Business Desk– Bangladesh is consistently losing ground in the United States, the world’s largest apparel market. During the first four months of the current year, Bangladesh’s garment exports to the US plummeted by 11.24%.
Conversely, key competing nations like Vietnam, Cambodia, and Indonesia have successfully maintained positive growth, with Cambodia recording an impressive surge of over 14%.
This concerning scenario emerged from the latest data released by the Office of Textiles and Apparel (OTEXA), a division of the US Department of Commerce.
A Shrinking Market with Shifting Shares
According to OTEXA, total apparel imports by the US market declined by 12% to $23.8 billion during the January-April 2026 period.
While global demand contraction has put almost all exporting nations under pressure, Bangladesh’s primary competitors have managed to expand their market share within the same window.
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Export Value Shift: In Jan-Apr 2025, Bangladesh exported apparel worth $2.98 billion to the US. In the same period this year, that figure dropped to $2.64 billion. Meanwhile, Vietnam’s exports rose from $5.08 billion to $5.15 billion (a 1.31% increase). Cambodia witnessed a massive jump from $1.23 billion to $1.40 billion (a 14.7% increase), and Indonesia grew by 2.27%.
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Volume Disparity: Bangladesh did not just decline in monetary value; it lagged behind in volume too. The quantity of garments shipped from Bangladesh fell by 9%. In stark contrast, export volumes rose by 2.69% for Vietnam, 9.44% for Indonesia, and a staggering 17.77% for Cambodia.
Why Bangladesh is Falling Behind Competitors
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that while the overall US import market shrank, the real concern is that competitors are capturing a larger slice of the remaining pie.
Industry analysts point to a sharp contrast in product diversification and structural readiness:
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Product Mix: Vietnam and Cambodia have focused heavily on high-value fashion apparel, sportswear, and synthetic/man-made fiber (MMF) products to secure large orders from global brands. Bangladesh, however, remains heavily reliant on low-margin, cotton-based basic apparel.
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Falling Unit Prices: OTEXA data reveals that the average unit price of Bangladeshi garments dropped by 2.45%, indicating that local exporters tried holding onto orders by cutting prices—yet failed to revive growth.
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Investment & Infrastructure: In recent years, Cambodia and Vietnam have successfully attracted foreign direct investment (FDI), upgraded industrial infrastructure, and effectively capitalized on the relocation of manufacturing away from China.
Domestic Hurdles and Global Policies
Domestic challenges continue to cripple local manufacturers’ ability to compete. Mohammad Hatem, President of BKMEA, noted that tariff policies under US President Donald Trump have hit overall US demand.
Simultaneously, skyrocketing domestic energy costs, acute gas shortages, supply chain weaknesses, high bank interest rates, and a dollar crisis have severely eroded Bangladesh’s competitive edge.
Dr. Zahid Hussain, former Lead Economist at the World Bank’s Dhaka office, added that high inflation, sluggish economic growth, and reduced consumer spending in Western nations have led international brands to cut back on orders.
However, nations like Vietnam, Turkey, and Indonesia are successfully weathering the storm and increasing their unit value by focusing aggressively on premium, high-end products.
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A graphic chart showing a downward trend for Bangladesh’s RMG exports to the US compared to the rising growth lines of Vietnam and Cambodia.
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