RMG exports to US rebound, with over 45pc January growth

Apparel export to the United States, the single-largest market for made-in-Bangladesh clothing, bounced back strongly as January saw a growth of over 45 per cent.

Bangladesh bagged US$799.65 million last January from readymade-garment exports to the US market, marking a 45.9-percent year-on-year growth, according to the data released Tuesday by OTEXA, an affiliate of the US Department of Commerce.

In January 2024, RMG exports to that market fetched US$547.95 million.

In quantity, Bangladesh shipped 261.29 million square meters of apparel to the US market in January 2025, up 49.2 per cent from 175.11 million square meters in January 2024, the OTEXA data show.

Industry experts, however, say January is an 'unusual month' as the base of comparison 2024 January was weak which recorded a 36-percent negative growth for various headwinds.

The reasons for the past setback included a sluggish economy, triggered by the twin crises of the Covid-19 pandemic and the Russia-Ukraine war that left retailers in the USA with excess inventory and they discouraged Western buyers from placing new orders.

They, however, attribute the January rise to the likely attempts by importers to clear shipments before the Trump administration- imposed higher tariffs.

Bangladesh's export growth in January outpaced all other major suppliers, including Indonesia that recorded a 41.70-percent growth, India 33.64 per cent, Vietnam 19.90 per cent and China 13.12 per cent respectively.

Despite global economic challenges, Bangladesh products' competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices have likely contributed to this robust rebound.

According to OTEXA data, Bangladesh's RMG-export earnings were US$ 7.34 billion in 2024, $7.28 billion in 2023 while in 2022, the country's ready-made garment exports to the US hit an all-time high of $9.73 billion.

Amid the slow growth rate last year, Bangladesh's apparel-export share in the US market fell to 9.26 per cent in 2024, which was 9.7 per cent in 2022.

In 2025, the rise in exports from countries like Indonesia, India, and Cambodia indicated that US buyers are diversifying their sourcing influenced by competitive costs and geopolitical considerations.

On the other hand, China's slower growth indicated shifting dynamics in global sourcing patterns while factors such as trade policies, production costs and sustainability requirements continue to shape these trends.

Asked about the growth dynamics, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the US market is getting better after a long time of weaker position while the base of comparison was also weak as January 2024 recorded negative growth.

He, however, terms the 45-percent growth 'very good' considering the ongoing situation, mostly the internal factors that include gas crisis, banking issues and law-and-order situation, while labour unrest still persists in the industry.

"Work-order situation is good followed by a rising demand in US," he says, adding how much Bangladesh could grab the opportunity of shifting work orders from China due to a trade war between China and the US depends on internal factors.

Labour situation has improved but not fully controlled while there is still a feeling of 'insecurity' among people despite an improved law-and-order situation which, according to him, is not up to the required level. The industry is suffering due to poor gas supply and banking issues, too, he explains.

Talking to the FE writer, Abdullah Hil Rakib, former vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), says there are huge opportunities for Bangladesh to achieve the RMG-export target of US$100 billion. It is a matter of time.

"What we need is long-term policy supports," he says on an upbeat note about the prospect.

Exporters say Bangladesh could perform better provided with uninterrupted gas supply and no production loss due to labour unrest last year as there were work orders while industry has invested in environment-friendly processes, product diversification and value-added items.

According to some exporters, while Vietnam is doing ever so well in the USA, India will be a new concern and challenge for Bangladesh as the next-door neighbour is shipping higher volume of apparel there offering lower price by banking on its own raw materials.

According to OTEXA, India received $473.27 million making shipment of 129.58 million square metres of apparel in January 2025. In quantity, India's shipments were 36.77-percent higher compared to that of January 2024.

Vietnam apparel exports fetched $1.44 billion, recording a 19.90- percent growth last month. Vietnam recorded 17.05-percent growth in terms of quantity as the US imported 400.84 million square metres of garment from Vietnam in January 2025.

Meantime, China recorded 13.7-percent growth to $1.60 billion in the month.

China shipped 861.74 million square metres of apparel to the US, marking 9.36-percent growth, in January 2025.

The overall US apparel imports during the first month of the 2025 calendar year marked 19.46-percent year-on-year growth to US$7.20 billion.

munni_fe@yahoo.com