Bangladesh losing out to Vietnam, India in US market

Bangladesh is losing out to Vietnam and India in its single biggest apparel export market, the United States. The country’s market share is decreasing every year.

US Department of Commerce’s Office of Textile and Apparel (Otexa) has released its import statistics where net import from Bangladesh during the January to October 2017 period stood at US $ 4.35 billion.

The figures are 4.93 per cent lower on a year-to-year basis for the same period of time last year. Back then, the figure stood at US $ 4.58 billion.

The Otexa data shows that market share of Bangladesh’s apparel products cumulated to 6.5 per cent of total garment imports of the US – lower than what was 6.77 per cent last year.

On the other hand, the market share of Vietnam is increasing. Total apparel import from Vietnam by the US increased by 14.26 per cent during the first 10 months of the year, what was 13.39 per cent last year.

The same stood true for India as it expanded its market share to 4.66 per cent during the 10 months from 4.51 per cent last year, the Otexa statistics show.

Net import of garments in the US during the first 10 months of 2017 stood at US $ 68.41 billion.

It is to be noted that Bangladesh’s apparel exports to the US have tumbling since the Rana Plaza disaster in 2013, where over 1,100 workers died in a factory building collapse.

Former President of Bangladesh Knitwear Manufacturers and Exporters’ Association, Fazlul Hoque has said Vietnam’s secret lies within its innovative product designs.

He also added that India too is boosting its apparel industry with Government incentives.

Bangladesh’s Centre of Excellence for Bangladesh Apparel Industry (CEBAI) has also taken up an initiative now for research and development in the apparel industry.

BGMEA (Bangladesh Garment Manufacturers and Exporters Association) has also been knocking the Government’s door for special allowances and benefits for the industry for long. It remains to be seen what new the Government has in the box, in terms of incentives, to boost garment exports.