- Bangladesh Retains Second-Largest Apparel Exporter Position in 2025 Despite Slowing Growth
Bangladesh retained its position as the world’s second-largest apparel exporter in 2025, but export growth slowed to just 0.89%, well below the global apparel market’s 4.46% growth, according to World Trade Organization (WTO) data.
The country exported $38.82 billion worth of garments in 2025 while maintaining a 6.76% share of global apparel exports. However, Bangladesh’s market share declined from 7% in 2024 as Vietnam recorded 10.53% export growth, narrowing the gap between the two countries to $1.31 billion.
Industry leaders attributed the slowdown to energy shortages, high borrowing costs, political uncertainty, rising production costs, and weak investment in manufacturing capacity. They warned that Bangladesh must act quickly to maintain its competitiveness as regional rivals continue to expand.
Although Bangladesh retained its global ranking, the WTO data showed that Cambodia, Pakistan, Indonesia, India, and Vietnam all recorded stronger export growth in 2025, highlighting increasing competition in the global apparel market.
Source: The Business Standard
- RMG Cash Incentive Raised to 5% to Boost Local Yarn Use
The government has increased the cash incentive for export-oriented ready-made garment (RMG) manufacturers to 5% from 1.5%, effective from 1 July 2026, to encourage greater use of locally produced yarn, fabrics, and other textile inputs.
Under the revised policy, exporters must provide proof that they sourced raw materials from domestic producers to qualify for the incentive. The measure aims to support Bangladesh’s struggling spinning industry, which has faced rising energy costs, expensive financing, weak demand, and growing competition from imported yarn.
Industry leaders welcomed the decision, saying it will improve the competitiveness of locally produced yarn, strengthen the country’s textile backward linkage industry, and increase domestic value addition ahead of LDC graduation. However, they stressed that uninterrupted gas and electricity supplies, lower financing costs, and effective monitoring will also be essential for the policy to succeed.
Source: The Financial Express
China industrial zone takes off in Chattogram: Groundbreaking marks start of $1.3b investment drive expected to create 100,000 jobs
Bangladesh on July 27th formally launched construction of the long-awaited China Economic and Industrial Zone (CEIZ) in the main port city Chattogram’s Anwara.
Expected to attract around $1.3 billion in investment and create more than 100,000 jobs, the project is one of the country’s largest China-backed industrial initiatives.
The groundbreaking ceremony also saw the signing of several sub-lease agreements with investors, the inauguration of the CEIZ One Stop Service Centre and the participation of around 70 Chinese business representatives, underscoring growing investor interest in the export-oriented industrial park.
Finance Minister Amir Khasru Mahmud Chowdhury described investment as the government’s highest priority, saying it would be the key driver of employment and Bangladesh’s ambition of becoming a $1 trillion economy by 2034.
Developed on nearly 800 acres under a government-to-government initiative between Bangladesh and China, CEIZ is expected to become a major manufacturing and logistics hub for Chinese and other foreign investors. The zone aims to attract export-oriented industries, including electric vehicles, batteries, medical equipment, electronics and other advanced manufacturing sectors.
Chinese Ambassador Yao Wen said the groundbreaking marked an important step in implementing the outcomes of Prime Minister Tarique Rahman’s visit to China and reflected the two countries’ commitment to expanding practical economic cooperation.
China Road and Bridge Corporation (CRBC), the project’s developer, said construction would now move into a new phase.
BEZA Executive Chairman Ashik Chowdhury said investor confidence had strengthened significantly following the prime minister’s visit to China in June. “More than 30 Chinese companies have already committed roughly half a billion dollars to a site that, as of this morning, is still open ground,” he said. He announced that the government aims to cut the time needed for industrial licences and approvals from the current six months to one year to just 14 days within the next three months as part of broader investment reforms.
The launch came little more than a month after the Executive Committee of the National Economic Council approved a Tk 41.89 billion supporting infrastructure project for the zone. It includes a multipurpose jetty, connecting roads, power substations, a gas transmission line, a water reservoir, a central effluent treatment plant, waste management facilities and other utilities needed to make the zone investment-ready.
The project will be implemented between January 2027 and December 2031.
