RMG sees double-digit growth in major markets

Bangladesh's apparel exports to major markets have achieved double-digit growth over the first eight months of the current fiscal year, thanks to the growing demand by the brands and retailers.

Key export destinations, including the European Union (EU), the United States (US), and Canada, have grown significantly. 

Meanwhile, the UK and non-traditional markets have also performed well with modest growth, according to country-wise export data from the Export Promotion Bureau (EPB) for the July- February period of the 2024-25 fiscal year (FY).

Apparel exporters noted this is the second time the sector has experienced such growth since the post-Covid period. They also highlighted there are opportunities for further export increases if they receive adequate utility supplies and government policy support to ease the business environment.

They also mentioned that the business has maintained growth despite the political situation changes on 5 August last year following a student-led uprising and catastrophic floods. 

According to EPB data, Bangladesh's ready-made garments (RMG) exports grew by 10.64% globally, reaching a total of $26.79 billion during the reporting period. 

The European Union remained the largest market, accounting for 50.10% of total RMG exports, valued at $13.42 billion. Exports to the United States reached $5.06 billion, representing 18.91% of the total, while Canada accounted for $845 million with a 3.16% share. 

The UK also remained an important market, with exports worth $2.93 billion, comprising 10.94% of total RMG exports during this period.

In terms of growth, RMG exports to the EU increased by 11.53% year-on-year, while the USA saw a strong increase of 16.38%, and Canada registered growth of 14.12%. However, exports to the UK exhibited a more modest growth rate of 3.74%.

Within the EU, Germany stood out as the largest destination, with exports valued at $3.38 billion, followed by Spain at $2.35 billion, France at $1.43 billion, Italy at $1.05 billion, Poland at $1.13 billion, and the Netherlands at $1.43 billion. 

Notable growth rates were recorded in Germany at 11.03%, the Netherlands at 25.06%, Poland at 12.06%, Denmark at 14.58%, and Sweden at 21.12%.

Bangladesh's RMG sector also demonstrated growth in non-traditional markets, with an overall increase of 6.23%, as total exports reached $4.52 billion, representing 16.90% of Bangladesh's total RMG exports. 

Among these markets, Japan led with imports worth $839 million, followed by Australia at $582 million and India at $478 million. Exports to Turkey and Mexico were also significant, amounting to $305 million and $229 million, respectively. 

Growth rates were particularly strong in India at 18.58%, Mexico at 25.14%, and Turkey at 32.20%. 

While growth in Japan, Australia, India, Turkey, and Mexico was positive, exports to Russia, Korea, the UAE, and Malaysia declined.

"The ongoing growth in exports continues to depend heavily on the EU and USA, which remain Bangladesh's primary markets," said Mohiuddin Rubel, a former director of BGMEA. 

He emphasised that there is further potential for growth in these areas.

Rubel also noted that the moderate growth in non-traditional markets highlights the importance of further research and strategic focus, as these regions offer substantial expansion potential. 

"Diversifying into these markets could also help reduce reliance on traditional destinations," he added. 

Rubel further observed that persistent global trade tensions are reshaping the international trade environment, creating opportunities that Bangladesh could capitalise on, provided the country enhances its productive capacity.

He stressed the need for dedicated investment in backward linkages to strengthen and sustain the competitiveness of Bangladesh's RMG sector. 

"Remaining competitive is essential for ensuring long-term growth and stability," he added.