Q1 RMG exports to EU surge 33pc

The country has witnessed an impressive 33 per cent growth in shipping readymade garments to the European Union (EU) in the first quarter of 2025, fetching 5.68 billion euro.

According to the latest Eurostat data released on Friday, Bangladesh's total apparel exports to the EU rose by 1.41 billion euro during the January-March period, compared to 4.27 billion euro in the corresponding period of the previous year.

On the other hand, knitwear exports posted about 36 per cent growth, earning 3.25 billion euro from around 2.39 billion euro. Woven items also performed strongly, with exports rising approximately by around 30 per cent to 2.43 billion euro from 1.87 billion euro.

In terms of value, Bangladesh surpassed major competitors like China, Vietnam Turkey and India. The EU's total apparel import increased by over 20 per cent to 23.45 billion euro in the first quarter of the current year, compared to 19.44 billion euro in Q1 of 2024.

In terms of volume, Bangladesh's total apparel exports to the EU rose to 3.61 million kilograms during the period, an increase of 24.6 per cent from 2.90 million kilograms in Q1 2024.

When asked, Mahmud Hasan Khan, managing director of Rising Group, said the growth is encouraging both in EU and US markets and they have a healthy flow of work orders. "But we are concerned about the future growth as internal factors have been affecting the sector much more than the external ones," he said.

He pointed out some challenges like gas crisis and pen-down strike by officials and employees of the National Board of Revenue (NBR), saying these are undermining their competitiveness globally.

Mr Khan, also a former leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted the impact of global factors like new US tariff regime and rising air freight charges fuelled by India-Pakistan tension. He stressed the need for addressing local problems urgently.

On the other hand, China sustained its position as the EU's largest apparel supplier with shipments worth 6.35 billion euro during January-March period recording a 29 per cent year-on-year rise. Its exports stood at 4.92 billion euro in Q1 2024, according to Eurostat data.

Turkey saw a slight decline of less than 1 per cent in total apparel exports, fetching 2.26 billion euro, compared to 2.28 billion euro in the same period last year.

The apparel imports from India recorded 27.8 per cent rise to 1.37 billion euro, up from 1.07 billion euro in the corresponding period of last year.

Vietnam's apparel exports to the EU increased by 22 per cent to 1.08 billion euro. Pakistan recorded a 32.8 per cent rise in total garment exports, reaching 1.03 billion euro, while Cambodia reported the fastest growth among all listed suppliers, with EU apparel imports rising by 37.8 per cent to 1.11 billion euro.

Data analysis, however, shows that Bangladesh's RMG export to its largest destination, the EU, may face tough competition as competitors like China, Vietnam, Cambodia, Pakistan and Sri Lanka have steadily expanded their presence in the EU over the past decade.

The global trade race may intensify further in the coming days, especially following the new US tariff regime, as the reciprocal tariffs on higher scales may force the players to diversify their shipment destinations to the 27-nation bloc, exporters said.

For Bangladesh, which holds more than 20 per cent share of the EU apparel market, such diversion could intensify price competition, squeeze profit margins and erode profitability, they predicted.

Meanwhile, Bangladesh's apparel exports to the United States, its single-largest market, registered double-digit growth both in value and volume during the first quarter of 2025. The readymade garment exports reached US$2.22 billion, marking 26.66-percent growth from US$1.75 billion in the corresponding period of 2024, according to OTEXA data, an affiliate of the US Department of Commerce.

In terms of quantity, shipments totaled 733.98 million square metres of apparel, up by 25.24-per cent from 586.04 million square metres in the corresponding period of 2024.

Munni_fe@yahoo.com