The growth of apparel shipments from Bangladesh to the European Union (EU) not only surpassed that of China, but also all other major suppliers in the world between January and August this year, according to the latest data from Eurostat.
Eurostat, a directorate general of the European Commission based in Luxembourg, mainly provides statistical information to various institutions of the EU.
Bangladesh’s apparel exports to the EU rose 45.26 per cent year-on-year to about $15.37 billion during the January-August period, when the trade bloc imported some $67.18 billion worth of clothing items from all over the globe.
As such, Bangladesh remains the second largest apparel import source for the EU with a roughly 23 per cent share.
China, the EU’s top apparel import source having 28 per cent share, shipped $18.85 billion worth of clothing items to the trade bloc during the same period, registering growth of 26.59 per cent year-on-year.
Turkey, the EU’s third largest sourcing destination for apparels, posted around 20 per cent growth compared to the same period the previous year. Similarly, shipments from India rose 28.85 per cent year-on-year to reach $3.56 billion.
Other sourcing countries that registered high growth in apparel exports to the EU include Cambodia with 42.21 per cent, Pakistan with 31.34 per cent and Indonesia with 35.41 per cent.
The EU played a massive role in Bangladesh becoming the second largest garment exporter in the world over the past four-and-a-half decades.
Just after gaining independence in 1971, Bangladesh started enjoying trade benefits under the EU’s Everything but Arms initiative, which eventually elevated the country to its current position.
So, local suppliers are still upbeat about their potential exports once the country loses much of these benefits following its graduation from the UN’s grouping of least developed countries (LDC) in 2026.
SM Khaled, managing director of Snowtex, which exported 50 per cent of its more than $300 million worth of garment shipments between January and August to the EU, is hopeful they may perform even better after the country’s LDC graduation.
The competitive price, quality and recent developments in safety and compliance have brightened the sector’s image. Besides, Bangladesh is now a global champion in the green garment category.
Moreover, the country is capable of catering large quantities of goods as local investors have poured a lot of money into the sector over the years, Khaled said.
MA Jabbar, managing director of DBL Group, another leading garment exporter, said a lot of work orders are shifting to Bangladesh from China because of the recent trade war between China and the US. This includes an embargo by western clothing retailers and brands on using Chinese cotton for their products.
“However, the price is still low,” said Jabbar, who ships 90 per cent of his garment items to the EU.
Bangladesh already surpassed China in denim and T-shirt exports to the EU almost four years ago and in the future, local suppliers may overtake those of China in many other categories, said a major garment exporter seeking anonymity.
“However, China’s overall export volume is too high as they ship goods all over the world in bulk while Bangladesh’s exports are still confined to certain destinations like the EU and US,” he added.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said the country has been receiving higher prices for two particular reasons over the last two or three years.
First, buyers are paying more to adjust with the abnormal price of raw materials and second, the country is exporting value-added garment items.
For instance, Bangladesh now exports garment items worth up to $35 as the production base has been upgraded from basic to more high-end.
But Bangladesh’s growth in exports to the EU will slow down a bit this winter because of the energy crisis in Europe, he said.
“In the near future, Bangladesh will become the number one in all product categories in Europe,” Hassan added.
