In the first 10 months of 2021 Bangladesh’s earnings from garment exports to the US were up 27 per cent compared to the same period in 2020. In fact, Bangladesh surpassed Vietnam, China and Indonesia in terms of growth in apparel exports to the United States. Bangladesh’s apparel makers have been receiving an additional flow of work orders because of a drastic fall in China’s factory outputs fuelled by energy shortages and pandemic-led supply chain disruptions in Vietnam and Indonesia. Its apparel exports to the US market have kept growing and many US buyers are now shifting to Bangladesh. As per Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), their apparel exports to the US market kept growing with many US buyers now shifting to Bangladesh.

With a reboot of economic activities in the US after the pandemic situation turned the corner, Americans have started releasing pent-up demand, especially for clothing and footwear. From January 2021 to October 2021, the US’ imports of clothing were 24 per cent more than in the same time a year ago. China’s apparel exports to the US might halve in the next five or 10 years, opening up an opportunity for Bangladesh to take a bigger stake in the largest market. If Bangladesh takes production costs under control by making business easier, it will take an edge over Vietnam. Bangladesh’s exports are hampered by the high costs of doing business. Many exporters do not take orders despite having the capacity as the prices they are getting are not in line with production costs.