Bangladesh's ready-made garment (RMG) exports saw a robust rebound in the H1, FY25, with shipments rising to all major markets. Total RMG exports by the country from July-December 2024 increased by 13.28 per cent Y-o-Y to $19.89 billion as against $17.56 billion during the corresponding period of the previous year.

The European Union (EU) remains the largest market, absorbing approximately 50 per cent of Bangladesh's total garment exports. EU imports rose by 15.22 per cent to $9.87 billion with imports by Germany rising by 14 per cent to $2.47 billion and imports by France expanding by 10 per cent to $1.09 billion.

Accounting for 19 per cent of Bangladesh’s total RMG exports, the US’ imports increased by 17.55 per cent to $3.84 billion. This growth is attributed, in part, to US tariffs on goods from other countries, leading buyers to explore alternative sourcing options in Bangladesh. Imports by the United Kingdom increased by 6.70 per cent to $2.16 billion while imports by Canada rose 14 per cent to $640 million

Despite these positive export figures, the RMG industry in Bangladesh continues to face significant challenges. Highlighting the issue of low prices offered by buyers, despite rising production costs, Mohammad Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), points out, domestic textile mills in Bangladesh continue to struggle due to gas and electricity shortages, leading to increased reliance on imported yarn. Furthermore, banking and law and order issues hinder continued export growth, he adds.