RMG exports to EU fall nearly 20pc in Oct
Business Report :
Bangladesh’s readymade garment (RMG) exports to the European Union (EU) suffered a sharp setback in October this year, falling by nearly one-fifth year-on-year, as weakening demand in the bloc and intensifying competition from rival exporters weighed heavily on shipments.
According to Eurostat data published on Tuesday, Bangladesh exported garment products worth €1.40 billion to the EU in October, marking a 19.67 per cent decline from €1.75 billion in the same month last year. The downturn coincided with a broader contraction in the EU’s apparel imports, which dropped by 14.55 per cent to €7.37 billion in October 2025 from €8.63 billion a year earlier.
The October slump came after a year marked by sharp fluctuations in Bangladesh’s export performance to its largest single market. Data analysis shows that exports surged by more than 61 per cent in January, followed by strong growth of 26.64 per cent in February and 18.54 per cent in March. Momentum, however, slowed significantly in April, with growth easing to 5.97 per cent, before turning negative in May with a 10.92 per cent decline.
June brought a robust recovery as exports rebounded by 20.42 per cent, followed by a moderate 6.87 per cent growth in July. The trend again reversed in August, when shipments contracted by 7.73 per cent, before a temporary rebound of 15.66 per cent in September. The sharp fall in October underscores the volatility facing Bangladesh’s garment exporters in the EU market.
Industry insiders say Bangladesh is increasingly facing stiff competition in the EU, particularly from China, which has been aggressively expanding its presence following the imposition of a new US tariff regime. Other competitors such as Vietnam, Cambodia and Pakistan have also gradually increased their footprint in the EU over the past decade, intensifying the trade race in recent years.
Speaking to the media, Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh is grappling with multiple challenges in the EU market. “The EU economy itself is going through difficulties, while major competitors like China are now focusing more on the EU due to high US tariffs on Chinese goods,” he said.
Ehsan noted that China is expanding its EU market share aggressively by offering “much lower prices” to buyers in an effort to compensate for declining access to the US market. This price competition, he said, is putting additional pressure on Bangladeshi exporters, who are already contending with rising production costs.
Despite the October decline, Bangladesh’s overall garment exports to the EU from January to October this year remained positive. During the ten-month period, exports grew by 9.45 per cent to €16.67 billion, up from €15.23 billion in the corresponding period of 2024.
Exporters warn that unless demand in the EU recovers and competitive pressures ease, Bangladesh’s RMG sector may continue to face an uneven and uncertain road ahead in its most important export destination.