The country’s readymade garment exports to the United States in January-August 2019 registered nearly 12 per cent growth as some of the retailers and buyers continued to shift orders to Bangladesh from China due to the on-going trade war between the two countries.
Bangladesh’s earnings from readymade garment exports to the US in the eight months grew by 11.81 per cent to $4.08 billion from $3.65 billion during the same period in 2018, according to data of the Office of Textiles and Apparel under the US Department of Commerce released on Friday.
Although Bangladesh’s export growth had slipped from its first position in exporting RMG to the US market, exporters said that they were still optimistic about the prospect of the market.
The US import of apparel from China was still high but import from the country in the first eight months of 2019 registered only 1.99 per cent growth with $17.55 billion against $17.20 billion in the same period in last year.
Vietnam’s RMG export to the US in the January-August in 2019 grew by 12.14 per cent to $9.06 billion from $8.08 billion during the same period in 2018, US data showed.
Among competitor countries, Vietnam achieved the highest growth in apparel export to the US in the first eight months of this year, show the data.
Bangladesh’s readymade garment export growth to the US in January-June was 14.49 per cent which showed the highest growth among the competitor countries, data showed.
‘We are still optimistic about the prospects of the US market although Bangladesh is getting little benefits of trade diversion from China due to the US-China trade war,’ former Bangladesh Garment Manufacturers and Exporters Association vice-president Mahmud Hasan Khan Babu told New Age on Saturday.
He said that Vietnam registered the highest apparel export growth in the US in the first eight months of 2019 due to short lead time and exporting value added products.
Mahmud also said that due to increasing cost of doing business, Bangladesh was losing its competitive edge and Vietnam was gaining benefits of factory relocation from China.
He, however, said that consumption of apparel had declined a little bit all over the world as consumers apprehended that a recession might tack place in the global economy due to the US-China trade ware.
The US apparel import from India in the eight months of 2019 stood at $2.94 billion with 8.19 per cent growth while import from Indonesia registered a 0.37-per cent negative growth to $3 billion in the period.
Apparel exports of Cambodia to the US in January-August in 2019 grew by 8.58 per cent to $1.72 billion while the exports of Mexico fell by 3.58 per cent to $2.17 billion, the OTEXA data showed.