As per the latest figures from the Department of Commerce’s Office of Textiles and Apparel (OTEXA) the volume of US apparel imports from all sources grew 4.8 per cent year-on-year in September 2015, down from the 13.5 per cent increase in August 2015. Imports reached 2.69 billion square metre equivalents (SME), up from 2.56 billion SME in September last year 2014

In September 2015 apparel imports into the US continued its upward trajectory, with seven of the top 10 supplier countries booking year-on-year growth. Despite rising wages and strong currency, China continues to be the largest exporter, keeping the TPP benefits in mind, Vietnam too received an encouraging response from the western buyers.

Bangladesh exports rise 21.15 per cent

As per the latest figures from the Department of Commerce’s Office of Textiles and Apparel (OTEXA) the volume of US apparel imports from all sources grew 4.8 per cent year-on-year in September 2015, down from the 13.5 per cent increase in August 2015. Imports reached 2.69 billion square metre equivalents (SME), up from 2.56 billion SME in September last year 2014.

Official data showed that Bangladesh’s exports rose 21.15 percent to $2.37 billion in October 2015 from a year earlier, driven by stronger overseas sales of garments. The Export Promotion Bureau (EPB) said that exports from July to October, the first four months of the 2015-2016 financial years, rose nearly 5 per cent to $10.13 billion from the same period a year earlier, 3 percent short of the target. Sales of garments, comprising woven items and knitwear, totaled $8.24 billion in the July-October (2015) period, compared with nearly $7.75 billion a year earlier.

Breaking it down into individual supplier countries, seven of the top 10 recorded growth shipments from China – the largest supplier of apparel to the US – were up 1.48 per cent to 1.32 billion SME. Nearest rival Vietnam grew 10.6 per cent to 281 million SME, compared to the same month September a year back in 2014. Bangladesh, ranked number three in the top-ten league table, saw apparel shipments rise 41.6 per cent to 157 million SME.

Of the remaining supplier countries, Indonesia recorded the strongest growth at 16 per cent to reach 99 million SME, followed by El Salvador up 13.8 per cent to 76 million SME and Pakistan up 13 per cent to 51 million SME. Year-on-year import gains were also reported by India up 10.5 per cent to 74 million SME. However, three countries saw apparel shipments decline during September 2015. Cambodia recorded the largest drop at 3.52 per cent to 109 million SME, followed by Honduras down 3.5 per cent to 101 million SME, and Mexico down 1.74 per cent to 72 million SME.

China, Vietnam gain despite hiccups

Despite increasing wages posing as a deterrent to its competitiveness on the global stage, China continued to lead the way when it comes to efficiency and infrastructure. Rising prices are largely being offset by productivity gains and China continues to be the compelling source for apparel buyers. With its 10,916 garment manufacturers with annual sales above CNY20 million churning out 29.6 billion pieces in 2014, up 1.6 per cent year-on-year, experts say that no country can match China in terms of the size of its supply base.

Official data also indicates that the overall weakening of China’s manufacturing industry has slowed down, prompting hopes the government’s stimulation efforts are starting to take effect.

Vietnam on the other hand is benefiting as producers and buyers diversify their supply chains to the country keeping the opportunities Trans-Pacific Partnership would open for then. China sensing the after-effect of TPP has already started moving large volume of its investments to Vietnam to boost its garment sector and take advantage of the TPP.

According to data from Office of Textiles and Apparels under the US Commerce Department the TPP final deal has started pinching Bangladesh RMG sector though it is yet to be signed. Bangladesh apparels export to the US market grew 11.40 per cent while Vietnam export to the US market rose to 13.86 per cent during the last 10 months from January to October of 2015. During the said period Bangladesh earned $4.66 billion and Vietnam earned $9.03 billion from their RMG exports to the US. Movement within the top three – China, Vietnam and Bangladesh – during the seven months of year 2015 shows China rose 7.2 per cent to 8.69 billion SME, Vietnam grew 15.2 per cent to 2.38 billion SME, and Bangladesh increased 13.8 per cent to 1.43 billion SME.

The other winners included India up 7.2 per cent to 799 million SME; Cambodia up 4.2 per cent to 816 million SME; Honduras up 3.8 per cent to 837 million SME; El Salvador up 2.2 per cent to 609 million SME; and Pakistan up 0.4 per cent to 448 million SME. However, Mexico saw apparel shipments drop 0.6 per cent to 692 million SME, while Indonesia’s shipments were down 0.5 per cent to 960 million SME. A broader view of the year 2015 indicates that total US apparel and textile imports increased 8.92 per cent between January and September to reach 48.43 billion SME from 44.46 billion SME last year.

Otexa.ita.doc.gov