Russia-Ukraine war failed to impact Bangladesh’s apparel exports that grew 52 per cent year-on-year to $1.63 billion during the first two weeks of March. As per an RMG Bangladesh report, most of the growth was spurred by continued global demand and the country’s leveraging of anti-China sentiments in the US and European countries.

As per Bangladesh Garment Manufacturers and Exporters Association (BGMEA) the country’s apparel sector grew over 200 per cent year-on-year in a single day during the period even though Russian banks were cut off from SWIFT, the main international payment system, and shipping lines declined to carry any goods to the country

Future uncertain despite robust growth

Readymade garment exports grew 30 per cent to $27.49 billion from July to February’22 over the corresponding period in previous year, shows data published by the Export Promotion Bureau (EPB). Farque Hassan, President, BGMEA says, Bangladesh apparels exports recorded robust growth during the war. However, future cannot be predicted due to the current volatile situation. Apparel exports to the US surged during the period and are expected to continue growing.

Anti-China sentiments boost exports to EU, US

Fazlul Hoque, Former President, BKMEA and Managing Director, Plummy Fashions explains, increase in domestic demand too is a big reason for orders from the US market. US’ diversification from China is also encouraging them to place more orders with Bangladesh. Exporters to Russia are facing payment and shipment delays though buyers have assured them of receiving goods and making payments through alternative arrangements, he adds. Mostafiz Uddin, Managing Director, Denim Expert, Founder and CEO, Bangladesh Apparel Exchange points out rising freight costs triggered by the war, are also affecting apparel exports to Russia. However, Bangladesh’s exports to the US and EU are growing amid rising anti-China sentiments in these countries, notes Fazlee Shamim Ehsan, Vice President, BGMEA. Buyers in these regions trust Bangladesh entrepreneurs despite a significant rise raw material prices.

Exports to US surge 45 per cent

Office of Textiles and Apparel (OTEXA) stats indicate Bangladesh apparel exports to the US surged by over 45 per cent to $756 million in terms of value and volume in January 2022. In terms of volume, Bangladesh’s apparel exports to the US grew by 2.17 per cent to 282.38 million sq. mt. in January 2022 as it emerged as the single-largest export destination without any duty preference.

The US imported apparels worth $1.90 billion from China during the month while it received shipments worth $1.27 billion from Vietnam. US’ apparel imports from other major sourcing destinations, such as India, Pakistan and Cambodia, grew 53.40 per cent, 44.41 per cent and 42.12 per cent respectively. Overall, US’ apparel imports surged 36.60 per cent to $7.54 billion in January this year from $5.52 billion in the same month of 2021, shows OTEXA data.