Bangladesh Defends Second Spot Amid US Garment Market Shrinkage
The United States market for readymade garments experienced a notable decline in the first five months of this year. Despite this downturn, Bangladesh successfully maintained its position as the second-largest garment exporter to the US, even though its overall export value decreased. This period, from January to May, reveals important shifts among global clothing suppliers.
Bangladesh exported readymade garments worth $3.25 billion to the US during these five months. This amount represents an 8.1 percent reduction compared to the same time last year. However, this drop was slightly less than the 9.25 percent contraction observed in the total US readymade garment import market, suggesting that reduced consumer demand was a main reason for the decline.
In contrast, Vietnam solidified its lead as the top supplier. Vietnam’s garment exports to the US increased by 1.5 percent, reaching $6.39 billion during the same period. Overall, US businesses imported $28.77 billion worth of garments, a decrease from $31.71 billion a year earlier.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), noted that demand in the US market has not fully recovered. He also mentioned that ongoing US investigations concerning Bangladesh and other nations are causing caution among buyers. The possibility of new tariffs worries buyers, making them hesitant to place large orders. Mr. Hatem urged the Bangladeshi government to address these investigations effectively.
China, historically a dominant player, continued to lose its market share. Once the leading exporter, China now ranks third. Its exports to the US plummeted by 42.75 percent, totaling $2.80 billion. This change highlights a trend of US companies shifting business away from China due to trade policies and geopolitical reasons.
Indonesia and Cambodia have benefited from China’s market changes. Indonesia’s garment exports to the US grew by 5.49 percent, reaching $1.97 billion, which placed it fourth. Cambodia saw an even larger increase of 14.9 percent, reaching $1.74 billion and securing the sixth spot. India, another competitor, experienced a significant 26.37 percent drop in exports, falling to fifth place with $1.79 billion.
A small positive trend emerged in May, as overall US garment imports increased by 2.77 percent that month. Bangladesh’s exports also rose by approximately 6 percent in May. However, other countries like China, Indonesia, and Cambodia saw more substantial increases during May, ranging from 18 to 23 percent.
Bangladesh’s average unit price for exported garments was $2.99, which is a 2 percent decrease. This price is higher than some competitors like China ($1.43) and Cambodia ($2.91), but lower than Vietnam ($3.39) and India ($3.41).
