Bangladesh’s ready-made garment (RMG) exports expanded 6.03 per cent Y- to $13.71 billion during the July–October period, maintaining its dominance over national trade. However, underlying trade data highlights a growing reliance on basic, low-margin apparel over high-value technical wear. Basic categories - primarily T-shirts, trousers, and sweaters—accounted for over 78 per cent of overall RMG shipments and generated 94 per cent of new export growth. While knitwear exports grew 7 per cent to $7.71 billion, advanced functional apparel recorded sub-2 per cent gains, exposing structural vulnerability to global pricing shocks.
Volume reliance masks margin risks across manufacturing clusters
Manufacturing hubs in Gazipur and Narayanganj continue to absorb rising labor and utility costs without matching buyer price increases. Industry analysts caution, over-indexing on basic garments leaves factories exposed to low order margins, despite headline volume gains.
Sustaining trade momentum requires transitioning from high-volume basic items toward high-margin technical garments, states Mahmud Hasan, Director, Apex Textile Mills. Relying strictly on basic apparel leaves exporters highly sensitive to raw material inflation and shifting buyer terms, he adds.
Boosting international margins with certifications and partnerships
The RMG sector produces knitwear, woven garments, basic denim, and specialized textiles for retail markets across Western Europe and North America. Strategic initiatives focus on automation, green building certifications, and direct-to-consumer partnerships to boost international margins, expanding on Bangladesh’s historic cotton garment heritage.
