Bangladesh’s readymade garment (RMG) exporters are seeing a sudden influx of orders from global buyers after last-minute changes in US tariff policy reshaped the sourcing landscape.
The revised rates have prompted buyers, previously sourcing from China, India, and Myanmar, to turn to Bangladesh. Manufacturers are now reviving expansion plans, reopening idle units, and considering fresh investments.
Snowtex Group Managing Director SM Khaled said US buyers are significantly increasing orders, one client boosting down jacket orders from 300,000 to 500,000 pieces, while another doubled its order size. Snowtex plans to expand production lines from 30 to 45.
Ananta Garments Limited, fully booked until December, is adding a Taka 200 crore washing plant to meet rising demand, said Managing Director and BGMEA Senior Vice-President Inamul Haq Khan Bablu. He noted that capacity constraints in Vietnam and Cambodia further position Bangladesh as an attractive sourcing hub.
The ripple effect is extending to backward linkage industries. Bangladesh Textile Mills Association President Showkat Aziz Russell urged renewed investment, highlighting that the sector has already seen US $ 75 billion in total investments. Despite recent declines in capital machinery imports, several major groups, including Ha-meem, New Age, Deco, Pacific, and Sparrow, have expanded capacity.
Chinese investors are also moving in, renting or acquiring ready facilities, and exploring “Free of Charge” manufacturing models, where they provide raw materials and finance while Bangladeshi factories handle production.
BGMEA data shows 191 factories have shut in the past two years, but improving market conditions may revive many. Some, like Jaks Sweater Limited in Gazipur, are already preparing to reopen.
Industry leaders, however, caution that exporters from China and India losing US market share may target Europe more aggressively, pushing down prices. Over half of Bangladesh’s apparel exports go to Europe, compared with less than 20% to the US.
