Senior Correspondent, Dhaka:
Bangladesh has retained its position as the second-largest apparel exporter to the US, despite a decline in shipments during January-July, highlighting both the country’s resilience and the challenges facing its garment industry.
According to US Office of Textiles and Apparel (OTEXA) data, Bangladesh exported $4.66 billion worth of garments to the US during the period, down 6.50% year on year. In July alone, exports declined 10.73%. Yet Bangladesh remained ahead of China, whose shipments fell much more sharply by 34.21% to $4.55 billion.
The shift reflects a broader restructuring of the US apparel market. China’s declining share is creating opportunities for competing suppliers, particularly Vietnam, which remained the largest exporter to the US with shipments worth $9.36 billion. Indonesia and Cambodia also recorded growth, indicating that Bangladesh faces competition from several directions rather than benefiting automatically from China’s retreat.
Bangladesh’s relatively favorable tariff position provides an advantage, but industry leaders warn that tariffs are only one part of the competitiveness equation. Rising production costs, high raw-material expenses, and persistent gas and electricity shortages could limit exporters’ ability to capture additional market share.
The more important concern is therefore whether Bangladesh can convert increased market opportunities into sustainable and profitable growth. Export volume alone may not adequately reflect industry performance if manufacturers are forced to accept lower prices or sell below production costs.
The February Agreement on Reciprocal Trade with the US could offer another competitive advantage. Its textile provisions may allow garments produced with US-sourced cotton and man-made fibers to receive duty-free access, potentially strengthening Bangladesh’s position if implemented effectively.
Overall, Bangladesh’s No. 2 ranking signals resilience, but retaining it will depend on improving cost efficiency, securing reliable energy, and increasing domestic value retention. China’s weakening position offers an opening, but Bangladesh must strengthen its fundamentals to turn that opening into lasting gains.
