Economy

Bangladesh outraces rivals in apparel export growth in US

Bangladesh outraces rivals in apparel export growth in US

Bangladesh's apparel exporters displayed the sharpest growth in the US in 2022, leaving behind their competitors in the countries such as China and Vietnam, owing mainly to the lingering tariff war between Washington and Beijing and capacity building.  

Last year, apparel imports into the world's largest economy jumped 22.48 percent year-on-year to $99.93 billion, according to data from the Office of Textiles and Apparel (Otexa) of the US Department of Commerce. It was $81.58 billion in 2021.

The country's clothing imports from Bangladesh surged 36.38 percent to $9.74 billion in 2022, up from $7.16 billion in 2021 and $5.40 billion in 2018.

With this, Bangladesh retained its place as the third-largest apparel supplier for the US with a 9.75 percent share, an improvement from 8.76 percent in 2021.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, which represents readymade garment suppliers in the country, thinks there is a huge opportunity for Bangladesh to elevate its share in the global apparel market.

Bangladesh is already the largest denim exporter to the US.

"There are a number of product categories where we have the potential to deepen our penetration," Hassan said, adding that there are still a number of US brands that are yet to source from Bangladesh or are sourcing on a limited scale.

"Although we are exploring ways to diversify our markets, I think we still have a lot of scope for specialisation in the existing markets."

Volume-wise, Bangladesh's shipment was the second-highest among all major suppliers. Only Indonesia was ahead of the country as it displayed a 24.89 per cent year-on-year growth in 2022.

The US's garment import from Bangladesh registered a 20.65 percent year-on-year growth last year, reaching 3.14 billion square metres equivalent (SME), a means of measuring quantities of fabric and garments that are exported or imported. It was 2.60 billion SME in 2021.

China, the top apparel import source for the US with a 21.75 percent market share, posted a 10.83 percent growth to $21.73 billion in 2022. It was $19.60 billion in 2021 and $27.37 billion in 2018, Otexa data showed.

In terms of quantity, the US's imports from China contracted 3.11 percent.

Vietnam remained in the second position in apparel shipment to the US as the Southeast Asian nation fetched $18.24 billion in 2022, which was $12.21 billion in 2018 and $14.37 billion in 2021.

The share of Vietnam in America's total apparel imports increased to 18.26 percent in 2022 from 14.74 percent in 2018.

India and Indonesia registered more than 35 percent export growth last year compared to a year prior. Their share increased to 5.69 percent and 5.61 percent in 2022 from 4.59 percent and 5.40 percent in 2018, respectively.

Cambodia's apparel export jumped 28.46 percent, South Korea's shipment climbed 25.08 percent, Pakistan's receipts rose 24 percent, Honduras's earnings were up 19.85 percent, and Mexico's takings grew 11.50 percent. Their share rose in the US apparel market as well.

Bangladesh's export to the US, the single largest export market for the country, has risen every year as China has been losing its dominance in the global apparel market because of the trade war that began in 2018.

China's share in the global apparel business was 18.2 percent in 2000, 26.6 percent in 2005, and 36.6 percent in 2010. But it declined to 31.7 percent in 2022.

Building up of the capacity and brightening of the image of the largest foreign currency earner following remediation in line with global standards have also helped Bangladesh raise its exports to the US.

Globally, Bangladesh's reputation as a predictable supplier received a major boost during the peak of the coronavirus pandemic as the country kept factories open for most of the time whereas many competitors had kept their industries closed for a longer period.

Bangladesh has already waived the mandatory fumigation requirement for importing cotton from the US, a move that will cut the time and cost needed to bring in the key textile raw materials for importers.

"We are now approaching the US government to consider duty-free market access for the garment items made using cotton from the country. This will benefit US cotton growers and apparel brands and consumers while Bangladesh will have an extra edge," Hassan said.

The BGMEA is also working with the American Apparel and Footwear Association to unlock the potential of Bangladesh's RMG sector by enhancing competitiveness and facilitating trade access to the US market.

Comments

Bangladesh outraces rivals in apparel export growth in US

Bangladesh outraces rivals in apparel export growth in US

Bangladesh's apparel exporters displayed the sharpest growth in the US in 2022, leaving behind their competitors in the countries such as China and Vietnam, owing mainly to the lingering tariff war between Washington and Beijing and capacity building.  

