Bangladesh regains position as top apparel sourcing destination for the US

Outshining rivals like China and Vietnam, Bangladesh regained its lost position as the top apparel sourcing destination for the United States in 2021. OTEXA statistics show, Bangladesh exported 2.6 billion sq. mt. (SME) equivalents of apparels to the US in 2021. Export volumes surged 29.35 per cent to 2.60 billion SME during the year. As per a Textile Today report, Bangladesh emerged the third biggest apparel sourcing destination for the US after China and Vietnam.

Entrepreneurs’ resilience pushes up performance

Shovon Islam, Chairman, Standing Committee on Press and Publicity, BGMEA’s says, Bangladesh has done an exceptional job in the US apparel market. Despite COVID and supply chain disruptions, textile and apparel industry entrepreneurs and workers showed tremendous reliance, helping it to grow in the US market. Despite shipment timings from Bangladesh to the US being one of the highest, it could offset pandemic challenges and recover in real time, explains Islam, who is also the Managing Director of the Sparrow Group. The RMG industry helped maintain health standards of workers and employees, he adds.

Competitors record marginal export growth

Meanwhile other Asian apparel manufacturing countries suffered from extensive lockdowns and took longer to recover, he adds. For instance, China’s exports to the US grew only 0.45 per cent during the year as apparel sourcing brands and retailers looked to cut dependence on China. Pakistan emerged as most competitively priced garment supplier to the US in 2021. Per unit price of Pakistan’s garments exported to the US was $2.48.

Exports of other major apparel suppliers like Cambodia, Indonesia, India and Vietnam also surged past pre-pandemic levels. Mexico’s apparel exports grew 4.42 per cent from its pre- COVID pandemic level o 826m SME.

China leads export recovery

China leads apparel exports recovery to the US. Its exports surged around 25 per cent to 33.14 billion SME in 2021 from 26.50 billion SME in 2019. Meanwhile Bangladesh’s exports grew 55.26 per cent, Indonesian exports by 21 per cent and India apparel exports surged by 58.73 per cent in 2021 from 2019.