Bangladesh experienced the most significant decline in exporting readymade garments to the United States compared to its competitor countries in the January-April period of 2024.

According to data released by the US Department of Commerce’s Office of Textiles and Apparel on Thursday, Bangladesh’s apparel exports to the US, its largest export destination, decreased by 14.44 per cent to $2.31 billion, down from $2.70 billion in the same period of 2023.

During this period, apparel imports by the US from Vietnam saw a slight increase of 0.31 per cent, while those from China declined by 4.42 per cent, as per the OTEXA data.

Notably, Vietnam surpassed China to become the largest RMG exporter to the US during this period.

Exporters have noted that despite a rise in US demand for apparel, Bangladesh struggled to expand its market share, mainly due to longer shipment times and higher production costs.

Buyers have increasingly favored Vietnam and China due to their shorter delivery times, they said.

OTEXA data revealed a decrease in US apparel imports from China to $4.32 billion in January-April 2024, down from $4.52 billion in the same period the previous year.

RMG imports from Vietnam increased to $4.38 billion in the four months of 2024, up from $4.37 billion in the corresponding period of the previous year.

Furthermore, total US imports of readymade garments from around the world in January-April 2024 decreased by 6 per cent to $23.69 billion compared to $25.20 billion in the same period of 2023.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that despite increased demand, Bangladesh struggled to capitalize on it due to prolonged shipment times caused by customs-related delays and production slowdowns due to energy shortages.

Hatem highlighted that while major apparel manufacturing countries like China and Vietnam faced negative export growth globally, most other countries, except Bangladesh, had started to narrow this gap.

He pointed out that Vietnam had already shifted to a positive trajectory in exporting RMG to the US market.

‘In Bangladesh, our factories are operating at 60-70 per cent capacity due to energy shortages, prompting buyers to redirect orders to China and Vietnam for quicker deliveries,’ he said, also mentioning the challenges factories face in accepting orders at current prices due to rising utility costs and workers’ wages.

Regarding other competitor countries, the OTEXA data indicated a 5.02 per cent decline in India’s RMG exports to the US market to $1.66 billion in the four months of 2024 compared to $1.75 billion in the same period of the previous year.

RMG imports by the US from Indonesia in the four months of 2024 decreased by 8.46 per cent to $1.38 billion compared to $1.51 billion in the same period of 2023.

However, US apparel imports from Cambodia in January-April 2024 increased by 7.92 per cent to $1.03 billion compared to $951.93 million in the same period of 2023.