RMG export posts minor 0.89pc uptick in 2025, lowest among Asian rivals

Bangladesh has retained its position as the world’s second-largest apparel exporter, but its export growth slowed sharply in 2025, referring the domestic industry has struggled to maintain its hard-won momentum.

According to World Trade Organization (WTO) data released recently, Bangladesh exported $38.82 billion worth of garments in 2025, up just 0.89pc from $38.48 billion a year earlier.

The growth was significantly lower than the 4.46pc expansion of the global apparel market, indicating Bangladesh is losing momentum despite recovering global demand.The global apparel trade to reach $574.46 billion in 2025.

Among the worlds leading apparel exporters, only China, Turkey and the United States recorded export declines.

Vietnam, Bangladesh’s closest competitor, posted 10.53pc growth to $37.51 billion, narrowing the gap with Bangladesh to just $1.31 billion.

India moved up to fourth position with a 3 per cent market share after exporting apparel worth $17.26 billion, 5.47 per cent up, while Türkiye slipped to fifth position with a 2.93 per cent share after exporting RMG products worth $16.81 billion, down 6.11 per cent.

Cambodia recorded the strongest growth at 16.88pc, followed by Pakistan (6.83pc), Indonesia (5.79pc) and India (5.47pc).

Despite the slowdown, Bangladesh accounted for 6.76pc of global apparel exports, second only to China, which held a 27.35pc market share.

However, Bangladesh’s share fell from 7pc in 2024, while Vietnam’s increased from 6.17pc to 6.53pc, bringing it closer than ever to overtaking Bangladesh.

Industry leaders say Bangladesh is finding it increasingly difficult to attract new export orders as competing manufacturing hubs expand capacity and improve competitiveness.

The sector continues to face multiple challenges, including energy shortages, high borrowing costs, political uncertainty, weak investment in manufacturing capacity, gas supply constraints and rising production costs, all of which have undermined the country’s competitiveness.

The WTO data also highlight a broader shift in global apparel sourcing. China’s exports declined 4.92pc to $157.11 billion, reducing its share of global apparel exports from 31.71pc in 2021 to 27.35pc in 2025.
Much of that business appears to have shifted to other Asian producers, particularly Vietnam, Cambodia and Pakistan.

Bangladesh’s export performance has also become increasingly volatile in recent years.
After recording 27.64pc growth in 2022, exports contracted 21.49pc in 2023 before rebounding 7.23pc in 2024. The slowdown to less than 1pc growth in 2025 suggests that recovery has weakened considerably.

Sector insiders said maintaining Bangladesh’s position as the world’s second-largest garment exporter will become increasingly challenging unless the country can restore stronger export growth and improve its competitiveness.

With Vietnam rapidly closing the gap, the competition for second place in the global apparel trade has become tighter than at any point in recent years.

Bangladesh has generally held the second position among global apparel exporters since 2009, while Vietnam has usually ranked third behind market leader China.

However, Vietnam overtook Bangladesh in 2020, pushing the country to third place. Since then, the two countries have competed fiercely for the second position.