Bangladesh experienced the most severe decline in apparel exports among its competitors in the European Union market in the first two months of 2024, following a similar trend observed in the United States market during the same period.

In January-February 2024, Bangladesh’s apparel exports to the 27-nation economic bloc of the EU saw a decline of 26.74   per cent, totaling 2.48 billion euros compared to 3.39 billion euros in the corresponding period of 2023, as reported by Eurostat, the statistical office of the European Union.

Exporters noted that despite a rise in global demand for apparel, Bangladesh was reaping minimal benefits from this surge due to prolonged lead times and escalating production costs.

Bangladesh witnessed a decline in its knitwear exports to the EU in January-February 2024, totaling 1.42 billion euros, down from 2 billion euros in the corresponding period of 2023.

Similarly, the country’s woven garment exports to the EU in the first two months of 2024 also decreased to 1.06 billion euros, compared to 1.38 billion euros in the same period of 2023, Eurostat data showed.

Recent data from the US Department of Commerce’s Office of Textiles and Apparel reveals that Bangladesh has significantly lagged behind its competitors in apparel exports to the US market during the January-February period of 2024.

According to OTEXA data, Bangladesh’s apparel exports to the US in January-February 2024 declined by 19.24 per cent, contrasting with China’s export growth of 0.48   per cent   and Vietnam’s increase of 0.14   per cent in the same period.

‘It’s noteworthy that while data from major import destinations indicates a worsening performance for Bangladesh, the Export Promotion Bureau of Bangladesh reports positive growth,’ remarked Mohammad Hatem, cxecutive president of the Bangladesh Knitwear Manufacturers and Exporters Association.

He said that inquiries from western buyers had increased in recent months, but many of the manufacturers have failed to entertain their (buyers) orders due to offering low prices by the buyers.

Buyers are now looking for a shorter lead time, but Bangladesh’s shipment time has increased to 89-90 days from 50-60 days due to gas crisis, so many of the western buyers are placing their orders to Vietnam and China, Hatem said.

Bangladesh losing export competitiveness in US market

According to Eurostat, clothing imports by the EU from various countries saw a decrease of 15.31 per cent to 12.53 billion euros in the first two months of 2024, down from 14.80 billion euros in the same period of 2023.

Specifically, apparel imports from China to the EU in January-February 2024 dropped by 13.12 per cent to 3.33 billion euros, compared to 3.83 billion euros in the same period of 2023.

In the first two months of 2024, the EU’s apparel imports from Turkey decreased by 10.69 per cent to 1.54 billion euros, down from 1.72 billion euros in the same period of the previous year.

Meanwhile, India’s RMG exports to the EU in January-February 2024 experienced a decline of 27.83 per cent to 621.26 million euros, compared to 860.90 million euros in the same period of 2023.

Additionally, apparel imports from Vietnam to the EU in the first two months of 2024 decreased by 10.77 per cent to 596.70 million euros, down from 668.77 million euros in the same period of 2023, as per the data provided.