Bangladesh’s ready-made garment (RMG) exports to the United Kingdom experienced a significant downturn in the first quarter of 2024, highlighting the industry’s broader challenges amid global economic slowdowns and internal inefficiencies.
Data from the UK reveals that Bangladesh earned £616.38 million from RMG exports between January and March 2024, a stark decline from the £806.88 million recorded during the same period in 2023.
The decrease in exports is part of a larger trend affecting the UK’s overall apparel imports, which fell by 20.76 percent in the first quarter of 2024, totaling £2.38 billion compared to £3.0 billion in the previous year.
While Bangladesh maintained its position as the top clothing exporter to the UK, followed by China, Turkey, India, and Pakistan, the figures indicate widespread reductions across all major suppliers.
In 2023, China led the pack with £3.02 billion in garment exports to the UK, closely followed by Bangladesh with £2.78 billion. However, the first quarter of 2024 saw a decline in the UK’s apparel imports from China to £601.51 million, down 14.37 percent from £702.49 million in the same period last year. Turkey, India, and Pakistan also reported negative growths of over 20 percent, 29 percent, and 18 percent, respectively.
Several industry experts and RMG exporters have attributed the downturn to a combination of global economic conditions and specific operational challenges in Bangladesh.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), pointed to high production costs, driven by increased utility prices and wages, as a key factor.
Another critical issue is the prolonged lead time in Bangladesh’s RMG sector. Hatem noted that competitors like China and Vietnam have managed to mitigate the extent of their negative growth by improving efficiency, whereas Bangladesh has struggled.
Bangladesh’s lead time ranges between 70 to 90 days, up from the previous 50 days, exacerbated by ongoing power and gas crises that have hindered full production capacity and timely procurement of raw materials.
Hatem also cited Bangladeshi manufacturers’ inability to accept orders at the prices offered by buyers due to the increased costs of production and raw materials.
Logistical issues, including delays in customs clearance, have compounded these challenges, leading to difficulties in timely shipments and imports of essential materials.
This logistical inefficiency is further compounded by what industry insiders describe as customs harassment, adding layers of delay and cost to the export process. These operational bottlenecks have impacted exports to the UK and have been reflected in negative growth rates in other major markets, including the US and the EU.
The impact of these issues is evident beyond the UK market. According to US official data, Bangladesh recorded more than a 17-percent decline in exports to the US, the country’s largest single export destination, amounting to $1.75 billion in the first quarter of 2024.
