also said some of the buyers have already postponed their bookings.

Md Amdadul Hoque, country representative (Bangladesh) of Diamond Denim, a Pakistani denim factory, said business in May and June usually remains slow and that is what is happening now.

He, however, said they have to bear the cost of an additional 10 per cent hike in tariffs imposed by the US.

Nauman Ahmad, general manager of marketing (denim business) at Azgard Nine Limited, another denim fabric maker based in Pakistan, said there are uncertainties in the US market for all supplier countries - not only Pakistan but also others in Asia.

This is the biggest challenge for the current time, he said.

They have business mostly with the EU, he said, adding their business is moderate and they have not faced any negative impact for the US tariff so far.​

 

[Saif]

Local RMG to remain competitive even if tariffs rise

Bangladesh should improve garment quality and delivery speed amidst intense competition in global supply chains arising from US President Donald Trump’s recent reciprocal tariffs, said some international traders yesterday..Bangladesh has the opportunity to retain its competitive edge due t

www.thedailystar.net

Local RMG to remain competitive even if tariffs rise
Believes international backward linkage companies for denim

The 18th edition of Bangladesh Denim Expo at the International Convention City Bashundhara in Dhaka will come to a close tomorrow. Photo: collected

Bangladesh should improve garment quality and delivery speed amidst intense competition in global supply chains arising from US President Donald Trump's recent reciprocal tariffs, said some international traders today.

Bangladesh has the opportunity to retain its competitive edge due to its large-scale production capacity, something international clothing retailers and brands always take into consideration, they said.

China and Vietnam are facing higher tariffs than Bangladesh in the US market, but there are others facing far less, such as India, Pakistan, Kenya, Jordan and Egypt, they said.

The latter do not have high production capacities, for which they cannot cater to large-volume work orders, they added.

"There is no way to replace Bangladesh because of its production capacity… It is not a matter of tariffs only," said Matteo A Urbini, managing director of Italy-based Soko Chemicals.

He was talking to The Daily Star while attending the 18th edition of Bangladesh Denim Expo at the International Convention City Bashundhara in Dhaka.

Urbini supplies a technology based on a chemical called "hydrogel" for washing denim fabrics to 60 companies in Bangladesh.

The technology is said to require just eight litres of water to wash one kilogram of denim fabric, whereas conventionally 80 litres are required.

Bangladesh is still competitive, said Herve Denoyelle, a representative of French hemp and flax fibre manufacturer The Flax Company, when asked about alternative clothing sourcing destinations to Bangladesh.

Bangladesh and China will remain competitive for mass consumption. Once the final rates of US tariffs are decided after the ongoing 90-day pause, business will grow again, he said.

Products from China and Vietnam will become more expensive because of their higher tariff rates, and Bangladesh should focus on recycled and sustainable products, he said.

His company produces 8,000 tonnes of fibre a year and supplies nearly 100 tonnes to 10 companies in Bangladesh for the manufacture of denim fabrics.

Robert Deakin, sales director of China-based Deyao Textile, which manufactures denim fabrics, said he was cautiously optimistic about Bangladesh.

The final tariff rates are yet to be decided, and business will prevail even if a 37 percent tariff is imposed on Bangladeshi products, he said.

The two-day exposition has brought 57 exhibitors from 13 countries, including India, Pakistan, China, Turkey, Spain, Italy, Vietnam, the United Arab Emirates, Germany, Switzerland and the USA, according to a statement from the organiser.

"Bangladesh has emerged as the fastest-growing apparel exporter to the United States in the first quarter of 2025, posting the highest year-on-year growth of 26.64 percent," said Mostafiz Uddin, founder and CEO of Bangladesh Denim Expo.

This placed Bangladesh ahead of other major exporters such as India (24.04 percent), Pakistan (17.49 percent), Vietnam (13.96 percent) and China (4.18 percent), he said.

Bangladesh is the largest denim exporter to both the US and Europe, he added.​