RMG exports to EU jump by 61% to €1.91 billion in January

(Highlights)

• RMG exports to EU bouncing back
• Order shifting from China benefits Bangladesh
• RMG exports to US also improving
• Law and order seen remains a concern

Bangladesh's apparel exports to the European Union began 2025 with a remarkable 60.9% increase, reaching €1.91 billion (equivalent to Tk25,178 crore) in January, compared to €1.19 billion in the same month a year ago.

Of these, knitwear exports surged by 64.2%, while woven apparel exports increased by 56.3%, according to data from Eurostat, the statistical office of the EU, released on Tuesday (20 March).

In terms of quantity, Bangladesh's readymade garment exports to the 27-nation economic bloc also witnessed a substantial surge in January 2025, increasing by 58.1% to 126.86 million kilograms from 80.25 million kilograms in the same month of the previous year.

This strong growth solidifies Bangladesh's position as a key supplier to the European market, driven by competitive pricing, preferential trade facilities under Everything But Arms, and improvements in production capacity.

The president of the Bangladesh Knitwear Manufacturers and Exporters Association, Mohammad Hatem, told TBS that this growth is encouraging for exporters, as it indicates that the market is bouncing back to a positive trend.

"The overall growth has been driven by increased capacity, efficiency, and productivity," he said.

Hatem also said a good number of work orders are shifting from China to other countries, with Bangladesh being one of the key beneficiaries.

He, however, expressed concerns over the slow progress in improving the law and order situation, which he fears can affect buyers' and investors' confidence.

The business leader called on the government to ensure an adequate supply of utilities including gas and electricity and make it prices at affordable levels to increase exporters' competitiveness. 

The BKMEA president further noted that not only the EU market but also the US market is improving after a prolonged period of slowdown in business.

Hatem explained that thanks to economic improvements in major markets, consumers are purchasing more apparel items.

The Eurostat data shows that the EU's overall apparel imports from different countries witnessed a significant surge in January 2025, with total imports reaching €8.29 billion, up 31.9% from €6.28 billion in January 2024.

China, the largest apparel supplier to the EU, maintained strong growth, with total exports increasing by 40.9% to €2.38 billion in January 2025.

The country's knitwear exports to the EU grew by 45.3% to €1.23 billion, while woven exports rose by 36.4% to €1.14 billion.

Bangladesh remained the second-largest apparel exporter to the EU after China.

The EU's apparel imports from Turkey in January 2025 increased by 5.4% to €874.09 million from €829.21 million in the same month of 2024.

Cambodia's apparel exports to the EU in January 2025 surged by 72.5% — the highest among major exporting countries — reaching €420.9 million. Knitwear exports rose by 71.6% to €256.2 million, while woven apparel jumped by 73.9% to €164.7 million.

The EU's apparel imports from India increased by 44.5% year-on-year, reaching €397.7 million in January 2025.

Vietnam's apparel exports to the EU in January 2025 climbed by 34.3% to €398.6 million, with knitwear rising by 26% and woven apparel increasing by 40.7%.

Exporters stated that Vietnam's steady expansion underscores its appeal as a reliable sourcing hub, benefiting from a well-developed supply chain and free trade agreements such as the EU-Vietnam Free Trade Agreement, which offers preferential tariffs on many textile products.

Pakistan's apparel exports to the EU grew by 31.9%, reaching €347.7 million in January 2025.

Pakistan's woven apparel exports to the EU increased by 42.8% to €175.6 million, while knitwear grew by 22.5% to €172.1 million.