Bangladesh’s long-standing position as a dominant force in the global ready-made garment (RMG) sector is encountering severe headwinds. Long reliant on its competitive advantage of low-cost manufacturing to secure market dominance, the South Asian nation is now discovering that cheap pricing alone is insufficient to retain its share in the European Union (EU) garment market. Recent statistical data highlights a troubling trend: while high-value exporters such as Vietnam continue to hold their ground, Bangladesh is experiencing a notable drop in export revenue.
According to the latest figures released by Eurostat, the statistical office of the European Union, total apparel imports by EU brands and retailers reached €41 billion during the first six months of the current year. This represents a 9.70 per cent year-on-year decline in overall apparel imports across the bloc. However, Bangladesh’s performance fell significantly short of the market average. EU imports from Bangladesh dropped by 16.43 per cent to €8.64 billion, causing its market share to contract from 22.73 per cent to 21.03 per cent.
The shift in market dynamics is further illustrated by a direct comparison with Vietnam. Although Vietnam’s total export volume in tonnes dropped by 11.52 per cent, its focus on higher-value products allowed it to post a modest 0.36 per cent increase in overall export revenue, reaching €2.07 billion. Crucially, the average price of Vietnamese garments rose by 13.43 per cent to €29.32 per kilogram. Conversely, Bangladesh saw its average unit price fall by 8.94 per cent to €13.88 per kilogram, alongside an 8.22 per cent drop in export volume.
The data highlights a clear structural divergence in performance across major suppliers:
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China: Retained its position as the top supplier, commanding a 28.80 per cent market share.
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Bangladesh: Remained the second-largest exporter with €8.64 billion in sales, despite a 16.43 per cent drop in export revenue and a average price decline to €13.88 per kilogram.
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Vietnam: Exported €2.07 billion worth of apparel, achieving a 0.36 per cent growth in total value due to a higher average unit price of €29.32 per kilogram.
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European Union Overall: Total apparel imports contracted by 9.70 per cent year-on-year to €41 billion, although a modest 3 per cent recovery was registered in June.
Industry analysts and factory owners point to structural product imbalances as a primary driver behind these diverging figures. Sheikh H. M. Mustafiz, a Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), noted that volatility in global cotton markets recently shifted international consumer demand towards man-made fibre (MMF) and synthetic garments. While Vietnam’s manufacturing sector is heavily tailored towards synthetic apparel, Bangladeshi manufacturers remain predominantly reliant on traditional cotton-based production.
Furthermore, domestic operational challenges continue to undermine competitiveness. Bangladeshi manufacturers have reported severe power and natural gas disruptions lasting several weeks, threatening production schedules precisely as international buyers place orders for the upcoming summer season. Coupled with trade developments—such as India securing a Free Trade Agreement (FTA) with the EU—buyers are increasingly looking to diversify their supply chains. Industry leaders emphasise that to maintain its market standing against China and emerging regional rivals, Bangladesh must urgently transition towards high-value, synthetic apparel manufacturing and stabilize its domestic energy infrastructure.
