Bangladesh remains 2nd-largest apparel exporter to US, how do others rank?

Bangladesh has maintained its position in the United States market as the second top exporter of readymade garments in the first five months of the current year (January-May), despite a decline in its exports.

On the other hand, Vietnam, which is at the top in readymade garment exports, increased its export volume.

According to data released by the US Office of Textiles and Apparel (OTEXA), Bangladesh exported 3. 25 billion dollars worth of ready-made garments to the US market in the first five months of this year, which is 8. 1 per cent less compared to the same period last year.

However, this rate of decline in exports is slightly less than the overall contraction in the US ready-made garment import market. This means the decline in demand is the main reason for the drop in Bangladesh's exports.

Meanwhile, competitor Vietnam has solidified its position as the top supplier in the US market. In the first five months of this year, Vietnam exported 6.39 billion dollars worth of ready-made garments, which is 1. 5 per cent more than the same time last year.

According to OTEXA data, US businesses imported 28. 77 billion dollars worth of ready-made garments from January-May, which is 9. 25 per cent less compared to the same period last year. Last year, US businesses imported 31. 71 billion dollars worth of garments during the first five months.

When inquired, Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo that even though demand in the US market has increased slightly, it has not returned to its previous level. Therefore, there is no significant potential for a sharp increase in exports soon. Mohammad Hatem mentioned that the US is investigating two allegations against Bangladesh and other countries.

There is also concern over the potential imposition of new tariffs after these investigations, which has made buyer companies somewhat cautious about placing orders.

He suggested that effective measures should be taken by the Bangladesh government regarding these two investigations.

China, which has long held the top position in the US market, is steadily losing its market share. It is evident that US buyer companies are shifting their business from China to elsewhere due to countermeasures and geopolitical reasons.

In the first five months of the current year, China exported 2. 80 billion dollars' worth of readymade garments, which is 42. 75 per cent less than the same period last year. China's supply, measured by quantity, also decreased by around 30 per cent during this time. Although China is the third top readymade garment exporter at the end of May this year, it was in second place during the same time last year.

Countries like Indonesia and Cambodia are making significant progress in capturing China's lost business. In the first five months of this year, Indonesia and Cambodia's readymade garment exports to the US increased by 5. 49 per cent and 14.9 per cent, respectively. During this time, Indonesia exported 1. 97 billion dollars, and Cambodia exported 1.74 billion dollars worth of ready-made garments.

Another competitor of Bangladesh in this market, India, saw its ready-made garment exports fall by 26.37 per cent. In the first five months of this year, India exported 1.79 billion dollars' worth of ready-made garments.

With its exports decreasing by nearly 26 per cent, India dropped from fourth to fifth place in the ready-made garment export market. Indonesia secured the fourth position, and Cambodia is in sixth place.

Although demand for ready-made garments was low in the US market at the beginning of the year, there was a slight positive trend observed in May.

According to OTEXA data, US overall imports increased by 2. 77 per cent that month.

During this time, Bangladesh's readymade garment exports increased by about 6 per cent. However, China's exports increased by 18 per cent, Indonesia's by 23 per cent, and Cambodia's by 18 per cent.

Despite a general decline in demand, the value of Bangladesh's ready-made garment exports in the US market remained relatively stable in the first five months of this year.

During the January-May period, the average unit price of ready-made garments exported by Bangladesh was 2. 99 dollars, which is 2 per cent lower than the same period last year. Meanwhile, the global average price was 3.14 dollars.

In this aspect, competitor countries like China had an average unit price of 1.43 dollars, Pakistan 2. 59 dollars, and Cambodia 2. 91 dollars for their exported ready-made garments, which are lower than Bangladesh's.

On the other hand, Vietnam had an average unit price of 3. 39 dollars, India 3. 41 dollars, Honduras 3. 64 dollars, Indonesia 3. 77 dollars, and Mexico 4. 45 dollars per unit for their exported readymade garments, which are higher than that of Bangladesh.