Inspection and audit demand from US garment buyers in Bangladesh surged by 61 per cent year-on-year in the third quarter of 2025, making the country one of the strongest performers among Asian suppliers, as American companies continued to shift sourcing away from China, according to a latest report.
The United States鈥� ongoing realignment of its global sourcing away from China is opening new opportunities for Bangladesh and other South and Southeast Asian manufacturing hubs, the Quality Inspection Management (QIMA), a leading provider of supply chain compliance solutions, said in its report.
Nearly six months after the 鈥楲iberation Day鈥� policy shift, Q4 2025 QIMA Barometer showed a marked reduction in US procurement from China, offset by rising demand across alternative production centres in Asia.
Bangladesh Garment Manufacturers and Exporters Association senior vice-president Inamul Haq Khan said that Vietnam, which produces higher-end garments, as well as Cambodia, are performing better.
He said that work orders had slowed in the July鈥揝eptember quarter due to reduced US consumer purchases, but he hoped the flow might improve in the final quarter of 2025.
Inamul also said that Bangladeshi exporters were facing increased competition in the EU market, as India and China were aggressively seeking to expand their business there following the US鈥檚 imposition of high tariffs on the two countries.
Bangladesh maintained its position as the third-largest apparel exporter to the US in 2024, with exports rising slightly by 0.75 per cent to $7.34 billion, while US apparel imports from China increased marginally by 0.79 per cent to $16.51 billion.
The barometer, titled 鈥楧espite US Tariff Posturing, World Favors Trade Over Wars,鈥� analysed tens of thousands of QIMA inspections and audits worldwide and outlined three major themes: the mounting challenges of 鈥榝riend-shoring鈥� for US supply chains, China鈥檚 pivot to Latin America, and Europe鈥檚 steady overseas sourcing patterns.
Inspection and audit volumes in China fell 24 per cent year-on-year in the third quarter of 2025, reflecting the combined impact of punitive tariffs and a deliberate disengagement by American companies seeking to de-risk their supply chains.
By contrast, inspection activity rose 26 per cent in South Asia and 39 per cent in Southeast Asia, as global buyers continued to diversify their sourcing networks, QIMA Barometer showed released on October 14.
Within the region, Sri Lanka recorded the highest growth, with inspection and audit demand soaring 75 per cent YoY, driven by renewed orders from apparel buyers diversifying away from both China and India.
Cambodia also reported a strong 36 per cent increase, while Vietnam and Indonesia saw more moderate growth of 21 per cent and 14 per cent, respectively.
Despite the positive trend, QIMA warned that the outlook for US sourcing in Asia remains uncertain.
The newly introduced 鈥榯ransshipment tariffs,鈥� aimed at curbing indirect exports from China through third countries, could disrupt trade with key Southeast Asian hubs such as Vietnam.
Additionally, rising trade tensions with India in late August have already begun to appear in sourcing data, raising concerns about whether the current pace of diversification can be sustained.
The data indicated that European buyers had maintained a steadier approach to sourcing.
It showed that inspection demand from the European buyers across Southeast Asia increased by 8 per cent year-on-year, led by Vietnam, which saw a 21 per cent rise, Thailand with an 18 per cent increase, and Cambodia, where inspections grew by 10 per cent.
The data showed that closer to home, nearshoring partnerships around the Mediterranean had recorded solid gains in the third quarter of 2025, with inspection activity rising by 15 per cent year-on-year in Morocco, 19 per cent in Tunisia, and 24 per cent in Egypt.
The report noted that Egypt鈥檚 performance reflected its growing role as a regional rival to Turkey, supported by significant foreign investment in its textile industry.