Bangladesh’s apparel exports to the United States experienced a remarkable 41.6 per cent year-on-year growth in November 2024, reaching $613.91 million, compared to $433.56 million in November 2023.

This unprecedented growth marked the highest percentage increase of the year, highlighting Bangladesh’s strengthening foothold and competitive edge in the US apparel market during the critical final quarter.

Despite the impressive growth in November, Bangladesh’s cumulative apparel exports to the US in 2024 remained below 2023 levels for most months.

The year began with significant declines, with January recording a steep 36.7 per cent drop, followed by a 14.2 per cent decline in March, according to data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.

The declines in April through August 2024 were relatively modest, with losses ranging between 0.2 per cent and 6.8 per cent, indicating a gradual stabilisation in trade flows after the steep declines earlier in the year.

This trend was followed by a strong recovery in the final quarter, with September 2024 recording an impressive 18.4 per cent growth, further accelerating to a robust 26.7 per cent increase in October, setting the stage for November’s record-breaking performance.

Meanwhile, Bangladesh’s apparel exports to the United States recorded a marginal 0.44 per cent decline during the January to November period of 2024, reflecting the lingering impact of earlier downturns despite the strong recovery in the final quarter.

In contrast, one of Bangladesh’s key competitors, India, achieved 4.49 per cent growth in value and a notable 13.26 per cent growth in volume in apparel exports to the US during the first eleven months of 2024 compared to the same period in 2023.

Exporters expressed concerns that India could emerge as a significant challenge for Bangladesh, as the neighbouring country was shipping a higher volume of garments to the US at competitive prices, leveraging its access to locally sourced raw materials.

According to OTEXA data, US imports of apparel from Bangladesh in the 11 months of 2024 stood at $6.76 billion marking a 0.44 per cent negative growth compared to the earnings worth $6.79 billion in the corresponding period of 2023.

In terms of volume, Bangladesh’s garment shipments to the US saw a 3.98 per cent rise, reaching 2.17 billion square metres during the period.

India fetched $4.36 billion making shipments of 1.27 billion square meter of apparel during the first 11 months of 2024 which was $4.18 billion and 1.12 billion square meter of garments in the corresponding period of 2023, data showed.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque said India’s growing competitiveness as a key concern for Bangladesh’s apparel industry.

India’s 13.29 per cent rise in export volume, compared to a 4.43 per cent rise in value, suggests its exporters are offering lower prices, he explained.

Unlike Bangladesh, India benefits from its own raw material base, including cotton, yarn, and fabric, while Bangladesh remains heavily reliant on imported materials, particularly for woven items, Fazlu said.

He also said that enjoyed a level playing field in the US market, whereas Bangladesh received no duty-free access for garments.

Fazlu added that rising production costs in Bangladesh, driven by higher gas and electricity prices, were further eroding its competitiveness.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former vice-president Mahmud Hasan Khan Babu said that 2024 was a challenging year for Bangladesh, marked by the national election, wage hikes, labour unrest, and the July uprising.

He said that buyers typically remained conservative during election years and wage increases, while some orders shifted to other destinations during the July-August period.

Business is becoming increasingly difficult, mainly due to rising production costs driven by internal factors, which are eroding Bangladesh’s competitiveness, Babu said.

According to OTEXA data, Vietnam saw a 4.48 per cent increase in apparel exports to the US, earning $13.77 billion in the January-November period of 2024, up from $13.18 billion in the same period of 2023.

Vietnam exported 3.82 billion square meters of garments to the US, marking a 9.02 per cent rise in volume.

Meanwhile, China experienced a slight 0.30 per cent decline, generating $15.22 billion in apparel exports to the US during the same period.

However, China’s export volume increased by 5.50 per cent, shipping 8.58 billion square meters of garments to the US.

Overall, US apparel imports reached $72.94 billion, showing a 0.63 per cent increase in the first eleven months of 2024, as per OTEXA data.