Apparel export to US rises 15.44pc in Jan

Bangladesh's apparel export to the US recorded a double-digit growth in January despite a negative trend in the country's overall garment import.
Bangladesh fetched US$867.64 million in January, recording a 15.44 per cent growth, compared to $751.67 million earning in the corresponding month of 2022, according to the data of OTEXA, an affiliate of the US Department of Commerce.
The US overall apparel import in this January declined by 3.44 per cent to $7.26 billion, which was $7.52 billion in January 2022.
Meantime, China and Vietnam - the main competitors of Bangladesh - witnessed negative growth of 24.60 per cent and 0.50 per cent respectively in January 2023, OTEXA data showed.
Industry insiders said high demand for Bangladeshi RMG products, significant rise in prices of raw materials - added to values of finished products, manufacturing of value-added garments, and buyers' confidence in the local industry's resilience and compliance helped the export to grow.
Also, Bangladesh benefitted from the US buyers' shift from China and China plus policy, they added.
When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said the performance in the US market was 'very good' - considering the US overall import along with local and global economic situations.
The BGMEA president highlighted their efforts, including manufacturing value-added garments as well as product diversification - especially producing non-cotton-based garment, behind the growth.
"Besides, high prices of raw materials raised the apparel unit prices, while local makers are producing value-added items that also helped to raise the earning."
Furthermore, Bangladesh bagged some orders, shifted from China amid the China-America trade spat, he noted.
Also, the foreign buyers showed their confidence in sourcing apparel from the country, as the local entrepreneurs kept supply chain activities running immediately after the lockdown enforced during the Covid pandemic.
Moreover, the industry has made a huge investment in improving workplace and other safety works.
However, orders decreased in terms of quantity in the recent months. The BGMEA issued about 22 per cent and 26 per cent less UD (utilisation declaration) in last November and December respectively compared to the same months of 2021, he added.
The OTEXA data for the month of January 2023 also showed the same trend.
Bangladesh's shipment in January, in terms of quantity, meanwhile, witnessed a negative growth of 5.60 per cent to 266.41 million square-metres (sq-m), which was 282.22 million sq-m in January 2022.
Talking to the FE, Mahmud Hassan Khan, managing director of Rising Group, said export to the US market would continue to rise further mainly because of the shift from China.
China's share in the US apparel market was 37.32 per cent in 2013, and it fell to about 21.75 per cent in 2022, according to data.
On the other hand, Bangladesh's share rose to 9.75 per cent last year, which was about 6.20 per cent in 2013.
In January 2023, the US imported apparel items worth $1.44 billion from China that was $1.91 billion in January 2022.
Vietnam exported apparel items worth $1.26 billion in last January, which was $1.27 million in January 2022, data showed.
Meanwhile, the US apparel import from India in last January witnessed 9.77 per cent growth to $484.98 million, while Cambodia recorded 12.91 per cent negative growth and earned $324.69 million, according to OTEXA data.

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