Bangladesh's Garment Industry Sees Promising Shifts in Export Landscape

Strategic Insights -

Bangladesh's readymade garment (RMG) sector has experienced a significant surge in shipments to non-traditional markets, with a 6.79 percent year-on-year increase reaching $6.04 billion during the July-May period of the fiscal year 2024-25. This growth is driven by emerging destinations, with India, Turkey, and Japan showing notable increases of 17.35, 31.75, and 10.32 percent, respectively. Despite a decline in shipments to some markets, the European Union remains the powerhouse for Bangladesh's RMG exports, accounting for nearly half of all shipments at 49.91 percent, totaling $18.25 billion.

Key Takeaways:

  • Garment exports to non-traditional markets climbed by 6.79 percent year-on-year, reaching $6.04 billion during the July-May period of the fiscal year 2024-25.
  • India showed significant growth with a 17.35 percent rise in exports, followed by Turkey at 31.75 percent, and Japan at 10.32 percent.
  • The European Union remains the dominant market, commanding nearly half of all shipments at 49.91 percent, totaling $18.25 billion.
  • The United States remained a strong second, with exports reaching $7.03 billion, marking a 19.23 percent increase.
  • The knitwear segment showed a robust performance with a 10.98 percent growth, while woven garment exports saw a healthy increase of 9.30 percent.
  • Bangladesh's cumulative RMG exports for the July-May period reached $36.56 billion, representing a 10.20 percent increase from the same period a year ago.
  • Germany led as the top export destination within the EU, receiving $4.58 billion in shipments.
  • RMG exports to the EU and the US saw year-on-year growth of 10.46 percent and 15.97 percent, respectively.

Statistics:

  • $6.04 billion: garment exports to non-traditional markets (year-on-year increase of 6.79 percent).
  • 17.35 percent: growth in exports to India.
  • 31.75 percent: growth in exports to Turkey.
  • 10.32 percent: growth in exports to Japan.
  • $18.25 billion: total RMG exports to the European Union (49.91 percent of total shipments).
  • $7.03 billion: total RMG exports to the United States (19.23 percent increase year-on-year).
  • 10.98 percent: growth in knitwear exports.
  • 9.30 percent: growth in woven garment exports.
  • $36.56 billion: cumulative RMG exports for the July-May period (10.20 percent increase year-on-year).
  • $4.58 billion: RMG exports to Germany (within the EU).

Sources:

  • Export Promotion Bureau
  • Bangladesh Garment Manufacturers and Exporters Association (BGMEA)