- Bangladesh’s Apparel Exports to EU Surge in First Quarter of 2025
Bangladesh’s garment exports to the European Union (EU) market experienced remarkable increase in the first quarter of this year (January-March). According to Eurostat’s latest numbers, export earnings grew by 29.06 percent in just three months to $5.976 billion, up from $4.631 billion in the same period previous year.
Bangladesh’s garment exports to the EU climbed in volume by 24.64 percent, while average unit prices increased by 3.55 percent. This balanced growth in value, quantity, and unit pricing helped to drive the considerable overall revenue increase.
Eurostat also revealed that overall garment imports into the European Union increased by 16.84 percent in the first three months of 2025, reaching $24.6523 billion. Import volumes increased by 20.25 percent, indicating a robust recovery in purchase orders across the sector. However, the average unit price of imported clothes fell by 2.84%, showing increased price pressure and competitive market dynamics.
Against this backdrop, Bangladesh has outperformed many of its peers by growing export volume while also achieving higher unit pricing. Analysts attribute Bangladesh’s success to its low pricing, skilled labor force, and increased emphasis on sustainable production processes. However, they warn that maintaining this pace will necessitate increased policy support and the creation of export-friendly infrastructure.
Aside from Bangladesh, numerous countries saw significant increases in their garment exports to the EU during the same period. China increased its exports by 24.94 percent to $6.672 billion, India by 24.08 percent to $1.444 billion, Pakistan by 28.73 percent to $1.085 billion, and Cambodia by 33.45 percent to $1.1614 billion. Vietnam’s exports increased by 18.09 percent, totaling $1.14 billion.
In comparison, Turkey’s garment exports to the EU fell 4.14 percent to $2.369 billion during January to March 2025.
Source: Textile Today
- Bangladesh Leads US Apparel Import Growth in Q1 2025
Bangladesh has recorded the highest growth in apparel exports to the United States during the first quarter of 2025, outperforming global competitors with a 26.64% year-over-year increase.
According to figures from the Office of Textiles and Apparel (OTEXA), Bangladesh shipped garments worth $2.22 billion to the United States between January and March, exceeding India, Pakistan, Vietnam, and China.
During this period, the United States imported clothes worth $20.05 billion from all sources, a 10.95% increase over the same quarter in 2024.
Bangladesh posted strong growth in shipment volume, rising by 25.24%, indicating higher demand and manufacturing capacity. India led in volume growth, followed by Pakistan, Vietnam, and China. In terms of unit price growth, Vietnam recorded the highest increase, followed by China and Bangladesh, while India and Pakistan saw declines.
Asif Ashraf, managing director of Urmi Group, attributed Bangladesh’s performance to its focus on more sophisticated garment exports. “The slight uptick in prices suggests that we are exporting more sophisticated garments to the US,” he said. However, he also cautioned that recent tariff hikes by former President Donald Trump could pose future challenges. “While Bangladesh might benefit from the sustained high tariffs on Chinese products, if those tariffs begin to erode US consumers’ purchasing power, it could hurt overall import demand – including for Bangladeshi goods.”
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), noted that China’s slower growth indicates a shift in market share. “This suggests that Bangladesh has captured a share of the market China is losing,” he said.
Source: The Business Standard
- Bangladesh Poised to Retain Global Lead in Cotton Imports in 2025–26
Bangladesh is on track to retain its status as the world’s biggest cotton importer in the marketing year (MY) 2025-26, with imports projected to reach 8.5 million bales, according to a record-setting forecast by the United States Department of Agriculture (USDA).
The USDA report anticipates a modest recovery in global cotton consumption, which is set to reach a five-year high of 118.1 million bales. This resurgence is attributed to stable economic conditions,
Bangladesh’s high increase in cotton imports indicates the continuous expansion of its ready-made garment (RMG) sector. RMG exports increased 10.86 percent year on year in the first ten months of FY2024-25, hitting $30.25 billion, according to Export Promotion Bureau (EPB) figures.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stated that higher imports of US cotton are part of a larger strategy to close the trade imbalance with the United States. He further stated that this measure helps Bangladesh’s case for duty-free access for its garment exports in the US market.
“The government has already taken necessary initiatives in this regard,” said Mohammad Hatem. He also emphasized that US cotton is valued for its superior quality and consistency, making it a preferred choice for local spinners and manufacturers. “With global buyers increasingly prioritizing sustainable sourcing and natural fibres, cotton remains a vital raw material for Bangladesh’s spinners and knitwear producers,” he added.
The USDA also forecasts that worldwide cotton trade would increase by 2.3 million bales to 44.8 million bales in MY2025-26. Meanwhile, China, previously the top importer, is predicted to drop imports from 15 million bales in MY2023-24 to just 7 million bales in MY2025-26, allowing Bangladesh to enhance its position.
The survey also predicts stable global cotton prices, thanks to abundant supply, a decreasing US dollar, and falling energy costs. These variables may assist reduce input cost constraints for Bangladeshi millers, which have seen increased costs over the last two years.
