Bangladesh’s apparel exports to the United States faced a decline in the first nine months of 2024, in stark contrast to major competitors like China, Vietnam, and India, which are seeing strong growth.

According to data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, released on Thursday, Bangladesh’s exports to the US—its largest single market—fell by 6.28 per cent during the January-September period, amounting to $5.21 billion.

This is a drop from the $5.77 billion earned during the same period in 2023.

The decrease was evident in both the value and volume of exports. In terms of volume, Bangladesh exported 1.49 per cent fewer garments, totalling 1.73 billion square metres, compared to 1.76 billion square metres in the corresponding period of the previous year.

Despite the drop, Bangladesh maintained its position as the third-largest apparel exporter to the US market, holding a 9.07 per cent share.

China and Vietnam occupied the top two positions with shares of 21.06 per cent and 18.75 per cent, respectively.

Vietnam, India, Cambodia, and Pakistan achieved positive growth during the period, while China recorded a 2.28 per cent decline.

Exporters attribute Bangladesh’s loss of market share and inability to fully capitalise on the shift away from China to several domestic issues, including extended lead times, inconsistent energy supplies, and high operational costs.

Meanwhile, a study by the US Fashion Industry Association (USFIA) highlighted that American fashion companies are diversifying their sourcing and exploring emerging markets, particularly India, due to growing risks and uncertainties in Bangladesh.

The study cited shipping delays, supply-chain disruptions, and ‘managing geopolitics and other political instability’ as top concerns for US brands and retailers in 2024.

Buyers view India as more competitive than many other Asian suppliers due to its vertical integration, manufacturing flexibility, and agility.

India’s apparel exports to the US have shown improvement, with a slight increase of 0.47 per cent to $3.63 billion.

Cambodia and Pakistan also saw rises of 7.09 per cent and 2.32 per cent, to $2.78 billion and $1.58 billion, respectively.

US apparel imports from Vietnam reached $11.21 billion in January-September 2024, marking a year-over-year growth of 1.22 per cent, according to OTEXA data.

Meanwhile, China’s apparel exports to the US declined by 2.28 per cent to $12.50 billion.

Overall, US apparel imports fell by 2.57 per cent to $59.32 billion in the first nine months of 2024, down from $60.89 billion in 2023.

However, in terms of volume, US apparel imports rose by 2.57 per cent, with increases of 4.06 per cent from China, 6.66 per cent from Vietnam, 9.58 per cent from India, 11.43 per cent from Cambodia, and 1.63 per cent from Pakistan.

Exporters in Bangladesh report challenges due to gas and electricity issues, with many factories unable to operate at full capacity. Recent unrest has further impacted the sector.

Increased Chinese investment in Vietnam has strengthened its position in the US market, while some orders are also shifting to India.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), noted that all countries, including the EU and US, were impacted by weak global demand, which is now improving.

He mentioned that the work order situation has been showing an upward trend in recent months despite price challenges, with local yarn prices also rising.

Echoing Hoque, Mahmud Hasan Khan Babu, managing director of Rising Group, said that the work order outlook for January-February 2024 is ‘not bad’. However, securing the desired prices remains challenging, often depending on negotiation skills, and many businesses accept lower prices just to keep operations running.

Exporters expressed concern that Bangladesh’s internal issues are causing it to lag, with buyers increasingly favouring shorter lead times.

This has placed China and Vietnam, with their quicker lead times and reliable energy supplies, in a stronger position.

The ongoing gas crisis has exacerbated the situation, making it difficult to meet lead times.

Garment manufacturing is a time-sensitive industry, with exporters facing challenges in securing raw materials and opening back-to-back LCs due to banking issues.

Meeting production timelines has been increasingly difficult.

There are concerns among exporters that work orders could shift due to labour unrest, which has recently disrupted operations.

According to industry sources, a total of 37 ready-made garment factories in key industrial areas—including 32 in Gazipur and Mymensingh and five in Savar, Ashulia, and Zirani—were forced to halt operations on Thursday due to worker protests.