According to data from the Office of Textiles and Clothing of the U.S. Department of Commerce, Bangladesh’s cotton clothing exports to the U.S. decreased by 9.56 percent in the five months before 2024.In addition, clothing exports produced using artificial fibers decreased by 21.85 percent to just 7.5508 billion.These data show that total U.S. clothing imports decreased by 6.0 percent in the five months before 2024, from $315.1 billion in the same period in 2023, to $296.2 billion.

Specific data show that five months before 2024, Bangladeshs clothing exports to the United States fell from $33.1 billion in the same period in 2023 to $29.0 billion. In terms of quantity, Bangladeshs clothing exports fell from $10.1 million square meters in the previous year to $9.6 million square meters, a significant decline.

Historic Highlights and Challenges of Bangladeshs Clothing Exports

In the year 2023, Bangladeshs clothing exports jumped to the worlds number one and performed strongly, surpassing many countries. The Bangladesh Clothing Manufacturers and Exporters Association said that in the fiscal year 2023 (July 2022-2023 June), clothing accounted for more than 80% of Bangladeshs exports, reaching about $47 billion, more than doubling than a decade ago, surpassing the previous years historic high. Ivy clothing exports are critical to Bangladeshs clothing exports, and Ivy clothing exports have almost doubled in the last decade. Bangladeshs clothing exports to the United States and the EU continue to grow, and the countrys cotton clothing exports are prominent in 2022.

However, due to the Russian-Ukrainian war and ongoing high inflation, Bangladesh has been plunged into a serious energy crisis and high cost problems. Exporters report that Bangladesh is unable to catch up with competitors in the U.S. and other key markets due to serious energy problems, high water and electricity charges, increased production costs, extended delivery times and tricky customs procedures. These factors have severely affected Bangladeshs competitiveness in the global market.

Impact of global recession on exports

The global economic downturn has led to a decline in total U.S. clothing imports, but due to faster shipping times in China and Vietnam, the two countries have begun to seize market shares in recent months. Data show that five months before 2024, Bangladeshs clothing exports to the U.S. dropped 12.31%, and exports dropped 622%. This trend suggests that Bangladeshs position in the global market is being challenged.

In addition to Vietnam and China’s increased clothing exports to the United States, Cambodia also increased its market share. Data show that from January to May 2024, Cambodia’s clothing exports to the United States grew by 7.75%, reaching $12.8 billion, compared to $11.9 billion in the same period in 2023.

Tactics for Facing Challenges

In the face of these challenges, Bangladesh needs to take multi-faceted measures to enhance its competitiveness in the global market. First, it must address energy crises and high-cost issues by reducing production costs through the introduction of advanced technology and improving production efficiency. Second, optimize customs procedures and logistics processes, shorten delivery times and enhance market responsiveness. In addition, Bangladesh should increase research and development investment in high-value products, improve product quality and brand influence in order to cope with the competitive pressure of the international market.