Bangladesh's apparel exports to the United States, which had witnessed a decline due to the Russia-Ukraine war, have begun to recover, showing signs of positive growth in 2024.
Although overall growth remains modest, the sector has returned to an upward trajectory.
In 2024, Bangladesh exported garments worth $7.34 billion to the US, reflecting a 0.75% increase compared to 2023, when exports had dipped by 25% to $7.29 billion due to geopolitical disruptions.
A notable surge occurred between September and December 2024, with December alone accounting for $580 million in exports—an 18.36% rise compared to December 2023.
Garment exporters attribute this growth to US buyers placing additional orders ahead of new tariff implementations.
Moreover, representatives from new buyer companies are either initiating discussions or visiting Bangladesh, while firms that previously sourced from China are increasingly engaging with Bangladeshi buying houses and garment factories.
According to the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, US companies imported apparel worth $79.26 billion from various countries in 2024, marking a 1.71% increase from 2023.
China maintained its top position in the US apparel market, exporting goods worth $16.51 billion in 2024, with a growth rate of 0.79%.
Vietnam followed with exports totalling $14.98 billion, up 5.61% from the previous year. Bangladesh secured the third spot among apparel exporters to the US.
OTEXA's latest report reveals that Bangladesh's apparel exports to the US grew by 18% in September, 26.7% in October, and an impressive 41.6% in November 2024.
The recent imposition of additional tariffs by the new US President, Donald Trump, on imports from Canada, Mexico, and China has further invigorated prospects for Bangladesh's garment industry.
Exporters note that an extra 10% tariff on Chinese products is likely to redirect orders from China, presenting an opportunity for Bangladesh to capture a larger market share.
Additionally, investors are considering relocating factories from China to other countries, with Bangladesh positioned as a potential beneficiary.
India also demonstrated robust growth, exporting apparel worth $4.69 billion to the US in 2024, an increase of 4.94% from the previous year. Indonesia ranked fifth, with exports totalling $4.25 billion, reflecting a 1.40% growth.
Reflecting on historical trends, during Trump's first tenure in 2018, the US-China trade war prompted a shift in sourcing away from China.
Bangladesh benefitted from this shift, exporting $5.93 billion worth of apparel to the US in 2019—the highest in seven years.
Although exports dipped during the COVID-19 pandemic, they rebounded to $9.72 billion in 2022 before declining again due to the Russia-Ukraine conflict.
Garment industry leaders assert that Bangladesh possesses the capacity to handle increased orders diverted from China.
However, they caution that this potential may be hindered by the ongoing gas and electricity shortages.
The ability to meet rising demand will depend significantly on the availability of these critical utilities.
They further note that Bangladesh is well-positioned to attract orders for low- and mid-priced garments from China.
Securing orders for high-end apparel, however, will require attracting investments currently based in China, necessitating effective governmental initiatives.
With strategic efforts, industry insiders believe that Bangladesh could achieve substantial growth within one to one-and-a-half years.
