The country’s apparel exports to the US witnessed a robust growth in terms of both value and volume during the first quarter of 2022.
The US imported ready-made garment (RMG) items worth US$2.47 billion from Bangladesh during January to March of 2022, marking a 62.23 per cent growth year on year, according to OTEXA, an affiliate of the US Department of Commerce.
Bangladesh exported apparel worth $1.52 billion to the US during the first quarter of 2021.
The country’s apparel exports in terms of volume also sustained a 50.12 per cent growth to 909.25 million square metres during January to March, up from 605.68 million square metres during the corresponding period of 2021.
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 destination without any duty preference.
The 2021 RMG exports also surpassed those of the pre-pandemic level in 2019, when Bangladesh earned $5.92 billion.
Industry insiders said a high demand for the Bangladeshi RMG products, especially knit ones, since 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 — both in terms of volume and value.
Gradual economic recovery, aided by the Covid-19 vaccination coverage, and shifting orders from China due to the trade war between the US and China have also contributed to the double-digit growth, they added.
However, Bangladesh’s main competitors China and Vietnam also witnessed 44.27 per cent and 29.86 per cent growth respectively.
The overall US apparel imports from across the world during January to March of 2022 also increased by 39.71 per cent to $24.31 billion, up from $17.40 billion during the same period of 2021, OTEXA data show.
The US imported apparel items worth $5.32 billion from China, and $4.45 billion from Vietnam.
Apparel exports from other major sourcing destinations like India, Pakistan and Cambodia grew by 53.49 per cent, 53.82 per cent and 39.99 per cent respectively.
When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Md Shahidullah Azim said exporters received a plenty of work orders from foreign buyers, including the US, since last October and the growth trend might sustain until July next.
Prices of apparel also increased mainly due to high prices of raw materials and logistics cost, he said, but the enhanced prices still remain below the production cost.
Responding to a question, he said exports of knitwear items to the USA also grew during the pandemic because of its strong backward-linkage industry that helps deliver the products within the shortest possible lead time, compared to woven items.
Woven apparel makers need to import about 60 per cent of woven fabrics while knitters could source more than 80 per cent of their raw materials from local market, he noted.
