Bangladesh’s position as the world’s second-largest garment exporter is currently facing a challenge. Ready-made garments account for nearly 80 percent of the country’s total export value. Bangladesh held the second position in global apparel exports in 2024, according to the World Trade Organization’s (WTO) World Trade Statistics 2025. That year, Bangladesh’s apparel exports were approximately $39 billion, while Vietnam, holding the third position, exported $38 billion. But the export landscape has begun to shift since then.
In the recently concluded FY 2025-26, Bangladesh’s ready-made garment exports dropped to $38.70 billion. On the other hand, the country’s textile and apparel exports have already surpassed $44 billion, with a target to reach $47 to $48 billion this year, according to data from the Vietnam Textile and Apparel Association (VITAS). India, Cambodia, Indonesia and Pakistan are also strengthening their positions in the global market. Concerns have consequently arisen among stakeholders regarding Bangladesh’s ability to maintain its second position in global apparel exports.
It is not just global exports; recent apparel import statistics from Bangladesh’s two primary markets — the European Union (EU) and the United States — also signal cause for concern. In the January-April period of the current year (2026), Bangladesh’s apparel exports to the EU declined by 19.33 percent compared to the same period last year, according to Eurostat data. During the same period, exports from Turkey, India, Cambodia and Pakistan also declined. But Vietnam experienced a drop of only 0.7 percent.
Bangladesh’s exports to the US market fell by 11.24 percent during the January-April period of this year, according to OTEXA data. Conversely, during the same period, Vietnam’s exports grew by 1.31 percent, Indonesia’s by 2.27 percent, and Cambodia’s by 14.07 percent. In other words, even as global demand has weakened, several competing countries have managed to maintain or increase their market share.
The situation in the ready-made garment (RMG) sector within the country is also becoming increasingly difficult. Following the Eid-ul-Adha holidays, incidents of worker layoffs and factory closures have risen in various industrial zones, including Savar and Ashulia. From the Al-Muslim Group, which employs nearly 30,000 workers, 1,868 workers have been laid off from three of its factories. Between January and May, 7,784 workers were laid off across 79 factories in six industrial zones. According to data from industry-related agencies, 457 factories have been permanently closed across seven industrial zones from August 2024 to June of this year. The most recent closure is that of Islam Garments (Unit-2). These events have had a direct impact on both production and exports.
The 2025-26 fiscal year ended on a downward trend in exports, according to the Export Promotion Bureau (EPB) data released on Thursday. Over the 12 months, growth remained negative at 0.58 percent. Total commodity exports stood at $48 billion. Although there was a 24.9 percent growth in exports in the first month of the fiscal year (July), nine out of the 12 months ultimately recorded negative growth. In other words, a decline in exports was observed in nine months of the fiscal year. While there was a 25.91 percent growth in June, exporters state that this is primarily due to the low base effect from the previous year.
The biggest blow in this downward export trend has come from the country’s primary export sector, ready-made garments. In the 2025-26 fiscal year, apparel exports declined to $38.70 billion, which is 1.64 percent lower than the previous year. Within this, knitwear exports decreased by 2.53 percent, and woven garment exports fell by 0.61 percent. Despite positive growth in leather and leather goods, engineering products, home textiles, and jute and jute goods, the decline in the apparel sector has pushed the country’s overall exports into negative growth.
The scenario of the overall commodity export market is also not very promising. Exports to the United States, the largest market for Bangladesh’s ready-made garments, have grown by 4.9 percent. But exports to Germany, the second-largest market, have declined by 10.81 percent. Growth in the United Kingdom is only 1.03 percent. While there has been growth in Spain, one of the major European markets, the pressure on the European market as a whole is evident.
The country’s top exporting organisations include Youngone Corporation, Ha-Meem Group, Mondol Group, DBL Group, Ananta Group, PRAN-RFL Group, Square Group, Palmal Group, Pacific Jeans Group, and Micro Fibre Group, according to data from the National Board of Revenue (NBR). A large portion of the country’s total exports is conducted through these entities. Their production, investment and order status are crucial in determining the future of the entire export sector.
AK Azad, managing director of Ha-Meem Group, told Bonik Barta, “The pace of exports was sluggish last fiscal year. What will happen in the future depends on the global geopolitical situation.”
Survival was the biggest challenge last fiscal year, according to the country’s top export entrepreneurs. By their calculations, the garment sector was actually under pressure from a negative growth of about 10 to 12 percent. Although large companies were able to retain old buyers, new orders did not increase as expected. Preparations must begin from the start to secure orders from major brands for the coming year.
MA Rahim, vice chairman of DBL Group, told Bonik Barta, “It’s difficult to say right now how the new fiscal year will go. The situation in the Middle East, including Iran, the weak economy of Europe, and global uncertainty, haven’t yet subsided. If the German and European markets don’t perform well, the demand for clothing won’t increase. Despite DBL doing well, the overall situation isn’t very promising.”
“Maintaining the second position in the global market has now become quite critical. Vietnam’s export earnings are higher than ours, and they don’t have as much negative growth as we do. Despite Bangladesh and Vietnam sharing a large portion of the orders moving out of China, retaining the second position is now a major challenge for us,” he further added.
But Mohammad Hasan Arif, vice chairman of the Export Promotion Bureau (EPB), is optimistic about the situation. “We’ve successfully navigated a difficult period from both global and national perspectives. Positive trends have been observed over the last two to three months. We made a strong turnaround in June. We hope this trend will continue. The coming year will be better for exporters,” he stated.
According to Mohammad Hatem, president of the Exporters Association of Bangladesh (EAB) and BKMEA, the high growth in June is misleading. “Due to the Eid-ul-Adha holidays last June, factories were closed for a long period. That’s why the growth appears higher this time. But in reality, export orders haven’t increased. There has been no fundamental change in our situation. It doesn’t seem that exports will increase significantly in the next few months,” he said.
BGMEA President Mahmud Hasan Khan stated, “Rather than holding the second position globally, sustainable growth and value addition are now more important. If we remain in the second position but can’t sustain growth or increase value addition, that position doesn’t hold much meaning.”
He further added, “US tariff policies in the international market, the rise of Chinese exports to the European Union, the advantages of Vietnam’s free trade agreements, the potential India-EU FTA, the decline in product prices, and domestic issues — such as the gas crisis, high interest rates, investment stagnation and rising production costs — are weakening Bangladesh’s competitiveness. There’s no alternative to taking swift action in energy, financing, logistics, and policy reforms to address this situation.”
Analysts say that despite Bangladesh having firmly held the second position in global apparel exports for more than a decade, that position is no longer certain. Without rapid improvements in production capacity, market diversification, value addition, and the investment environment, Bangladesh’s position in the global ranking could face even tougher challenges.