Bangladesh's apparel exports to the United States plunged by more than 19 per cent in the first two months of this year compared to last year, despite its main competitors China and Vietnam experiencing a positive trend in the market.
The slump in the country's biggest export market is evident in both the value and volume of exports, according to US official data.
Exporters attribute a number of domestic issues, such as the high cost of doing business and a lack of diversification, to their loss of export share in the US market.
Figures released by the Office of Textiles and Apparel (OTEXA) on April 4 show that Bangladesh's readymade garment exports to the USA totalled $1.18 billion in January and February of 2024.
This represents a 19.24 per cent decrease compared to the $1.46 billion earned in the corresponding period of 2023.
The US imported 395.69 million square metres of apparel items from Bangladesh in the January-February period this year -- which is about 12.79 per cent lower than the 453.73 million square metres shipped in January-February of 2023.
In contrast, China's apparel exports to the US grew by 0.48 per cent in value and 14.94 per cent in volume during the first two months of this year. Vietnam's apparel exports to the US in the January-February period of 2024 also increased -- by 0.14 per cent in value and 8.81 per cent in volume.
However, overall US apparel imports from the world in the first two months this year decreased by 7.78 per cent to $12.18 billion -- down from $13.21 billion in January and February of 2023.
Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said work orders are slow.
Exporters are struggling to meet lead times for current work orders due to a severe gas crisis, he told The Financial Express.
Lead times in Bangladesh are comparatively high compared to China and Vietnam. The situation is further worsened by the current inconsistent gas supply, he noted.
"Bangladesh has the highest standards and compliance, but in other areas, we are at a disadvantage," commented the knitwear exporters' leader.
Former BKMEA president Fazlul Hoque believes Bangladesh is losing its competitiveness due to the gradual increase in the cost of doing business, while China and Vietnam are aggressively offering lower prices to attract apparel work orders.
"Bangladesh is struggling to compete on price because its policies are not cost-supportive and all forecasts indicate that costs will rise further." Mr Hoque told the FE.
He said if Bangladesh continues to lose its share of the US market, it would be difficult to regain.
OTEXA data shows that China's apparel exports to the US during the first two months of 2024 reached $2.54 billion -- a 0.48 per cent increase from $2.52 billion in the January-February period of 2023.
Similarly, US apparel imports from Vietnam in the first two months of 2024 were $2.36 billion, roughly the same level as in January-February of 2023.
The US's RMG imports from Cambodia in January-February 2024 also increased by 15.34 per cent to $545.20 million, compared to $472.67 million in the same period of 2023.
Compared to the same period of 2023, India's RMG exports to the US market during the first two months of 2024 declined by 13.75 per cent to $759.48 million.
US RMG imports from Indonesia in the first two months of 2024 decreased by 17.25 per cent to $660.35 million, compared to $797.99 million in the same period of 2023, showed the data.
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