The trade tension across the world is shifting the wind, and Bangladesh may rather take advantage of it, says an industry leader.
鈥楢t the same time focus and attention should be given on investments in the backward linkages,鈥� said Faruque Hassan, said Director of International Apparel Federation (IAF) in an analysis shared with the media on Tuesday.
He shared a detailed analysis of the European Union鈥檚 apparel import for the period from January to December 2024.
This data provides insights into the performance of various countries in the global apparel market and Bangladesh鈥檚 position within it.
This data reflects the EU鈥檚 imports from Bangladesh between January and December 2024, indicating goods that entered through EU ports during this timeframe.
The global apparel market has experienced a modest growth, with the total import value increasing by 1.53% from US$91.17 billion in 2023 to US$92.57 billion in 2024.
Bangladesh has also managed to achieve a growth of 4.86%, with export values rising from US$18.86 billion to US$19.77 billion, Hassan said.
China, the largest supplier to the EU, has shown a growth of 2.61 per cent (year on year), with exports increasing from US$25.41 billion to US$26.07 billion.
Notably, Cambodia and Pakistan have exhibited impressive performances, with growth rates of 20.73 per cent and 12.41 per cent respectively, which is significantly higher than Bangladesh. Vietnam and India grew by 4.21 per cent and 1.97 per cent respectively. Turkey experienced a 6.64 per cent decline during the mentioned period of time.
In terms of quantity, EU鈥檚 global import increased by 8.98 per cent, with Bangladesh showing a commendable growth of 10.18 per cent in the same period, while China surged higher than Bangladesh by 12.05 per cent.
However, the analysis said, on a unit price basis, Bangladesh has seen a decrease of 4.84 per cent, which is a point of concern.
In fact the unit price of EU鈥檚 global apparel import has gone down by 6.83 per cent, significantly influenced by the -8.43 per cent price slash by China.
The price cuts by Vietnam and Cambodia are also noticeable.
This may be noted that the EU-Vietnam Free Trade Agreement (FTA) has been in effect since 2021, granting Vietnam the preferential benefit of a gradual removal of tariffs by the EU. However, taking a closer look at the European Union market, we can observe the comparative shares of various suppliers.
The share of Bangladesh in EU鈥檚 apparel was 21.37 per cent of the EU鈥檚 total apparel imports in dollar value, which was 20.69 per cent in 2023.
China, being the leading supplier, accounted for about 28.12 per cent in 2024, which was 27.87 per cent in 2023.
Other notable suppliers include Vietnam with 4.66 per cent, and India with 4.89 per cent.
The analysis underscores the need for Bangladesh to focus on strategic initiatives to enhance competitiveness, said Hassan who served as the President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
While the growth in export volume is encouraging, the decline in unit prices is a challenge. 鈥業t is crucial that we explore opportunities to add value, improve operational efficiency, and tap into diversified markets to sustain growth,鈥� Hassan said.
