Bangladesh fetched US$912.90 million from readymade garment (RMG) shipments to the country’s single-largest export destination in September last against US$678.08 million in September’21, according to figures from OTEXA, an affiliate of the US Department of Commerce.
During the month, the country’s overall RMG export earnings stood at US$3.16 billion marking a negative growth of 7.82 per cent year-on-year, according to Export Promotion Bureau (EPB) data.
When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Md Shahidullah Azim said due to the trade war between the US and China, buyers were shifting their orders from China.
He said that Bangladesh is among the few countries being able to grab orders shifted from China.
The OTEXA data also showed that US imports from China in September’22 recorded a 9.78 per cent negative growth to US $2.17 billion. China exported apparel worth US$2.40 billion in September ’21, it showed.
Bangladesh’s RMG exports to the US market during January to September period of 2022, however, stood at US$7.55 billion, marking nearly a 51 per cent growth over US$5.0 billion during the corresponding period of last year.
Despite the Covid-19 pandemic, Bangladesh fetched $7.14 billion from RMG exports to the US in 2021, keeping the market as its single-largest export destination without any duty preference.
On the other hand, US apparel imports from China and Vietnam during the first nine months of 2022 witnessed 29 per cent and 34.69 per cent growth to US$17.72 billion and US$14.59 billion respectively, according to OTEXA data.
During the period, India posted 53.39 per cent, Cambodia 46.58 per cent and Indonesia 54.66 per cent growth to the US market, data showed.
Industry insiders said a high demand for the Bangladeshi RMG products, especially knit items, since the beginning of the Covid-19 pandemic, significant rise in prices of raw materials, and buyers’ confidence in the local industry’s resilience and compliance have helped the exports grow since October last year.
But the demands for apparel items have declined in recent months due to the economic slowdown and high inflation in major markets, resulting in a huge inventory, they said.
They, however, said both US and EU buyers are confirming a reduced rate of work orders previously they projected for the upcoming season.
