Bangladesh’s apparel exports to the United States rebounded strongly in January 2025, recording a 45.9 per cent year-on-year growth, according to data released on Tuesday by OTEXA, an affiliate of the US Department of Commerce.

The country earned $799.65 million from readymade garment (RMG) exports to the US in January, up from $547.95 million in the same month last year. In terms of volume, shipments rose by 49.2 per cent to 261.29 million square meters.

Industry experts noted that the sharp increase was partly due to a weak base in January 2024, when exports had declined by 36 per cent amid sluggish economic conditions and excess inventory among US retailers.

They also pointed to a possible rush by importers to clear shipments ahead of higher tariffs imposed by the Trump administration.

Bangladesh has outpaced all major competitors in apparel exports to the United States, recording an impressive 45 per cent growth in January 2025.

This growth exceeds that of Indonesia 41.7 per cent, India 33.64 per cent, Vietnam 19.9 per cent and China 13.12 per cent.

Despite global economic challenges, Bangladesh’s competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices have likely contributed to this robust performance.

According to data from OTEXA, Bangladesh earned $7.34 billion from ready-made garment (RMG) exports to the US in 2024, slightly up from $7.28 billion in 2023, though still below the record $9.73 billion in 2022.

Amid slower growth last year, Bangladesh’s share of the US apparel market fell to 9.26 per cent in 2024, down from 9.7 per cent in 2022.

The rise in exports from countries like Indonesia, India and Cambodia signals that US buyers are diversifying their sourcing due to competitive costs and geopolitical considerations.

In contrast, China’s slower growth reflects shifting dynamics in global sourcing patterns, influenced by factors such as trade policies, production costs, and sustainability demands.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said that the US market is recovering after a prolonged period of weak performance, with January 2024 marking a low base.

He described the 45 per cent growth as ‘very good’ considering the internal challenges, including the gas crisis, banking issues, law and order concerns, and ongoing labour unrest.

However, he stressed that Bangladesh’s ability to capture the opportunity created by shifting work orders from China depends on resolving these internal factors.

Hoque further highlighted that while the labour situation has improved, there remains a sense of insecurity, and the law and order situation is not yet fully stable. The industry continues to suffer from poor gas supply and banking problems.

Abdullah Hil Rakib, former vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed optimism about Bangladesh’s potential to achieve the $100 billion RMG export target, calling it a matter of time.

He emphasised the need for long-term policy support to realise this goal.

Exporters believe that Bangladesh could perform even better if there were uninterrupted gas supply and no production losses due to labour unrest.

Investments in environment-friendly processes, product diversification, and value-added items have positioned the industry for further growth.

Looking ahead, some exporters view India as a new challenge for Bangladesh, as India is shipping a higher volume of apparel to the US at lower prices, using its own raw materials.

According to OTEXA, India’s exports to the US totalled $473.27 million in January 2025, with a 36.77 per cent increase in volume compared to January 2024.

Vietnam recorded $1.44 billion in exports, a 19.9 per cent growth, while China earned $1.60 billion, reflecting a 13.7 per cent increase.

Overall, US apparel imports in January 2025 saw a 19.46 per cent year-on-year growth, reaching $7.20 billion, indicating continued demand for global apparel despite ongoing challenges.