Bangladesh's RMG exports to the Netherlands increased by over 21.21 per cent to $2.08 billion in FY24-25 from $1.72 billion in the previous year. As per the Export Promotion Bureau, this substantial growth was primarily fueled by the strong performance of the country's apparel sector.

Within the apparel category, knitwear exports saw a steep rise of 31.69 per cent, reaching $1.21 billion, up from $926 million a year earlier. Woven garments also showed solid growth, increasing by 9.04 per cent to $879 million, compared to $797 million in FY2023–24.

Beyond clothing, other notable exports included textiles and used clothing ($50 million), footwear and related products ( $96.75 million), headgear ($7.35 million)

Exporters and analysts largely credit this sustained growth to several factors: improved product quality, better supply chain management, a greater focus on sustainable production, consistent timely delivery, and enhanced product diversification.

To maintain this current momentum, industry experts emphasize that Bangladesh needs to strategically pivot toward high-value sectors. This includes areas like pharmaceuticals, ICT services, and processed food exports.

Experts also highlighted the necessity of reducing dependence on garments to successfully expand the market in the Netherlands. They recommend exploring the high potential of the leather industry, while strictly ensuring compliance with international environmental and labor standards.

The Netherlands is a significant investor in Bangladesh. Data from the Bangladesh Bank shows, the country invested approximately $303 million in 2022, accounting for 8.7 per cent of Bangladesh’s total foreign direct investment (FDI).

In a development favorable to Bangladesh, a new tax treaty between the two nations now permits Bangladesh to impose a 10 per cent withholding tax on technology and service payments originating from the Netherlands.