Bangladesh retains second spot in global apparel exports

Despite local and global challenges, Bangladesh has retained its position as the world’s second-largest apparel exporter last year, after China.

However, its global market share dipped by 0.48 percentage points. Vietnam remains in third place, while China holds the top spot, though its own market share also declined by 2 percentage points, according to the World Trade Organization’s (WTO).

In a latest report – World Trade Statistics: Key Insights and Trends in 2024 – published on its official website recently, the WTO noted that global trade in goods and services grew by 4 per cent in 2024, reaching USD 31.5 trillion, following a 2 per cent decline in 2023.

It further said global merchandise trade grew by 2 per cent, while services rose by 9 per cent. The share of services in global trade reached 26.4 per cent– the highest since 2005.

In 2024, global apparel imports totaled USD 557.50 billion, up by 7 per cent from USD 520 billion the previous year. Bangladesh’s apparel exports remained steady at around USD 38 billion for the second consecutive year, registering a slight 0.21 per cent growth and totaling USD 38.48 billion. However, its global market share declined from 7.38 per cent in 2023 to 6.90 per cent in 2024.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo, “If Donald Trump’s reciprocal tariff policy takes effect, Bangladesh’s apparel exports to the US market could decline, while Vietnam may register a rise in its exports. This could narrow the gap between Bangladesh and Vietnam in the global market. Still, we are hopeful of maintaining the second position this year.”

The apparel sector in Bangladesh faced several headwinds last year, including the Russia-Ukraine war, the Israel-Palestine conflict, and the political changeover in the country. Additionally, labour unrest forced temporary factory closures in major industrial hubs like Ashulia. Energy shortages – especially gas and electricity – also disrupted production.

On the flip side, there are discrepancies in export figures, and it came to light last year. In July 2023, the Bangladesh Bank flagged inconsistencies in data reported by the Export Promotion Bureau (EPB), which it later revised. In 2022, the WTO had reported Bangladesh’s apparel exports at USD 45 billion, though actual figures were lower. Across three fiscal years (2021–2023), EPB data showed USD 22.61 billion more exports than the National Board of Revenue (NBR), raising doubts about the accuracy of WTO’s past statistics.

China remains the world’s top apparel exporter, despite a drop in export volumes since the pandemic. In 2024, China exported USD 165 billion in garments, up by just 0.30 per cent. Its global market share fell from around 35 per cent in 2017 to 29.64 per cent in 2024.

Vietnam is the third-largest apparel exporter. It briefly overtook Bangladesh in 2020 but dropped to third place again the following year. In 2024, Vietnam’s apparel exports rose by 9 per cent to USD 34 billion, pushing its market share above 6 per cent.

According to the WTO report, Turkey and India ranked fourth and fifth, respectively, in global apparel exports. Turkey exported USD 18 billion, down by 4 per cent from the previous year, while India’s exports rose by 6.5 per cent to USD 16 billion. Their respective global market shares were 3.21 per cent and 2.94 per cent.

Cambodia, Pakistan, Indonesia, and the United States ranked sixth to ninth. In 2024, Cambodia exported USD 10 billion, while Pakistan and Indonesia each exported USD 9 billion. The US exported USD 7 billion in garments.