Foreign Affairs Adviser Md Touhid Hossain, stated that Bangladesh plans to increase cotton imports from the US to enhance bilateral trade ties. He suggested that this could provide protection against potential tariff-centric policies, particularly under former US President Donald Trump’s administration. Despite rising imports, domestic cotton production remains low. Bangladesh now supplies only 2% of its yearly cotton needs. Md Touhid Hossain emphasized the significance of raising local supply to meet at least 20% of the country’s projected yearly demand of 9 million bales.
Efforts to scale up production are ongoing but face challenges due to land availability, climate issues, and competition with food crops.
As global cotton trade patterns change, Bangladesh’s increasing import volumes reflect not only the country’s pivotal role in the textile value chain, but also its larger trade and policy goals. With continuous investment in sourcing techniques and domestic capacity, Bangladesh is well positioned to maintain its global garment industry leadership.
Source: The Daily Star
- Bangladesh Reaches 243 LEED-Certified Garment Factories with Three New Additions
Bangladesh has added three more LEED-certified ready-made garment (RMG) factories, bringing the total to 243 certified facilities, according to industry sources. The updated figures include 101 Platinum and 128 Gold certified factories, further reinforcing the country’s leadership in sustainable manufacturing. Bangladesh now accounts for 68 of the world’s top 100 highest-rated LEED-certified factories.
The details of the newly certified factories are as follows:
• Tasniah Fabrics Ltd Admin Building and Tasniah Fabrics Ltd RMG Building – Located in Nayapara, Kashimpur, Gazipur – Platinum
• Comfit Golden Leaf – Located in Gorai, Mirzapur, Tangail – Platinum
Among them, Tasniah Fabrics Ltd Admin Building has made history by becoming the highest-rated LEED-certified factory in the world, scoring 107 points under the LEED v4 rating system. This surpasses the previous global record of 106 points held by SM Sourcing.
Industry leaders have hailed this as a landmark moment for Bangladesh’s RMG sector.
As global buyers increasingly prioritise ESG compliance and sustainability, this milestone is expected to further elevate Bangladesh’s image in the global apparel market, while setting new standards for green building excellence across industries.
Source: The Business Standard
- Global Trade Shift: How the US-China Deal Impacts Bangladesh
The United States and China have agreed to temporarily slash reciprocal tariffs. Under the agreement, both sides will reduce tariffs by 115 percent. The US will cut extra tariffs it imposed on Chinese imports in April this year to 30 percent from 145 percent, while Chinese duties on US imports will fall to 10 percent from 125 percent. The new measures are effective for 90 days, and both sides have also agreed to launch a new economic dialogue forum to strengthen future cooperation.
The global economy will benefit from a deal in the US-China trade negotiations in Switzerland, but Bangladesh will face mixed long-term effects. According to experts, if Bangladesh can properly position itself, the US-China tariff walls will still be high enough to draw Chinese companies to relocate, even with the tariff reductions.
Zahid Hussain, former lead economist of the World Bank’s Dhaka office, noted the potential comparative advantage for Bangladesh:
“We will have to see how much the tariffs are reduced. After the first day of negotiations, Trump said that 80% sounds right to him. So, even if we do not get any good results from the negotiations, we will still get a 28% tariff advantage compared to China. However, we need to figure out in which sectors we can use that advantage.
In fact, we need to look at the US negotiations with India too, because how advantageous our comparative advantage would be will depend on what deal is made with India. Originally, reciprocal tariffs from India were less than ours, but we do not know what will happen now. That’s why it is difficult to say definitively whether the negotiations in Switzerland will be in our favour or not.
Right now, Bangladesh has not clearly said what their strategy is. I have heard that they have asked for more time beyond the 90 days. But this will be a problem. China has warned that any deals with the US that harms China will see retaliation. So, all these different areas that need to be balanced is not something we are clear on.
This is not just about tariffs, there are non-tariff barriers, issues with public procurement, and intellectual property laws. There have been no clarifications on any of these issues. The government went to Washington but we have no idea what they discussed there regarding all these interrelated issues. We need more clarity in the decision-making process and negotiations.”
Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue, added that the picture is still unpredictable:
“The US is negotiating bilaterally with other countries, so we have to see what bilateral discussions are held with Bangladesh ultimately. It also depends on the 10% additional tariff and what compromises we have had to make and their economic implications.
Depending on how much tariff is put on China, we have to see what advantage we can get from that, which will depend on our situation. We have greater cotton-based exports, for example. In the markets we compete with China on, we may get an advantage because of tariff differentials. It’s all very unpredictable.
If we can get investments targeting US markets, we could get some benefits. There are also talks of cotton warehouses for the US, so if we can export cotton, that would be good. In the medium term, the US had said earlier that we are not ready for Free Trade Agreements (FTA) negotiations due to labour standards, intellectual property and other regulatory concerns, which is partially true. If we can address these concerns, we could do FTA negotiations too.
