Exports of apparel products from Bangladesh are losing out to competition from Vietnam, Cambodia, India and Indonesia. The declining trend is expected to continue in the months to come unless measures are taken to bring back buyers’ confidence. Already some American retailers are relocating orders elsewhere. Buyers are continuing to wait for the inspection report of Alliance, hitting exports to the US market. They want a certificate issued by Alliance that the relevant factories in Bangladesh are free from fault.

Alliance has already completed safety assessment of garment factories in Bangladesh. For the seventh month running, the country’s readymade garment exports to the US have slipped while those of other four countries saw strong double-digit growth. The two largest apparel suppliers to the US continue to be Vietnam and China. Readymade garments make up around 80 per cent of the total merchandise exports from Bangladesh.

Vietnam continues to benefit as both producers and buyers diversify their supply chains. Its apparel business is also being buoyed by the expected benefits of the proposed Trans-Pacific Partnership trade treaty with countries including Canada and the US. Like Vietnam, India may also have benefited from orders diverted from China and Bangladesh.