Bangladesh’s garment exports to key markets like the EU and the US have rebounded significantly, but unit prices have declined due to persistent pressure from international buyers to lower costs.
- In January 2024, exports to the US surged by 45.93% year-over-year, reaching $799.65 million, with volume increasing by 49.21%. However, unit prices dropped by 2.20%, per OTEXA data.
- In 2023, Bangladesh’s exports to the EU grew by 4.86% to $19.77 billion, with volume increasing by 10.18%. However, unit prices fell by 4.84%, per Eurostat.
- A global decline in garment prices has been driven by falling raw material costs, including cotton, yarn, and freight charges. Additionally, an FTA between the EU and Vietnam has enhanced Vietnam’s competitiveness.
- Bangladesh’s garments remain priced lower than those from competitors like Vietnam and Cambodia. Longer lead times and a focus on low- to mid-range garments reduce bargaining power, though high-end garment production is increasing.
- In the July–February period of FY 2023-24, Bangladesh’s garment exports grew by 10.64% to $26.79 billion:
- EU: $13.42 billion (50.10% of total RMG exports, up 11.53%)
- US: $5.06 billion (18.91% share, up 16.38%)
- UK: $2.93 billion (10.94% share, up 3.74%)
- Canada: $845 million (3.16% share, up 14.12%)
Experts suggest enhancing product quality, reducing lead times, and avoiding unhealthy price competition to secure better prices.
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