Market Data

Bangladesh Defies Predictions as Apparel Exports to U.S. Rise by 26.62% in a decade

Despite forecasts of a steep downturn, Bangladesh’s apparel exports to the United States have strengthened over the past decade, underscoring the country’s growing competitiveness in the world’s largest clothing market.

A new study by the Research and Policy Integration for Development (RAPID) recently warned that Bangladesh’s total exports to the U.S. could fall by up to 14 percent—or nearly $1.25 billion—over the next year following Washington’s 20 percent reciprocal tariff on imports. Apparel export to U.S. alone may account for about $1.08 billion of that potential decline, RAPID Chairman Mohammad Abdur Razzaque told a workshop in Dhaka.

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Yet, long-term data suggest a different story. According to the U.S. Office of Textiles and Apparel (OTEXA), Bangladesh’s apparel exports to the U.S. market grew by 26.62 percent between 2015 and 2024, even as total U.S. apparel imports fell by 5.30 percent. The figures reveal a decade-long strengthening of Bangladesh’s position as a reliable sourcing destination, outpacing several regional competitors.

Also Read: How the 35% US Tariff Threatens Bangladesh’s Export Economy

While China’s apparel exports to the U.S. dropped 18.36 percent and Indonesia’s by 19.82 percent during the same period, Vietnam and India registered growth of 32.96 percent and 34.13 percent respectively, with Cambodia increasing by 10.78 percent. Bangladesh’s steady rise has made it one of the most resilient players amid global trade headwinds, pandemic disruptions, and shifting sourcing dynamics driven by the U.S.–China trade tensions.

More strikingly, Bangladesh has defied the global trend of falling apparel prices. Between 2015 and 2024, the average unit price of U.S. apparel imports decreased by 1.71 percent, but Bangladesh’s per-unit export price rose by 7.30 percent. In contrast, China’s export prices dropped by 33.80 percent and India’s by 4.56 percent. Vietnam and Indonesia also managed modest price hikes of 6.64 percent and 7.38 percent, while Cambodia saw a sharp 38.31 percent rise.

Also Read: Process for Partial Exporters to Import Duty-Free Raw Materials

Industry insiders view this as both a sign of progress and a call for strategic change. “Bangladesh is now maintaining a unit price close to the global average paid by the U.S.,” said Mohiuddin Rubel, former Director of Brand BGMEA and Managing Director of Bangladesh Apparel Exchange. “But compared with Vietnam and India, we still have room to raise our prices. That can significantly increase earnings without shipping more garments.”

Rubel pointed out that Vietnam’s strength lies in its higher-value product mix. In 2024, Vietnam and China exported nearly the same dollar value to the U.S., yet Vietnam shipped less than half the volume.

“Vietnam’s per-unit export price stands at $3.59 compared to China’s $1.78,” he said. “That’s the power of value addition. For Bangladesh, the future lies in shifting decisively toward design-led, technologically advanced, and sustainable apparel.”

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