Earlier government approved the development and land lease agreements with Bangladesh CEIZ Company Ltd, the joint venture implementing the project. Under the arrangement, BEZA will hold a 30% stake, while CRBC will own the remaining 70%.
Located on the southern bank of the Karnaphuli River, close to Chattogram Port, the Karnaphuli Tunnel and Shah Amanat International Airport, the economic zone is expected to strengthen Bangladesh’s position in regional supply chains while supporting the government’s efforts to transform Chattogram into the country’s main commercial and industrial hub.
Source: The Daily Star
- Bangladesh Is Losing Ground in Global Apparel Market: Study
Bangladesh is no longer the biggest beneficiary of China’s shrinking share in the global apparel market, with Cambodia and Vietnam attracting a larger share of shifting apparel orders since 2022, according to a study by Research and Policy Integration for Development (RAPID).
The study found that while China’s global apparel market share continued to decline between 2022 and 2025, Bangladesh’s share remained largely unchanged. In contrast, Cambodia and Vietnam expanded their market shares, reflecting stronger gains in global sourcing. Researchers attributed Bangladesh’s slower progress to policy inconsistencies, an unfavourable investment climate, limited capacity in man-made fibre (MMF) production, rising business costs, energy shortages, high lending rates, and weaker investment.
The study also warned that Bangladesh’s exports to the European Union could decline by more than 36%, while RMG exports could fall by over 43% after LDC graduation if the country becomes subject to the EU’s Most Favoured Nation tariffs without securing a new trade arrangement.
Industry leaders stressed the need for stronger competitiveness, investment, and market diversification to help Bangladesh regain momentum in the global apparel market.
Source: The Business Standard
- Bangladesh Exports to Japan Remain Below $1.5 Billion Despite EPA
Bangladesh’s exports to Japan fell 3.65% year on year to $1.36 billion in FY2025-26, remaining below the $1.5 billion mark despite the recently signed Economic Partnership Agreement (EPA). Ready-made garments accounted for $1.16 billion of total exports, highlighting the sector’s continued dominance in bilateral trade.
Although the EPA grants duty-free access to 7,379 Bangladeshi products, industry leaders said it has yet to translate into stronger exports because garments already enjoyed duty-free access. They noted that the agreement’s main advantage is the single-stage rules of origin, which could improve competitiveness after Bangladesh’s LDC graduation.
Exporters and trade experts said Bangladesh has not fully tapped Japan’s apparel market, where annual demand is estimated at $25 billion. They called for greater product diversification, particularly into sportswear, along with stronger public-private collaboration, higher production capacity, and improved competitiveness to expand exports.
Source: The Financial Express
Turkish Sanko wants to invest $300 million in economic zone
Turkish company Sanko wants to invest $300 million in the economic zone in Mirsarai, Chattogram, to build an integrated textile production facility for both the domestic and international markets. A Sanko team expressed this interest at a meeting with Commerce Minister Khandakar Abdul Muktadir at his Secretariat office in Dhaka.
Currently, the company supplies fabrics for garment manufacturing from Turkey, but it wants to expand its business in Bangladesh by setting up a factory to produce value-added fabrics.
The company wants to begin operations within the next 12 to 18 months if the necessary facilities are ensured by the government, as the site has already been selected, according to a statement from the commerce ministry.
Source: The Daily Star
- Bangladesh’s LEED-Certified RMG Factory Count Reaches 290
Four more readymade garment (RMG) factories in Bangladesh have achieved Leadership in Energy and Environmental Design (LEED) certification, reinforcing the country’s position as a global leader in sustainable apparel manufacturing.
Canvas Garments Pvt Ltd and Matrix Sweaters Ltd received Platinum certification, Karim Textiles Limited earned Gold, and Karim Tex Limited secured Silver certification.
With these additions, Bangladesh now has 290 LEED-certified RMG factories, including 125 Platinum-rated and 145 Gold-rated facilities. Bangladesh also continues to lead global rankings for green garment factories, with 53 of the world’s 100 highest-scoring LEED-certified factories located in the country.
