Bangladesh’s ready-made garment (RMG) exports have seen impressive double-digit growth in major markets over the first eight months of the current fiscal year, driven by increasing demand from global brands and retailers. According to data from the Export Promotion Bureau (EPB) for the July-February period of the 2024-25 fiscal year, RMG exports rose by 10.64 per cent overall, totaling US $ 26.79 billion.
The European Union (EU) remains Bangladesh’s largest export destination, accounting for 50.10 per cent of total RMG exports, valued at US $ 13.42 billion. The United States followed with exports reaching US $ 5.06 billion, representing 18.91 per cent of the total, while Canada contributed US $ 845 million, or 3.16 per cent. The UK also plays a significant role, with exports worth US $ 2.93 billion, comprising 10.94 per cent of total RMG exports.
In terms of growth, RMG exports to the EU increased by 11.53 per cent year-on-year, while exports to the USA surged by 16.38 per cent. Canada also saw a healthy increase of 14.12 per cent. Conversely, exports to the UK exhibited a more modest growth rate of 3.74 per cent.
Within the EU, Germany emerged as the largest market for Bangladeshi garments, with exports valued at US $ 3.38 billion. Other notable destinations included Spain (US $ 2.35 billion), France (US $ 1.43 billion), Italy (US $ 1.05 billion), Poland (US $ 1.13 billion) and the Netherlands (US $ 1.43 billion). Growth rates were particularly robust in the Netherlands (25.06 per cent), Denmark (14.58 per cent) and Sweden (21.12 per cent).
The RMG sector also recorded growth in non-traditional markets, with an overall increase of 6.23 per cent, bringing total exports to US $ 4.52 billion, or 16.90 per cent of Bangladesh’s total RMG exports. Among these markets, Japan led with imports worth US $ 839 million, followed by Australia (US $ 582 million) and India (US $ 478 million). Notably, exports to Turkey and Mexico reached US $ 305 million and US $ 229 million, respectively, with growth rates in Turkey (32.20 per cent) and Mexico (25.14 per cent) standing out.
Despite the positive trends, some markets experienced declines, including exports to Russia, Korea, the UAE and Malaysia. Mohiuddin Rubel, a former director of BGMEA, highlighted that the ongoing growth in exports heavily relies on the EU and the USA, which remain Bangladesh’s primary markets. He emphasized the need for further research and strategic focus on non-traditional markets to reduce dependency on traditional destinations.
Rubel underscored the importance of investing in the RMG sector’s productive capacity and backward linkages to maintain competitiveness. He stated, “Remaining competitive is essential for ensuring long-term growth and stability,” while also noting that global trade tensions could present new opportunities for Bangladesh to capitalise on.
