[🇧🇩] Textile & RMG Industry of Bangladesh

[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.​