Bangladesh鈥檚 apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday.
Exporters said that global challenges had impacted all major exporting countries, including Bangladesh.
However, Bangladesh has been more severely affected due to the erosion of its competitive advantages, driven by high utility prices, poor gas supply and recent wage hike, they said.
Although the country鈥檚 knitwear exports to the EU decreased by 8.58 per cent in January-June of 2024, the shipment of woven garments witnessed a slight increase by 0.28 per cent to 3.74 billion euros from 3.73 billion euros, the data showed.
Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that global challenges impacted all major apparel exporting countries.
He said that Bangladesh had been severely affected due to the erosion of its competitive advantages, driven by high utility prices, shortage of gas and wage hike.
Citing the current situation of the country, Fazlul said, 鈥楤uyers rarely announce their decisions to shift or cancel work orders outright. Instead, they gradually redirect their orders elsewhere to mitigate business risks.鈥�
He said that one of his buyers was scheduled to place an order for the next season at the end of July, adding, 鈥業 didn鈥檛 receive that order, which means it was likely diverted to other destinations.鈥�
However, Fazlul expressed hope that the exports would recover in the coming months if the political situation stabilised.
The readymade garment imports by the EU from different countries in January-June of 2024 fell by 6.03 per cent to 38.47 billion euros compared with those of 40.94 billion euros in the same period of 2023.
Data showed that the overall reduction of 4.98 per cent in Bangladesh鈥檚 apparel exports was slightly better than the global average decline of 6.03 per cent in the EU鈥檚 apparel imports.
The Eurostat data showed that apparel imports by the EU from China in the first half of 2024 declined by 7.23 per cent to 9.16 billion euros compared with those of 9.88 billion euros in the same period of past year.
Although China remained as the top apparel exporter to the EU in value, the European Union鈥檚 official data showed that Bangladesh obtained the top position in exporting knitwear to the 27 nation economic bloc in January-June of 2024.
Bangladesh鈥檚 knitwear exports to the EU in in the first half of 2024 stood at 4.98 billion euros while those of China were 4.51 billion euros.
Bangladesh鈥檚 woven garment exports to the EU in January-June of 2024 stood at 3.74 billion euros against China鈥檚 exports of 4.65 billion euros in the period.
Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that long lead times were a major factor causing Bangladesh to lag behind its competitors.
The ongoing power and gas crises have hindered manufacturers from utilising their full production capacity and created challenges in procuring raw materials on time, leading to delays of additional 20-25 days in producing goods and making shipments, he said.
Hatem also said that Bangladesh had experienced negative growth not only on the EU market but also in the US and UK.
He mentioned that while Export Promotion Bureau data might have showed growth, the reality told a different story.
Apparel imports of the EU from Turkey in the first half of 2024 declined by 10.95 per cent to 4.59 billion euros compared with those of 5.15 billion euros in the same period of 2023, the EU data showed.
India鈥檚 RMG exports to the EU in the first half of 2024 fell by 4.53 per cent to 2.32 billion euros compared with those of 2.43 billion euros in the same period of the previous year.
Apparel imports of the EU from Vietnam in January-June of 2024 fell by 6.16 per cent to 1.70 billion euros compared with those of 1.81 billion euros in the same period of 2023.