Bangladeshi-made manmade fibre (MMF) garments, which remained largely static in exports to the United States over the past two years, are expected to gain momentum amid ongoing trade tensions between major producing countries, industry insiders said.

Experts said that now was an opportune time to invest in the country’s backward linkage textile sector, particularly in MMF-based garment manufacturing, and added that Bangladesh currently enjoyed a 20 per cent additional duty advantage in the US market, which positioned it to capture a larger share of orders shifting from China and India.

Industry insiders observed that Vietnam was not expanding its garment production capacity, while Bangladesh had the capability to increase output further if adequate policy support was provided.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country exported MMF garments worth $1.54 billion to the US in 2024, nearly unchanged from $1.55 billion in 2023.

By comparison, US imports of MMF apparel from Bangladesh were only $764.92 million in 2020.

Abdullah Hil Nakib, deputy managing director of Team Group, said that of the country’s total US garment exports of $7.50 billion, around $1.2–1.3 billion came from MMF apparel, most of the raw materials for which are imported, primarily from China.

‘Due to the trade and duty tensions between the US and China, orders are likely to shift to other destinations,’ he said, adding that Bangladesh now has the opportunity to focus on high-value MMF items.

Nakib also said that exports of MMF garments such as jackets and outerwear have been growing over the past few years.

He said that while most MMF garments were exported to the European Union, the EU’s ESG and due diligence regulations encouraged local exporters to diversify their markets.

‘The reliance on Chinese raw materials poses some challenges for exporting to the US, but this is the right time for Bangladesh to prepare for post-LDC graduation challenges,’ Nakib said.

Following negotiations with the US, the additional duty on Bangladeshi exports was reduced to 20 per cent from 35 per cent, placing the country on a more equal footing with major competitors—lower than China’s 30 per cent and India’s 25 per cent.

Currently, Bangladeshi readymade garments exported to the US face tariffs of 36.5 per cent for cotton-based items and 52 per cent for MMF products, which include the 20 per cent reciprocal duty plus existing tariffs of 16.5 per cent and 32 per cent, respectively.

Shovon Islam, managing director of Sparrow Group, said Bangladesh could become more competitive in MMF garment manufacturing if raw materials were sourced locally.

Sayeed Ahmed Chowdhury, director at Square Denim, said that due to limited local raw materials, most MMF garments are blended with cotton despite high demand.

Nevertheless, he said a number of entrepreneurs are investing in the MMF segment to capitalise on growing global demand.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said that following successful negotiations on reciprocal tariffs, Bangladesh is now in a stronger position, with local exporters receiving more inquiries from buyers.

‘There is optimism about future business, and now is the time to invest further in the textile sector,’ he said.

Former BTMA president A Matin Chowdhury emphasised the need for diversification within the textile sector, including the production of blended and non-cotton-based yarns and fabrics, to sustain business and meet emerging challenges.

Industry insiders said that Bangladesh’s synthetic yarn industry is relatively small and cannot meet domestic demand for MMF yarns, requiring the import of most manmade fibres for apparel exports.

As of 2023, the country had 19 synthetic spinning mills, including eight acrylic spinning mills. Synthetic yarn producers commonly import pellets to blend with natural fibres and create mixed yarns.

Insiders expect demand for these yarns to increase in the future and are working to boost domestic MMF yarn production, seeking necessary policy support from the government.

According to a USITC report, while cotton garments still dominate US imports by value, the share of MMF garments from Bangladesh has gradually grown.

In 2013, MMF garments accounted for 17 per cent of US imports from Bangladesh, rising to 25.3 per cent by 2023.