RMG net exports fall by 15pc in Q4FY25
Business Desk :
Bangladesh’s readymade garment (RMG) sector recorded a 15per cent decrease in net exports during the April-June quarter of FY ’25, primarily due to uncertainties stemming from US tariff announcements, a nationwide strike by the National Board of Revenue (NBR), India’s restrictions on land-port RMG imports, and sluggish global demand.
According to a recent report from Bangladesh Bank, the country’s net RMG exports, calculated by subtracting the value of imported raw materials from export earnings, declined to US $ 5.17 billion in the quarter, representing 56.78per cent of gross RMG exports, down from US $ 6.09 billion (58.90per cent) in the previous quarter.
Total RMG export earnings for April-June stood at US $ 9.12 billion, marking an 11.92per cent decrease from US $ 10.35 billion in the January-March period. Despite the quarter-on-quarter decline, the earnings were still 3.15per cent higher than the same period last year.
Key markets for Bangladeshi garments during this period included the United States, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium, collectively accounting for nearly 72per cent of total RMG exports with US $ 6.55 billion.
The report highlights that global economic headwinds, coupled with domestic challenges such as rising production costs and limited diversification of export markets, contributed to the volatile export trend.
The US’s recent imposition of a 50per cent reciprocal tariff on Indian goods and increased tariffs on Chinese products, with indications of further hikes, are prompting shifts in sourcing patterns worldwide.
Exporters suggest that buyers may now increasingly turn to Bangladesh and Vietnam to avoid high tariffs, potentially reducing sourcing costs by nearly 30per cent.
However, exporters caution that domestic challenges, including a gas crisis, political instability, port congestion, banking sector issues, and the need for a more investment-friendly environment, must be addressed to fully harness this potential.
As the sector navigates these complex dynamics, stakeholders remain optimistic about Bangladesh’s prospects to regain and expand its share in the global garment market amid shifting international tariffs and economic uncertainties.
