Denim exports to US, EU up 56pc, 32pc

Locally-made denim items' exports to the two major destinations - the US and the European Union (EU) - during the first two months of 2025 witnessed significant growth of over 56 per cent and more than 32 per cent, respectively.

Bangladesh fetched $138.75 million from denim exports to the US in this period, up by 56.33 per cent from the earnings of $88.75 million in the corresponding period of 2024, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

US imports of denim items from Mexico, Pakistan, Vietnam, and China recorded 16.27 per cent, 33.29 per cent, 6.49 per cent, and 6.99 per cent growth, respectively, in this period.

On the other hand, Bangladesh's denim exports to the EU during this period stood at $285.52 million, recording 32.43 per cent growth from $215.60 million earned in the corresponding months of 2024.

Pakistan, the second largest denim exporter to the EU, logged 48.11 per cent growth in this period, followed by Turkey at 0.06 per cent, Tunisia at 4.68 per cent, and Cambodia at 55.24 per cent, data shows.

Bangladesh remained the top denim supplier both to the US and the EU in 2024 as the country fetched the highest $675.65 million and $1.28 billion, respectively, from the two destinations, data shows.

Yeasin Al Faisal, manager at Argon Denims Ltd, told The Financial Express the denim business is growing and they are not facing any impact of the new US tariff regime as they mostly ship goods to the EU.

Argon Denims is participating in the 18th edition of Bangladesh Denim Expo that kicked off on Monday at the International Convention City Bashundhara (ICCB) in the capital.

Faisal said they participated in the show to display their products and innovation and also to know about what other suppliers are showcasing.

The two-day event aims at helping the industry enhance its capacity and develop innovation to navigate the uncertain times of tariff and trade war.

A total of 57 exhibitors from 13 countries, including Bangladesh, India, Pakistan, China, Turkey, Spain, Italy, Vietnam, and the US, joined the show to display their latest innovation and goods.

Sanaul Haque, executive director of Azlan Denim Ltd, a concern of Sim Group, said they are expanding their capacity as the demand for denim items is increasing.

Currently, they produce 1.6 million yards of denim fabrics monthly, which will increase to 2.50 million by July, he added.

Abdul Kader Khan, managing director of Khan Accessories and Packaging Company Ltd, said they are exhibiting their accessory items as some of their buyers who have denim business worldwide insisted them to join the fair.

As denim exports are growing, he expects to get new buyers too.

When asked, Chao Ji, sales manager of Black Peony Textile Co Ltd, a Chinese denim fabric producer, said they have been participating in the denim show for the last six years and have their own office in Dhaka.

"Bangladesh is a potential market, and business is growing slowly here with good prices," he said.

Brant Tong, sales manager of XDD Textile, a Vietnamese denim fabric maker, said there are a number of denim factories and washing plants in Bangladesh.

"So, there is huge demand for denim fabric, and we are here in search of more business opportunities," he said.

Speaking about the US new tariff regime, he said business in Vietnam slowed in recent times with a decline in work orders as buyers are now in a wait-and-see situation.

This is because no one knows what would happen after the three-month pause of the proposed US tariffs, added Tong.

The majority of his factory's denim production is destined for the US, he said, adding that buyers are waiting to see further action or negotiations with the US.

He also said some of the buyers have already postponed their bookings.

Md Amdadul Hoque, country representative (Bangladesh) of Diamond Denim, a Pakistani denim factory, said business in May and June usually remains slow and that is what is happening now.

He, however, said they have to bear the cost of an additional 10 per cent hike in tariffs imposed by the US.

Nauman Ahmad, general manager of marketing (denim business) at Azgard Nine Limited, another denim fabric maker based in Pakistan, said there are uncertainties in the US market for all supplier countries - not only Pakistan but also others in Asia.

This is the biggest challenge for the current time, he said.

They have business mostly with the EU, he said, adding their business is moderate and they have not faced any negative impact for the US tariff so far.

Munni_fe@yahoo.com