Bangladesh’s readymade garment (RMG) exports reached US $ 9.51 billion in the first quarter of FY ’25, marking a 2.8 per cent decline compared to the same period last fiscal year, even as the sector experienced a 7.64 per cent increase from the previous quarter. The data was released in a recent report by the Bangladesh Bank.
The previous year’s corresponding quarter saw RMG exports of US $ 9.79 billion. Stakeholders noted that the industry exhibited resilience by maintaining steady growth despite ongoing domestic political unrest.
According to central bank data, the RMG sector’s earnings exceeded those of the prior quarter, which stood at US $ 8.83 billion. Key markets, including the United States, Germany, and other European nations, comprised over 71.2 per cent of the exports during the July-September period, contributing a total of US $ 6.77 billion.
The top export destinations for the RMG sector in this period included the United States, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium. Notably, net RMG exports—calculated by subtracting the value of raw material imports from export earnings—totaled US $ 5.61 billion, representing 59.06 per cent of the gross export figure, underscoring the industry’s value addition amidst global economic challenges.
The sector is currently grappling with several challenges, including labor rights issues, workplace safety, and environmental sustainability. Additional concerns include limited product and market diversity, insufficient backward linkage industries, concentrated markets, high lead times, and increased global geopolitical tensions, alongside rising energy prices.
Despite these hurdles, the RMG sector accounted for 7.87 per cent of Bangladesh’s GDP in FY ’24, with export earnings recorded at US $ 36.13 billion—a modest growth rate of 5.36 per cent from the previous fiscal year.
In the face of evolving consumer needs, the sector is also focusing on sustainability and technological innovation for long-term success. Within the RMG sub-sectors, woven garments comprised 35.72 per cent of total export earnings, while knitwear represented 45.87 per cent.
Shams Mahmud, managing director of Shasha Denims and former president of the Dhaka Chamber of Commerce and Industry, expressed optimism about the sector’s outlook, stating that stability had returned despite recent unrest. He emphasized the need for the government to provide uninterrupted gas supply to bolster the industry’s growth.
