Bangladesh garment exports surge, doubling growth in the U.S. market

Bangladesh, as the worlds second-largest apparel exporter, has shown remarkable performance in textile exports. In 2023, this South Asian country achieved $47.3 billion in garment exports, significant growth from $32.9 billion in 2018.

Ready-made garments dominate exports

According to data from the Bangladesh Export Promotion Bureau, Bangladeshs total exports in the first half of the 2024 fiscal year slightly increased to $27.54 billion. Despite stagnant growth in major export markets such as the EU, the US, Germany, India, Italy, and Canada, ready-made garments still accounted for a massive 85% of total exports. This proportion highlights Bangladeshs deep economic reliance on the garment industry while also exposing multiple internal and external challenges, including power and energy shortages, political instability, and labor unrest.

Knitwear contributed over 47% to Bangladeshs total export earnings in 2023, becoming its largest source of foreign exchange. The growth in ready-made garment exports to $47.38 billion, accounting for nearly 85% of total exports, demonstrates Bangladeshs strong competitiveness in the global apparel market.

Exports to the US doubled

Notably, Bangladeshs garment exports to the US nearly doubled over the past five years, growing from $5.84 billion in 2018 to over $9 billion in 2022 and reaching $8.27 billion in 2023. This growth indicates Bangladeshs significant achievements in trade with one of the worlds largest apparel consumer markets.

The rapid rise of the denim industry

In the denim industry, Bangladesh has surpassed China within just a few years to become the largest denim exporter to European and American markets. From January to September 2023, Bangladeshs denim exports to the EU reached $885 million, while exports to the US also surged, showcasing Bangladeshs strong competitiveness in this niche market.

Expansion into non-traditional markets

Additionally, Bangladesh is actively expanding into non-traditional export markets, with garment exports to these markets growing by 20.54% year-on-year in 2023 to reach $8.87 billion. Exports to Japan and Australia exceeded $1 billion, highlighting Bangladeshs diversified development strategy in the global apparel export market.

China and Bangladesh accelerate FTA negotiations

Regarding trade relations with China, the two countries are speeding up negotiations for a free trade agreement (FTA) aimed at reducing bilateral trade imbalances and strengthening economic cooperation. As Bangladeshs largest trading partner, Chinas FTA with Bangladesh is expected to provide greater market access opportunities for Bangladeshs garment and other industries.

The rapid development of Bangladeshs garment industry and its enhanced competitive position in the global market not only reflect the countrys enormous potential in textile and apparel exports but also provide a significant driving force for its economic growth. With increasing exports to non-traditional markets and deepening trade relations with countries like China, Bangladesh is expected to maintain its leading position in the global apparel export market.