The apparel export industry in Bangladesh has seen a significant decline in the first five months of 2023 due to various factors such as a global economic slowdown, inflation, and US interest rate hikes. These factors have dampened demand for Bangladeshi garments, resulting in a decrease in both export value and volume. 

Several reasons contribute to this decline, including the lingering effects of the Covid-19 pandemic, the ongoing Russia-Ukraine war, and unsold inventory in the US and Europe. 

According to data from Otexa, Bangladesh's ready-made garment exports to the United States, its largest export destination, amounted to $3.30 billion from January to May, a notable 19.16% decrease compared to the previous year. The shipment volume also experienced a negative growth of 30.91% during the same period. In contrast, the overall apparel imports of the United States declined by 22.92% to $31.51 billion. 

While Bangladesh faced a decline in exports, it fared relatively better than China and Vietnam, which experienced contraction rates of 30.44% and 28.07% respectively. This can be attributed to US buyers shifting from China and the implementation of the China-plus policy. 

However, the ongoing Russia-Ukraine war has affected demand, resulting in high inventory levels among buyers and reduced work orders. Data also reveals changes in the US apparel market, with China's share declining and Bangladesh's share increasing. During the January-May period of 2023, the US imported $5.76 billion worth of apparel from China, a decrease from the previous year. 

Vietnam and India also experienced declines in apparel exports to the US. Despite the challenges, Bangladesh has maintained a relatively favorable position compared to its competitors. It is crucial to assess the changing dynamics and implement effective strategies to mitigate the impact of global economic factors on Bangladesh's apparel exports to the United States.