Negative growth in Jan-Nov despite overall surge

Bangladesh's apparel exports to the United States marked a 0.44-percent negative growth during last January-November period despite a surge in apparel-export earnings since September.
The garment-export earnings marked the highest 41-percent growth in November last.
On the other hand, the country's one of the major competitors, India, recorded 4.49-percent and 13.26-percent growth in terms of value and volume respectively during the first eleven months of 2024 over the corresponding period of 2023, according to data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.
Exporters opine that India would be the new concern and challenge for Bangladesh as the neighbouring country shipping higher volumes of garments to the US by offering lower price with its own raw materials.
According to OTEXA data, US imports of apparel from Bangladesh stood at US$6.76 billion, marking a 0.44-percent negative growth, during January-November 2024 compared to the earnings worth US$6.79 billion in the corresponding period of 2023.
In terms of volume, Bangladesh's garment shipments to the US saw a 3.98-percent rise, reaching 2.17-billion square metres during the period.
India fetched US$4.36 billion by making shipments of 1.27-billion square meters of apparel during the first 11 months of 2024, which were US$4.18 billion and 1.12-billion square meters of garments in the corresponding period of 2023, data showed.
Meanwhile, the US Fashion Industry Association (USFIA) 2024 benchmarking study found that American fashion companies are diversifying their apparel sourcing and exploring opportunities in emerging destinations, especially India, amid growing risks and market uncertainty in Bangladesh.
Citing shipping delays, supply-chain disruptions, and 'managing geopolitics and other political instability' related to sourcing as the top five concerns among US brands and retailers in 2024, it said buyers considered India to be more competitive than most other Asian suppliers regarding vertical-integration capability, manufacturing flexibility and agility.
Asked about the trade situation, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, "India is new concern for Bangladesh for many reasons."
A 13.29-percent rise in exports in terms of volume against 4.43-percent rise in value indicates that their exporters are offering lower prices, he explains.
"Bangladesh is facing tough competition with India which is offering goods at lower prices than that of Bangladesh," he says, adding that India has its own raw materials, from cotton to yarn, fabrics and others, while Bangladesh is largely dependent on imported cotton and fabrics, mostly for woven items.
Besides, India enjoys a level playing field in the USA as Bangladesh gets no duty-free market access there for garments.
Cost of production and doing business has been going up in Bangladesh significantly mainly because of price hike in gas and electricity and other complexities, he notes.
Talking to the FE, Mahmud Hasan Khan Babu, former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said 2024 was eventful for Bangladesh as there were national elections, wage hike, labour unrest along with July uprising.
Buyers usually remained 'conservative' during election year and wage hike while some orders also shifted from the country to other destinations during the tumultuous July-August period of last year.
"Business has been becoming more challenging day by day and we are losing competitiveness mainly because of the increasing cost of production due to internal factors," says the trade leader.
However, exporters have raised concerns over a decline in export retention, attributing it to a "significant rise in the cost of doing business".
Both the BGMEA and BKMEA leaders vented concern over the proposed gas-price hike, saying that though there were good flows of work orders in recent times, the possible energy-price hike would have a 'severe' negative impact on the industry.
They also aired fears that export growth might be affected if gas price is enhanced, leading many factories to closure.
According to OTEXA data, Vietnam fetched US$13.77 billion, recording a 4.48-percent growth, during the period over that of US$13.18 billion earnings in the corresponding period of 2023.
The US imports 3.82 billion square meters of garments from Vietnam which was 9.02 per cent higher during January to November of 2024.
Meantime, China recorded a meagre negative growth of 0.30 per cent to fetch US$15.22 billion during the period.
China shipped 8.58 billion square meters of garments to the US, marking 5.50-percent growth, during the period, according to OTEXA data.
The economic superpower's overall apparel imports stood at $72.94 billion, 0.63-percent higher, in the first 11 months of 2024, according to data.

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