Bangladesh has held onto its rank as the world’s second-largest exporter of ready-made garments (RMG), claiming a 7.4% slice of the global market. The World Trade Organization’s ‘World Trade Statistics 2023’ report, published on July 31, shows Bangladesh’s garment exports totaling $38 billion in 2023.
Conflicting figures emerged from Bangladeshi sources. The Export Promotion Bureau (EPB) initially cited garment exports at $47.38 billion. Subsequent audits by Bangladesh Bank (BB) and the National Board of Revenue (NBR) found overestimations due to customs double-counting, leading to a revised, lower figure.
China remains the dominant player, exporting $165 billion in apparel and securing a 31.6% market share. Vietnam follows Bangladesh in third place with $31 billion in exports and a 6% share. Turkey and India trail with $19 billion and $15 billion in exports, respectively. Indonesia exported $8 billion worth of garments, holding 1.6% of the market.
The WTO report outlines a turbulent year for global trade, noting a 2% decline to $30.5 trillion. Goods trade dipped by 5%, whereas services trade surged by 9%. This shift adjusted the makeup of global trade: goods’ share dropped from 77.8% in 2022 to 75.3% in 2023, while services’ share climbed from 22.2% to 24.7%.
Various factors contributed to this volatility: the ongoing impacts of the COVID-19 pandemic, the Russia-Ukraine war, inflationary pressures on Western economies, labor strikes over wage issues in the garment industry, the Red Sea crisis, and escalating freight charges.
Despite initial reporting discrepancies, Bangladesh’s performance in the global garment market remains impressive. The garment sector is a cornerstone of the nation’s economy, navigating both opportunities and challenges amid global economic fluctuations.
Bangladesh’s retention of its second-place ranking highlights the strength and competitiveness of its RMG sector. Addressing labor rights and wage issues, along with enhancing trade infrastructure, will be essential for continued growth and bolstering the sector’s international reputation.
POLICY & LAW | India’s Carpet Industry Demands Action on Imports and Tax Evasion
