Bangladesh’s apparel exports to the United States, the largest destination for the country, saw a significant decline in the first five months (January-May) of 2024, dropping to $2.90 billion from $3.31 billion in the same period of 2023.

Data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce revealed a 12.31 percent year-over-year decrease for Bangladesh compared to the same period in 2023.

This decline is evident in both value and volume, with Bangladesh shipping 6.22 percent fewer garments—956.55 million square meters—during January-May 2024, compared to 1.01 billion square meters in the same period the previous year.

The US import figures showed that Bangladesh’s key competitors in ready-made garments, China and Vietnam, outperformed it.

Exporters attributed their loss of market share in the US to several domestic issues, including long lead times, inconsistent energy supplies, and high operating costs.

These factors, they said, give Vietnam an advantage in the US market.

US apparel imports from Vietnam totaled $5.41 billion in January-May 2024, a 1.48 per cent year-over-year decrease, according to OTEXA data released on July 3.

During the same period, China’s apparel exports to the US declined by 5.81 per cent to $5.43 billion.

OTEXA data shows that overall US apparel imports fell by 6.0 percent to $29.62 billion in the first five months of 2024, down from $31.51 billion in the same period of 2023.

Exporters said that buyers were increasingly concerned about Bangladesh’s energy security.

Reliable labor and energy supplies, once major strengths for local apparel growth, are now problematic, they said.

Exporters claimed that gas and electricity shortages were preventing factories from operating at full capacity.

Additionally, increased Chinese investment in Vietnam has enhanced its ability to capitalize on China’s shift in focus, leading to higher Vietnamese exports to the US market, they mentioned.

‘Buyers are now place orders with shorter lead times due to various factors. This gives China and Vietnam, with their shorter lead times and more consistent energy supplies, a competitive edge,’ Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said.

Hatem added that the current gas crisis has made it difficult to meet lead times.

Rising gas prices and recent wage hikes further erode production cost competitiveness, he said.

‘In many instances, we are forced to decline work orders because the offered prices fall below our production costs,’ Hatem said.

OTEXA data shows that US RMG imports from Cambodia grew by 7.75 percent to $1.28 billion in January-May 2024 compared to the same period in 2023.

Meanwhile, India’s RMG exports to the US declined by 2.06 percent to $2.08 billion, and Indonesia experienced a 10.49 percent drop to $1.64 billion during the same period.