The United States of America (USA) stands out as a significant apparel importer for both Bangladesh and the global market. According to the Office of Textiles and Apparel (OTEXA), over the past five years spanning from 2017 to 2022, the USA witnessed a remarkable 13.99% growth in its apparel imports from Bangladesh, while its worldwide imports saw a yearly expansion of 4.50%.
USA’s Clothing Imports from Bangladesh Surge by Over 36% in 2022
In 2022, the United States experienced a 36.38% year-over-year increase in its clothing imports from Bangladesh. The value of apparel imports from Bangladesh to the USA reached $9.74 billion in 2022, up from $7.16 billion in 2021 and $5.40 billion in 2018.
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When considering quantity-based metrics measured in square meter equivalents (SME), the USA’s imports of apparel from Bangladesh saw a growth of 20.65% year-over-year. This growth resulted in imports reaching 3.14 billion SME in 2022, compared to 2.60 billion in 2021. Conversely, the USA’s imports from China decreased by 3.11% in terms of quantity in 2022 compared to 2021.
China’s Apparel Exports to USA Jump 10.83% in 2022
China, being the top apparel import source for the USA and having a 21.75 per cent share, posted 10.83 per cent year-over-year growth in 2022 in dollar value. USA’s apparel imports from China reached $ 21.73 billion in 2022 from $ 19.60 billion in 2021 which was $ 27.37 billion in 2018.
Vietnam Holds 2nd Place with USA Clothing Imports Reaching $18.24B in 2022
Conversely, Vietnam maintains its second-place position. The worth of clothing imports from Vietnam to the USA escalated from $12.21 billion in 2018 to $14.37 billion in 2021, further reaching $18.24 billion in 2022. Vietnam’s share of the USA’s overall apparel imports also climbed, rising from 14.74% in 2018 to 18.26% in 2022.
India and Indonesia Achieve Over 35% Growth in 2022
In 2022, both India and Indonesia exhibited growth exceeding 35% when compared to 2021. The respective shares of these countries also expanded to 5.69% for India and 5.61% for Indonesia in 2022, up from 4.59% and 5.40% in 2018.
Noteworthy growth was also seen in other prominent countries__
- Cambodia experiencing a growth of 28.46%
- South Korea at 25.08%
- Pakistan at 24%
- Honduras at 19.85%
- Mexico at 11.50% in 2022.
These countries also observed an increase in their respective market shares during the same period. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a goal of achieving $100 billion in garment exports by 2030.
BGMEA President’s opinion
Faruque Hassan, President of BGMEA, emphasized the potential to increase Bangladesh’s current 9.75% contribution to the USA’s apparel imports. Notably, Bangladesh has recently achieved prominence in the USA’s denim imports. Hassan highlighted opportunities for market expansion in various product categories, particularly among American brands that have yet to fully engage with Bangladesh. Despite aiming for diversified markets, there’s also recognition of the potential for specialization within existing markets.
Hassan underscored their commitment to providing excellent service to customers, particularly benefiting the USA, their largest market. Trade challenges between the USA and Bangladesh, such as the cotton fumigation requirement for US cotton imports, were acknowledged. The Bangladeshi government has already eliminated this obligation, easing time and cost burdens for importers.
Furthermore, there are ongoing efforts to establish duty-free access to the USA for garments made from US cotton. Hassan explained that such a reciprocal arrangement would be mutually beneficial, supporting American cotton growers, apparel brands, and consumers. Simultaneously, it would grant Bangladesh a competitive advantage through preference for US cotton.
GMEA Partners with AAFA to Enhance Bangladesh-USA Trade
Reports indicate that in addition to these efforts, BGMEA is collaborating with the American Apparel and Footwear Association (AAFA) to address various matters aimed at facilitating trade between Bangladesh and the USA.
As per insider information, the association is actively formulating a strategic plan to accomplish this objective. There are indications that this roadmap might be made publicly available by the close of this year.
Shahidullah Azim, Vice-President of BGMEA, stated, ‘Taking into account the broader context, we have set an achievable goal of reaching $100 billion in exports by 2030.’
He highlighted the significance of government policy backing and improvements in the business environment and infrastructure as crucial factors to drive the expansion of manmade fiber exports.
Yet, certain entrepreneurs harbor uncertainties about Bangladesh’s ability to achieve the ambitious $100 billion clothing export target by 2030, considering the existing circumstances.
Fazlul Haque, the managing director of Plumi Fashion, a prominent knitwear factory in the country, expressed his reservations, saying, “There lacks a comprehensive master plan and a structured strategy to realize the goal of $100 billion exports within the next eight years. Moreover, the ongoing conflict in Ukraine might cause a global demand slowdown, particularly in Russia.”