Last year, apparel imports into the world's largest economy jumped 22.48 percent year-on-year to $99.93 billion, according to data from the Office of Textiles and Apparel (Otexa) of the US Department of Commerce. It was $81.58 billion in 2021.

The country's clothing imports from Bangladesh surged 36.38 percent to $9.74 billion in 2022, up from $7.16 billion in 2021 and $5.40 billion in 2018.

With this, Bangladesh retained its place as the third-largest apparel supplier for the US with a 9.75 percent share, an improvement from 8.76 percent in 2021.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, which represents readymade garment suppliers in the country, thinks there is a huge opportunity for Bangladesh to elevate its share in the global apparel market.

Bangladesh is already the largest denim exporter to the US.

"There are a number of product categories where we have the potential to deepen our penetration," Hassan said, adding that there are still a number of US brands that are yet to source from Bangladesh or are sourcing on a limited scale.

"Although we are exploring ways to diversify our markets, I think we still have a lot of scope for specialisation in the existing markets."

Volume-wise, Bangladesh's shipment was the second-highest among all major suppliers. Only Indonesia was ahead of the country as it displayed a 24.89 per cent year-on-year growth in 2022.

The US's garment import from Bangladesh registered a 20.65 percent year-on-year growth last year, reaching 3.14 billion square metres equivalent (SME), a means of measuring quantities of fabric and garments that are exported or imported. It was 2.60 billion SME in 2021.

China, the top apparel import source for the US with a 21.75 percent market share, posted a 10.83 percent growth to $21.73 billion in 2022. It was $19.60 billion in 2021 and $27.37 billion in 2018, Otexa data showed.

In terms of quantity, the US's imports from China contracted 3.11 percent.

Vietnam remained in the second position in apparel shipment to the US as the Southeast Asian nation fetched $18.24 billion in 2022, which was $12.21 billion in 2018 and $14.37 billion in 2021.

The share of Vietnam in America's total apparel imports increased to 18.26 percent in 2022 from 14.74 percent in 2018.

India and Indonesia registered more than 35 percent export growth last year compared to a year prior. Their share increased to 5.69 percent and 5.61 percent in 2022 from 4.59 percent and 5.40 percent in 2018, respectively.

Cambodia's apparel export jumped 28.46 percent, South Korea's shipment climbed 25.08 percent, Pakistan's receipts rose 24 percent, Honduras's earnings were up 19.85 percent, and Mexico's takings grew 11.50 percent. Their share rose in the US apparel market as well.

Bangladesh's export to the US, the single largest export market for the country, has risen every year as China has been losing its dominance in the global apparel market because of the trade war that began in 2018.

China's share in the global apparel business was 18.2 percent in 2000, 26.6 percent in 2005, and 36.6 percent in 2010. But it declined to 31.7 percent in 2022.

Building up of the capacity and brightening of the image of the largest foreign currency earner following remediation in line with global standards have also helped Bangladesh raise its exports to the US.

Globally, Bangladesh's reputation as a predictable supplier received a major boost during the peak of the coronavirus pandemic as the country kept factories open for most of the time whereas many competitors had kept their industries closed for a longer period.

Bangladesh has already waived the mandatory fumigation requirement for importing cotton from the US, a move that will cut the time and cost needed to bring in the key textile raw materials for importers.

"We are now approaching the US government to consider duty-free market access for the garment items made using cotton from the country. This will benefit US cotton growers and apparel brands and consumers while Bangladesh will have an extra edge," Hassan said.

The BGMEA is also working with the American Apparel and Footwear Association to unlock the potential of Bangladesh's RMG sector by enhancing competitiveness and facilitating trade access to the US market.

Comments

ভারতে বাংলাদেশি কার্ডের ব্যবহার কমেছে ৪০ শতাংশ, বেড়েছে থাইল্যান্ড-সিঙ্গাপুরে

বিদেশে বাংলাদেশি ক্রেডিট কার্ডের মাধ্যমে সবচেয়ে বেশি খরচ হতো ভারতে। গত জুলাইয়ে ভারতকে ছাড়িয়ে গেছে যুক্তরাষ্ট্র।

১ ঘণ্টা আগে