Bangladesh's readymade garment (RMG) exports totalled $9.51 billion in the first quarter of FY25, reflecting a 2.8 per cent year-on-year decline despite a 7.64 per cent rise from the previous quarter.
The sector demonstrated resilience, maintaining steady growth despite domestic political unrest, according to stakeholders.
Clothing exports in the corresponding quarter of the previous fiscal year stood at $9.79 billion, according to the Bangladesh Bank's latest report.
At the end of the first quarter of FY25, export earnings from RMG reached $9.51 billion, which was higher than that in the preceding quarter ($8.83 billion), the central bank data shows.
The United States, Germany, and other key European markets accounted for over 71.2 per cent of the exports during July-September of FY25, contributing $6.77 billion.
The United States, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium were the top export destinations in that quarter.
Moreover, in that quarter, net RMG exports - determined by subtracting the raw material import value from the export value - were $5.61 billion or 59.06 per cent of the gross figure, highlighting the sector's significant value addition despite global economic challenges.
Since the emergence of the apparel industry in the country, it has burgeoned into an economic powerhouse, propelling the country onto the global stage as a manufacturing hub.
The sector has blossomed into a juggernaut, accounting for the lion's share of the country's export earnings, creating employment opportunities, and also strengthening women empowerment.
Stakeholders have opined that despite the remarkable growth and success, the RMG industry faces several challenges, including concerns related to labour rights, workplace safety, and environmental sustainability.
Other drawbacks are limited product and market diversity, lack of sufficient backward linkage industry, concentrated market, high lead time, lack of efficiency in producing high-value products, global geopolitical conflicts, energy price hikes, etc. These challenges had changed the sector's overall trade dynamics, stakeholders added.
Nevertheless, the sector made a significant contribution of 7.87 per cent to Bangladesh's GDP in FY24. RMG export earnings in FY24 stood at $36.13 billion, indicating a low growth of 5.36 per cent compared to the previous fiscal year.
In the July-September period of FY25, the sector showed a resilient performance marked by steady export growth despite domestic political unrest, the central bank report said.
However, the sector continues to adapt to changing consumer demands as well as growing focus on sustainability and technological innovation for its long-term success. Among the sub-sectors, woven garment accounted for 35.72 per cent of the total export earnings, whereas knitwear contributed 45.87 per cent.
Product-wise shares of export earnings during July-September of FY25 show among the non-RMG items, leather and leather products accounted for 2.48 per cent, agricultural products 2.34 per cent, jute goods 1.3 per cent, frozen and live fish 0.87 per cent, chemical products 0.77 per cent, raw jute 0.3 per cent, and other products 10.36 per cent.
Shams Mahmud, managing director of Shasha Denims and former president of the Dhaka Chamber of Commerce and Industry, said stability had now been restored in the clothing sector despite the recent unrest and the outlook for the sector was positive.
He urged the government to ensure an uninterrupted gas supply to support the sector's growth.
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