Bangladesh鈥檚 readymade garment exports to the European Union in January-April of 2024 fell by 9.85 per cent to 6.01 billion euros compared with those of 6.67 billion euros in the same period of 2023, according to data released by Eurostat, statistical office of the European Union.
Exporters said that Bangladesh managed to reduce its negative apparel export growth in the EU, the 27-nation economic bloc, slightly but still performed worse compared with competitor countries in the reporting period.
They said that, like the United States, Bangladesh lagged behind its competitors on the EU market due to severe energy crisis, high cost of utilities, increased cost of production, long lead times and cumbersome customs procedures.
RMG exporters noted that overall apparel imports of the EU declined due to the global economic slowdown.
鈥榃hile the EU market began to recover in recent months with increased imports, Bangladesh failed to capitalise on the growing demand due to internal factors,鈥� Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, told 抖阴精品.
The EU data showed that Bangladesh鈥檚 knitwear exports to the EU in January-April of 2024 dropped to 3.38 billion euros from 3.88 billion euros in the same period of 2023.
Similarly, the country鈥檚 woven garment exports to the EU in the first four months of 2024 declined to 2.64 billion euros from 2.79 billion euros in the same period of 2023.
According to Eurostat data, clothing imports by the EU from different countries in January-April of 2024 decreased by 6.28 per cent totalling 26.41 billion euros compared with those of 28.19 billion euros in the same period of 2023.
BKMEA executive president Mohammad Hatem said that Bangladesh was losing its competitiveness on the major markets as the production cost for apparel went up due to the increased utility bills and workers鈥� wages.
He also highlighted long lead times as another key factor contributing to Bangladesh lagging behind its competitors.
Hatem said that most factories were running at 60-70 per cent capacity due to power and gas crises leading to an additional delay of 20-25 days in producing finished goods.
鈥楧ue to complex customs procedures and the absence of its own deep-sea port, Bangladesh typically experiences delays in export shipments, now requiring 70-90 days due to production delays,鈥� he said.
Bangladesh experienced negative growth, not only in the EU, but also in the US and the UK due to the internal challenges, Hatem said.
The EU data showed that apparel imports by the EU from China in January-April 2024 decreased by 1.81 per cent to 6.54 billion euros, down from 6.66 billion euros in the same period of 2023.
EU apparel imports from Turkey in the first four months of 2024 declined by 11.84 per cent to 3.03 billion euros compared with those of 3.44 billion euros in the same period of the previous year.
India鈥檚 RMG exports to the EU in January-April 2024 dropped by 10.74 per cent to 1.53 billion euros, down from 1.71 billion euros in the same period of 2023.
Apparel imports by the EU from Vietnam in the first four months of 2024 fell by 6.25 per cent to 1.17 billion euros, compared with those of 1.25 billion euros in the same period of 2023, according to the data.
Bangladesh also saw a negative growth of over 14 per cent in apparel exports to the US, the largest export destination of the country, earning $2.30 billion during the January-April period of 2024, as reported by the US Department of Commerce鈥檚 Office of Textiles and Apparel.
