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The Financial Express

Clothing exports to US grow by 5.84pc in nine months

| Updated: November 05, 2018 12:26:41


FE file photo used for representation FE file photo used for representation

Bangladesh's clothing exports to the United States grew by 5.84 per cent during the nine months of the current year compared with a year earlier.

The country fetched $4.16 billion from shipping apparels to the US market between January and September period of 2018 against $ 3.93 billion in the same period of the last year, according to data from the Office of Textiles and Apparel (OTEXA), a wing of the US Department of Commerce.

During the period, Bangladesh shipped 1.50 billion square metres of apparels, which were 1.43 billion during the first nine months of 2017.

The US imported textiles and apparel worth $ 4.34 billion from Bangladesh during January to September period, the data showed.

Export earnings from non-apparel items, including yarn and fabrics, stood at $172 million during the January to September period registering a meagre 0.78 per cent growth, according to data.

After the Rana Plaza building collapse in 2013, Bangladesh's apparel exports to the US declined in 2014 reaching $ 4.83 billion, which was $ 4.95 billion in 2013.

In 2015, exports grew $ 5.40 billion but continued to decline in the next two consecutive years.

In 2017, the country earned $ 5.06 billion from garment exports to the US, according to the data.

On the other hand, Chinese apparel exports witnessed a negative growth of 0.05 per cent to $ 20.40 billion during the same period.

Meanwhile, the garment exports of Vietnam grew by 6.10 per cent to $ 9.23 billion and Cambodia witnessed 13.09 per cent rise to $1.82 billion during the same period.

India's apparel exports to the US stood at $ 3.01 billion marking a 3.84 per cent growth during the period.

Experts and exporters said both orders and investment might be shifting from China to other Asian destinations such as Bangladesh and Vietnam.

Vietnam's growth reflects that the country grabbed more share than Bangladesh as they produce high-value items and it is in advantageous position regarding lead time.

Mohammad Hatem, vice-president of the Exporters Association of Bangladesh (EAB), said, "We need nearly 40 days to export to the US while importers get products from Vietnam in only 20 days."

He attributed the infrastructural bottlenecks as hindrances to Bangladesh's retaining its competitiveness.

Though Bangladesh in recent years is producing some value-added items, Vietnam is far ahead than Bangladesh, he noted.

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