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27 May 2022

Business Insider Bangladesh

Apparel export witnessing a boom in US market

Jannatul Ferdushy || BusinessInsider

Published: 13:57, 4 May 2022   Update: 14:50, 4 May 2022
Apparel export witnessing a boom in US market

Representational image. Photo: Collected

As trade strife is intensifying between the USA and China, Bangladesh is sipping the nectar. The trade war between US and China positively impacted the export of the “Made in Bangladesh” brand.

Moreover, there is a virus contamination fear in China for which buyers don’t feel comfortable sourcing apparel with them. Therefore, Bangladesh is the safest destination at this moment before the prime buyers across the globe, industry insiders said.

In March, apparel export to the USA increased by 81.69 percent year on year and fetched $815 million. At the same time last year, export to the USA was $449 million, according to Bangladesh Garments Manufacturers and Exporters Association (BGMEA) data.

“Bangladesh has become a dependable country in making garments for the global citizens. So, in case of any adverse situation in the competing countries, Bangladesh will remain as the buyers’ most preferred country for apparel sourcing destination,” Shahidullah Azim, vice president of BGMEA, said.

In addition, “We all know, a cool relation over trade between the US and China has been going on for a long time. To that end, Bangladesh is reaping the advantage,” he said.

Meanwhile, the country has improved the quality of its apparel products and adopted advanced technologies and simultaneously branded the “Made in Bangladesh,” attracting the global buyers too, he continued.

Besides, in the Russia-Ukraine war, America supports Ukraine against China and Russia. Therefore, currently, along with the old American buyers, some new partners are also gathering in Bangladesh, believe the industry insiders.

Zainul Abedin, proprietor of AAA TRIMS World said, “Yes, it’s true that American work orders are increasing from the last couple of months. Recently it rose further. The war on Ukraine may be a reason for that.”

However, in March apparel exports to the UK increased by 56 percent, Canada 77 percent, the EU by 63 percent, respectively. However, Bangladesh’s shipments to the new markets rose by 30 percent. In the meantime, exports to Russia declined by 59 percent.

Bangladesh is the top denim and cotton trousers exporter to the USA and the third top knit shirt and underwear exporter in that market.

In 2021 Bangladesh's export of garments and textiles in the USA market stood at $7.40 billion and grabbed 4th position, according to the Office of Textiles and Apparel (OTEXA), an affiliate of the US Department of Commerce.

However, Bangladesh mainly exports denim, cotton trousers, shirts, skirts, blouses, underwear and brassieres, etc. to the world markets.

The readymade garment sub-sector is fetching the majority of the foreign currency in the country. In March, the garment and clothing fetched $3.93 billion, of which $815 million came from the USA.

In the first nine months until March of the current fiscal year, Bangladesh fetched $31.42 billion from apparel export globally.

As per the work orders trend, by the end of the year, Bangladesh will be able to export more than $1 billion a month. In that case, the country will earn more than $12 billion yearly from the USA market, alone.