The export of readymade garments (RMG) from Bangladesh witnessed a growth of 7.23% last year to $38.48 billion, up from $35.89 billion in 2023, according to Export Promotion Bureau (EPB) data.
According to the data, during the twelve months of 2024, RMG exports experienced negative growth in two months and positive growth in the other ten months, meaning the sector’s growth maintained consistency despite a turbulent and challenging year for the country's politics and economy.
The month-wise export performance for 2024 showed that the year started well, with narrow growth of 1.45% and 5.29% to $3.47 billion, $3.19 billion, and $3.06 billion in January, February, and March, respectively.
However, exports dipped in April by 6.62% to $2.38 billion, though they witnessed a rebound in May when the country bagged $3.5 billion with a robust growth of 14.59%.
Exports further experienced negative growth of 10.48% in June to $2.97 billion, while RMG exports remained consistent the rest of the calendar year as manufacturers never faced any setback.
In July, Bangladeshi apparel manufacturers earned $3.18 billion, fetching a positive growth of 2.89%.
In August, the export witnessed a positive growth of 7.20% to $3.32 billion, despite the country going through a massive political upheaval at the time, as a massive mass uprising ousted the Sheikh Hasina-led government.
In September, Bangladesh shipped apparel items to their global destination worth $3.01 billion, securing a positive growth of 14.61%.
In October, they experienced a robust surge in exports of 22.80% to $3.29 billion despite Bangladesh's persistently challenging situation.
The positive trend in export growth remained unchanged in the last two months of 2024. In November, Bangladesh earned $3.3 billion, with a positive growth of 16.25%.
According to EPB data, in December, the last month of 2024, the manufacturers shipped apparel items worth $3.77 billion, the highest earnings in a single month of that year, securing a robust positive growth of 17.45%.
Data mismatch
Meanwhile, EPB initially reported that Bangladesh exported apparel items worth $47.39 billion in 2023.
However, in June 2024, a major discrepancy was found among the export data of the EPB, Bangladesh Bank, and NBR.
To reconcile the discrepancies in reporting export earnings, the EPB prepared the data based on real-time shipment data as per NBR Asycuda World, and export earnings stood at $35.89 billion in 2023.
Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that 2024 was a challenging year.
Nevertheless, it also presented some opportunities for business recovery as work orders increased alongside improved political stability.
He highlighted that international retailers and brands were returning to place work orders due to a rise in sales in the US and EU, indicating a rebound in retail sales.
The entrepreneurs are now looking for new markets and manufacturing value-added products.
“If we can reduce corruption and resolve customs and NBR-related issues, 2025 will be a good year for us. Inflation has started decreasing gradually in our major destinations, mainly in Europe and America,” he said, adding that the central banks of many countries are also reducing interest rates.
He also said that the buyers are always confident in Bangladeshi manufacturers due to circularity, green factories, workplace safety, etc. If the global economy turns around, Bangladesh will benefit from it.
Echoing similar sentiments, Mohiuddin Rubel, former director of the BGMEA, believed the Bangladesh RMG industry had the potential for qualitative changes as it diversified product lines and explored new markets.
Significant investments in activewear and non-cotton products are emerging within the industry. Nevertheless, the ongoing crisis in sustainable energy has hindered new investments, causing previous investors to struggle, he added.
Rubel was optimistic that 2025 would mark a significant comeback for the global economy and the apparel business.
He hoped the nation would overcome the ongoing crises, particularly the challenges within the banking and financial sectors.
Addressing challenges
According to industry insiders, they must overcome some challenges to maintain growth in 2025.
Faruque Hassan said Bangladesh’s RMG sector must solve domestic issues to seize the said opportunities.
“We have to ensure an uninterrupted supply of energy and fuel and increase worker efficiency. Moreover, the highest priority should be given to improving the law-and-order situation, ensuring that workers' unrest does not occur, and ensuring political stability,” he added.
Mohiuddin Rubel said achieving sustainable improvements in industrial relations and establishing stable political and economic reforms are essential for restoring confidence as they dedicate themselves to the immediate future.
“I truly believe these improvements will take shape in 2025,” he added.