Source: The Daily Sun
Sluggish RMG exports unlikely to rebound in coming months:
Dragging war, oil shock and mounting inventories overshadow the relative clarity
The country’s sluggish garment exports are unlikely to recover in the coming months as the war in the Gulf drives up energy costs, feeds inflation in key Western markets and leaves retailers with more unsold stock, according to exporters and major international buyers.
Apparel makers say buyers remain cautious and are avoiding large orders, even though uncertainty over US tariffs has eased. Fresh apparel orders largely depend on retail sales in the United States and Europe. But the dragging US-Israel’s war on Iran has triggered an energy shock that is rippling through the global economy.
Higher energy prices have pushed up inflation in Bangladesh’s main export markets, weakening demand for clothing in Europe, Asia and the US. At home, rising energy costs have also increased production costs for manufacturers.
“We are facing a perfect storm now,” said Abrar H Sayem, director of Sayem Group, which supplies clothing to brands including US Polo Assn, British Ben Sherman and European fast-fashion retailer NewYorker.
The country’s readymade garment (RMG) sector earned $38.70 billion in the recently concluded fiscal year 2025-26 (July-June), down 1.64 percent from $39.35 billion in FY25, according to Export Promotion Bureau (EPB) data.
The FY26 decline was largely blamed on months of uncertainty over US tariffs. Although the Trump administration kept the newly announced tariff unchanged at 10 percent on Friday, easing one source of uncertainty, exporters say the broader market remains weak.
“The order placement is still slow as the global volatility is lingering,” said AK Azad, managing director of Ha-Meem Group, a leading garment exporter to the US. The war, oil prices and old inventories have been affecting buyers’ decisions, Azad added.
“Western buyers are also going through a difficult period, which has affected their purchasing decisions,” said Tapan Chowdhury, managing director of Square Apparels, which also exports garments to the US and Europe.
Meanwhile, exporters also say the country’s heavy reliance on five basic garment items has left the industry vulnerable in an oversupplied market marked by intense price competition.
Western buyers say the country’s export performance is unlikely to improve over the long term unless it shifts towards higher-value products.
Bangladesh mainly exports trousers, T-shirts, formal woven shirts, underwear and sweaters. Together, these account for 78 percent of total garment exports, while about 95 percent of factories produce these five categories.
“Our old model of selling basic garments is no more relevant as India has been showing resilience in this segment recently because of incentives paid to the exporters,” said Md Fazlul Hoque, managing director of Plummy Fashions Ltd, whose buyers include Tommy Hilfiger, Calvin Klein and Zara. He said improving gas supplies and lowering bank lending rates should be priorities as manufacturers continue to face rising production costs.
A senior executive at a European garment retailer, who asked not to be named, said Bangladesh’s graduation from least developed country (LDC) status and the subsequent loss of preferential market access could make the country a more expensive sourcing destination than its competitors, reducing its competitiveness in key export markets. The buyer said major retailers and brands have already begun planning to source more products from other countries ahead of Bangladesh losing GSP benefits over the next few years, even if the transition is delayed. He also said that if India secures duty-free access to the European market through a bilateral free trade agreement (FTA), buyers may push for even lower prices from Bangladeshi exporters supplying Europe.
Source: The Daily Star
Bangladesh RMG Centre will establish Uzbekistan Centre of Excellence for the Textile and Readymade Garment Industry
Samarkand State University, one of the leading and oldest universities in Central Asia, has announced that in collaboration with Bangladesh RMG Centre, it will establish a Centre of Excellence. It aims to become a leading platform for knowledge exchange, research, innovation, professional development and industry engagement. By bringing together leading national and international experts, academics, industry professionals, entrepreneurs, and policy makers, the proposed Centre of Excellence will contribute to the sustainable development and global competitiveness of Uzbekistan’s textile and apparel industry.
Professor Dr Akmal Akhtarov, Vice Rector for International Cooperation Affairs at Samarkand State University, also announced that Mehdi Mahbub, President of Bangladesh RMG Centre who has been an Advisor to Uztextileprom (Uzbekistan Textile and Garment Industry Association), is expected to lead the Uzbekistan Centre of Excellence for Textile and Readymade Garment Industry.
Source: RMG Bangladesh
