Muhammad Ayub Ali :
After a considerable period, the country’s ready-made garment (RMG) sector is witnessing a positive trend, having regained a strong foothold in the US market. This development presents an opportunity to strengthen export relations in the future.
Bangladesh’s RMG industry is benefiting from the ongoing US-China trade war, which has led to an increase in exports of Bangladeshi products to the United States.
In January this year, Bangladesh’s garment exports to the US exceeded $800 million, marking a 45.93 per cent rise compared to the same period last year, when exports stood at $547.9 million. This growth rate surpasses that of key competitors such as China, Vietnam, Indonesia, and India.
Several factors contribute to this expansion in the US market, the world’s largest economy. Experts attribute the shift to the US economic recovery and the imposition of additional tariffs on imports from certain countries, including China.
The decline in Chinese imports has opened up new opportunities for countries such as Bangladesh, Vietnam, India, and Indonesia. Consequently, Bangladesh has effectively capitalised on this opportunity, maintaining a steady increase in exports.
According to the latest data from the US Office of Textiles and Apparel (OTEXA), the United States imported $7.2 billion worth of ready-made garments in January, reflecting a 19.4 per cent increase from the previous year.
China remained the top exporter, supplying garments worth $1.6 billion, followed by Vietnam with $1.44 billion. However, Bangladesh demonstrated a significantly higher growth rate than these competitors, highlighting its strengthening position in the US market.
Entrepreneurs within the Bangladeshi garment sector report that US buyers are increasingly considering Bangladesh a more attractive sourcing destination due to its lower production costs and skilled workforce.
If the government ensures consistent gas and electricity supplies, Bangladesh could achieve even greater growth and potentially become the second-largest exporter to the US market.
Currently ranked third, Bangladesh exported $7.34 billion worth of ready-made garments to the US in 2024, marking a 0.75 per cent increase from 2023. Given the present growth trajectory, exports are expected to rise further in the coming months.
Analysts note that in 2017, then-US President Donald Trump imposed tariffs on imports from several countries, including China, a policy that continues to benefit Bangladesh and other nations. A 10 per cent additional tariff on Chinese products has prompted US buyers to shift their purchase orders away from China.
Bangladeshi industry leaders believe that a strategic approach is necessary to fully capitalise on this opportunity. Morshed Sarwar, Senior Vice President (Finance) of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation, “Our growth is primarily driven by the economic recovery in the US and increased purchase orders.
If we proceed in a well-planned manner, we can attract greater investment opportunities resulting from the US-China trade war. Many US buyers who previously sourced from China are now showing interest in Bangladesh.”
Another key factor behind Bangladesh’s expanding exports to the US is the buyers’ trust in the country’s reliability and product quality. In recent years, Bangladeshi garment factories have upgraded their production processes to meet international standards, ensuring improved working conditions.
The RMG industry is now more competitive than ever, owing to enhanced worker skills, technological advancements, sustainable production methods, and strong partnerships with international brands.
