Staff Correspondent:

Bangladesh’s readymade garment exports to the European Union sustained a 4.8-percent growth in 2024, in what exporters see a rebound from post-accident setbacks.

Apparel exports to the EU market during the January-December period of last calendar year fetched 18.27 billion euros compared to 17.44 billion earned in 2023, according to Eurostat data.

The country’s apparel exports to the EU had witnessed over 58-percent growth in last decade from a low turnover worth 11.54 billion euros in 2015, according to data.

Exporters have attributed a number of factors to the steady rise. These include duty-free market access, and workplace-safety compliance after the Rana Plaza collapse, besides producing quality goods.

The developments ensured buyers’ confidence and trust and business environment in the country, providing a boost to Bangladesh’s main export trade.

The EU’s total apparel imports in 2024 stood at 85.48 billion euros, 1.27- percent higher than 84.32 billion logged in 2023, data revealed.

Among Bangladesh’s main competitors, China recorded a 2.3-percent growth while Pakistan and Cambodia witnessed a double-digit growth of 11.6 per cent and 20.3 per cent respectively in 2024.

Asked about the situation, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque termed the growth ‘encouraging’ as the industry is bouncing back.

“But still 2024 earnings are far below the shipments Bangladesh made in 2022,” he said.

In 2022, Bangladesh shipped readymade garments worth 21.91 billion euros to the European bloc, according to data.

He, however, notes that though the global demand has been improving in recent months, Bangladesh is failing to grab the opportunity fully as its competitive edges were eroding, mainly because of high utility prices, poor gas supply, banking issues and the labour unrest.

Mr Hoque, also managing director of Plummy Fashions, said work orders were coming to Bangladesh in recent months and there is huge potential but how much Bangladesh could grab the opportunity still remains in question.

He further said the latest spell of labour unrest had also dealt a blow to the industry as buyers did not feel comfortable placing work orders with factories located in the industrial zones of Ashulia and Gazipur.

Talking to The Financial Express, Fazlee Shamim Ehsan, managing director of Fatulla Apparels, said there were ups and downs last year as the year started with negative growth while exports increased in the last quarter of 2024.

Bangladesh recorded 33.9-percent, 24.8-percent and 36.2-percent year-on-year growth in October, November and December 2024 respectively.

Both the exporters are of the view that work orders are coming and the growth trend might sustain in 2025 as buyers got back their confidence and are sourcing more from the country.

According to Eurostat data, China earned 24.04 billion euros last year by exporting clothes to the EU against 23.49 billion euros in 2023.

The EU’s imports from Turkey recorded a 6.7-percent fall to 9.30 billion euros in 2024.

Vietnam recorded a 4.0-percent growth, earning 3.97 billion euros last year, the Eurostat data show.

Pakistan and Cambodia bagged 3.51 billion and 3.89 billion euros in 2024 respectively from the EU clothing market.

The EU imported apparel worth 4.17 billion euros from India which was 1.9-percent higher than the earnings of 2023.

In the meantime, RMG exports to the United States, the single-largest destination for Bangladesh, grew a paltry 0.75 per cent to fetch $7.34 billion in 2024.

The earnings were $7.28 billion in 2023, according to the OTEXA, an affiliate of the US Department of Commerce. In 2022, however, the country’s RMG exports to the US hit an all-time high of $9.73 billion.