So, we have to see this from a multidimensional perspective. The US and China are just one part of the puzzle. We have to see how negotiations with other countries like Vietnam goes. If they put an additional 5% on Vietnam and 10% on us, it will be a different scenario. So, there are a lot of factors involved, and as for the concerns they have raised about us, this is not just their concern. It is a concern for anyone who wants to invest in our country. So, we must address these.”
Shams Mahmud, Managing Director of Shasha Denims Ltd and former president of the Dhaka Chamber of Commerce and Industry (DCCI), warned of Bangladesh falling behind in the race:
“If the US and China can reach an agreement, then Bangladesh will be the loser. The 10% tariff on us will stay intact, so if China and the US reduce tariffs on each other, our competitive advantage will be hindered.
We already know that Indonesia, Cambodia and Vietnam are having conversations with the US Department of Commerce. We are seeing reports of these in-depth conversations in the news. But from Bangladesh’s side, we have not seen any discussions or proposals since the first letter.
Even today, I saw on the news that the US has asked for a proposal from us, which means we have not had discussions with them yet. So, we are falling behind. This is even more important for us, because even India has come to an agreement. So, except for Bangladesh, most other countries are moving forward. This is unfortunate, because we are still dependent on the RMG sector.
The other thing is, even if there is a 10% additional tariff, in areas where we do not have competitive advantages, we will be hit very hard. Our main advantage was lower wages, but if we have to compete with other countries in value-added products which require more investment and skills, such as outerwear jackets and sweaters, we cannot survive.”
Mehdi Mahbub, President of RMG Centre, acknowledged the potential for increased orders but was cautious about missed opportunities:
“If China has high tariffs on apparels, then American buyers will certainly try to ship from other countries. So, Bangladesh is hoping to get increased orders from that angle, which is a positive for us.
On the negative side, we were expecting some investments, such as relocation of some industries and businesses, but we may not see that anymore if Trump reduces tariffs on China. China is ahead of us in terms of productivity, logistics and backward linkage. Even though Bangladesh is the second-largest global RMG exporter, we are still far behind China in a lot of ways.
My personal observation is that China has the upper hand in the talks because they wanted an independent, neutral place to have these discussions. The US under Trump wants to do things their own way, and they are not giving importance to neutral bodies like the UN and others unfortunately.
But if you have noticed, President Trump has started softening his stance on the tariffs already because US consumers have been suffering a lot due to the tariff war. So, I think it is inevitable that we will see a softer tariff regime for both countries because they have to accept that neither country is gaining anything from this.”
Source: The Business Standard
- April sees lowest exports in 10 months of FY25
April recorded the lowest export earnings in 10 months of the current fiscal year (FY2024–25), with total exports amounting to just over $3 billion. This marks the lowest monthly figure since July, according to data released by the Export Promotion Bureau (EPB).
The decline is largely attributed to factory closures during the eight-day Eid-ul-Fitr holidays, an ongoing gas supply crisis in industrial zones, and shipment delays caused by uncertainty over a sharp US tariff hike introduced by the Trump administration.
Despite the dip, April exports still posted a slight year-on-year growth of 0.86%, totaling $3.01 billion compared to the same month in FY24. However, this is significantly lower than March’s export earnings of $4.25 billion. The previous lowest export month in FY25 was September, with $3.52 billion in earnings.
“We observed that export orders have not actually declined, and there is no need to panic,” said Md. Fazlul Hoque, the managing director of Plummy Fashions Limited and a former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). He also noted that Bangladesh observed Eid holidays in April last year as well, and export earnings then were nearly the same.
Despite these challenges, exporters remain optimistic. Order flows remain stable, and many expect the situation to improve in the coming months.
From July to April of FY25, Bangladesh exported goods worth $40.20 billion, representing a 9.83% increase over the same time last year.
The Ready-Made Garment (RMG) sector remained the largest contributor, earning $32.64 billion over the year, a 10% increase over the previous year.
RMG exports totaled $2.40 billion in April 2025, up slightly from $2.38 billion in April 2024, representing a monthly growth rate of 0.44%. While knitwear exports increased by over 5%, woven garment exports fell by more than 4.65% year on year.
Other sectors had varied results. Leather and leather goods, jute and jute products, and engineering goods all saw year-on-year increases of 12%, 2.55%, and 29%. On the other hand, home textiles and agricultural products declined by 2.69% and 19%, respectively.
Source: The Business Standard
- Mohammad Hatem Elected BKMEA President
The Progressive Knit Alliance, led by Mohammad Hatem, won all 35 directorial posts in the biennial election of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), held on 10 May.
Following the panel’s landslide victory, the new board convened on 11 May to elect its office bearers for the 2025-27 term. As expected, panel leader Mohammad Hatem was elected president. Fazle Shamim Ehsan was elected executive vice president.
The remaining office bearers — including the executive president, senior vice president, vice president (finance), and five vice presidents — were all elected unopposed, as per the pre-announced election schedule. The five vice presidents are Md. Samsuzzaman, Gowher Siraj Jamil (Chattogram), Ashiqur Rahman, Fakir Kamruzzaman Nahid, and Mohammad Rashed.
Source: The Business Standard
