The country's apparel- export growth to the USA slowed down to 22 per cent this July year on year for economic slowdown amid high inflation there, slicing the demand.
On the other hand, US apparel imports from China and Vietnam in July witnessed over 36-per cent growth, according to OTEXA, an affiliate of the US Department of Commerce.
The growth is over 74 per cent for India and Cambodia, said the OTEXA data released on Tuesday.
Bangladesh shipped apparel items worth $693.28 million in July.
Apparel exports in June 2022 grew by 66.20 per cent to $906.03 million year on year.
The year-on-year January-May export growth ranged between 38.59 per cent and 96 per cent, an OTEXA data analysis showed.
Besides, Bangladesh's growth in terms of quantity is only 4.4 per cent in the first month of current fiscal year while competitors like China, Vietnam, India and Cambodia maintained double-digit growth from 17 per cent to 52 per cent.
During the first seven months (January to July) of the 2022 calendar year, local apparel export earnings grew by about 53 per cent to $5.91 billion.
Despite the Covid-19 pandemic, Bangladesh fetched $7.14 billion from RMG exports to America in 2021, keeping the market as its single-largest export destination without any duty preference.
The RMG exports in 2021 also surpassed those of the pre-pandemic level in 2019 when Bangladesh earned $5.92 billion.
Industry insiders said a high demand for Bangladeshi RMG products, especially knit items, since the beginning of the pandemic, a significant rise in raw material prices, and buyers' confidence in the local industry's resilience and compliance have helped exports grow since last October to this July.
But the demands for apparel items have declined in recent months due to the economic slowdown and inflationary pressure there, resulting in a huge inventory, they said, adding that the US buyers are now placing less work orders.
Overall US apparel imports from across the world from January to July also slowed down to 29.83 per cent to $78.40 billion, according to the OTEXA data.
The US imported apparel worth $19.41 billion from China and $11.72 billion from Vietnam during the period.
When asked, Sparrow Group managing director Shovon Islam said since October 2021 to June/July 2022, apparel export to the US was 'tremendous' as buyers placed orders aplenty followed by post-Covid high demands from consumers and some supply chain issues.
Regarding growth, Mr Islam, who shipped half of his produced garments to the US, told the FE that the monthly growth was compared to the low base of 2021.
He, however, said both US and EU buyers are confirming a reduced rate of work orders for the upcoming season. Giving an example of an US buyer that sources high value-added items from his factory, Mr Islam said the buyer has confirmed up to 15 per cent less orders.
Overall work orders have reduced up to 30 per cent in recent months which might be reflected in October and onward months, he noted, adding that high-value orders are affected less compared to that for basic items.
Echoing Mr Islam, Mahmud Hasan Khan, a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said exports might decrease further in the next months for reduced demands there.
Besides, the prices of RMG products increased globally due to high prices of raw materials, he said, adding that unit prices of products have started decreasing with the reduction in raw material prices.