Shahin Howlader
When discussing Bangladesh’s economy and employment, the first thing that comes to mind is its thriving ready-made garment sector.
In terms of export earnings, the clothing industry is the lifeline of Bangladesh’s foreign currency earnings. Not only is it the single largest employment-generating industry, which directly employs over 4 million people. It empowers the country’s women, mostly rural ones, as over 65 percent of the sector’s workers are female.
As the ready-made garment (RMG) industry is the main driving force of Bangladesh’s economy, it alone accounts for approximately 85 percent of the country’s total export earnings and contributes around 11–12% to the national gross domestic product (GDP).
According to Export Promotion Bureau (EPB) data, Bangladesh earned $48.28 billion exporting different types of goods, of which 39.45 billion from the garment sector. Bangladesh earns this amount by exporting to around 200 countries.
However, the export earnings are highly concentrated on 10 export destinations, which account for over 70 per cent of total export earnings.
Statistics of the Export Promotion Bureau (EPB) showed, Bangladesh’s total export earnings in the 2024–25 fiscal year stood at $48.28 billion. Of this, around $14.65 billion or 69.69% of total exports, came from just 10 countries, including the United States of America, Germany, the United Kingdom, Spain, France, Italy, Canada, India, the Netherlands, and Poland.
Among these, the United States is Bangladesh’s single largest export market, with the majority of exports comprising ready-made garments. Earnings from exports to the United States. reached $8.69 billion, accounting for 18% of the country’s total exports. Compared to the previous year, exports to the U.S. in the 2024–25 fiscal year increased by 14.38%.
Of this, exports of ready-made garments alone generated $7.54 billion, which was 13.79% higher than the previous year’s earnings of $6.63 billion.
Here, the significance is 19.18 percent of Bangladesh’s total RMG export earnings from the USA markets. So it is crystal clear that Bangladesh is a sourcing hub for US buyers, while the country’s export market is the hotspot to sell clothing items.
Why do US brands choose Bangladesh
Now, the question is, why do buyers come here to buy clothing items? What are the secrets that attract US brands to shun other countries?
In its 40-year journey, the apparel exporters have established long-term trade relationships and trust. Bangladesh has been exporting garments to the United States for over three decades. Renowned and leading US brands and retailers such as Wal-Mart, Gap, PVH, Target, and Levi’s have established long-term supply chain relationships with the country. Bangladesh also ensures on-time delivery, consistent quality, and offers competitive prices.
On top of that, Bangladesh is highly capable of producing high-quality garments at reasonable costs. While wages are somewhat lower compared to other major competitor countries in South and Southeast Asia. Meanwhile, the sector saw improvements in worker skills, training, and the use of modern machinery and technology.
Resultantly, Bangladesh offers strong “value for money,” which is highly attractive to U.S. brands. Bangladesh has also made significant improvements in factory safety, workers’ rights, and environmentally friendly production.
In the case of environmentally friendly manufacturing, Bangladesh is a role model in the world. Many factories are LEED-certified green factories, meeting the ESG (Environmental, Social, Governance) standards required by U.S. brands.
In addition, Bangladesh is the second-largest apparel exporter in the world, with a large volume of executing capacity. The country manufactures everything from basic everyday t-shirts to high-value fashion items, jackets, sportswear, and denim. This product diversity has made Bangladesh a “one-stop sourcing destination” for U.S. buyers.
There is room to grow further
The United States has a large population with purchasing capacity. According to World Population Review data, the total population of the US is about 347.3 million as of now.
In 2024, US buyers imported apparel products worth $79.24 billion from the world market, of which $7.34 billion was from Bangladesh. Bangladesh’s share in US apparel imports is 10 percent, and it is the third largest exporter to the country after China and Vietnam.
In recent months, Bangladesh’s export trends in the US market have been on a higher note. From January to June 2025, Bangladesh’s apparel exports to the United States reached $4.25 billion, up from $3.4 billion during the same period in 2024. This marks a year-on-year growth of 25.13%, according to the Office of Textiles and Apparel (OTEXA) data.
Recently reciprocal tariff rate for Bangladesh competitors, including China, Vietnam, India, Pakistan, and Cambodia, has also created an opportunity for Bangladesh.
Now it raises a question of how Bangladesh can earn more from the US market, as it is holding only a small portion of the market share.
With US-China trade tensions or conflicts, Bangladesh must further position itself as a stable alternative and be equipped properly to capitalize on the opportunities.
First, we have to target the buyers and investments that are relocating their business to other countries due to the rise in cost caused by the tariffs.
Secondly, we also have to identify what kind of products are shifting from China. Then build production capacity to cater to buyers’ demands. Diversification of goods in line with the consumers’ taste and value-added products will play a pivotal role.
To brand Bangladesh, we should promote its cost-efficient production capabilities to attract more US buyers. Focus should be given to sustainability and workplace compliance, as we have the highest green factories, which are 516. Meanwhile, no option to ignore ensuring labor rights as consumers are more aware of it.
Investment in technology upgradation, automation, and eco-friendly technologies is necessary for long-term and sustainable growth.
Besides, concentration on developing a capable backward linkage industry is a must.
Improving logistics and customs processes will ensure faster delivery and better service for US buyers. So, the government has to improve port efficiency, and more investment should be made for infrastructural development with quick competition targets.
Improving bilateral trade relations with the US government is vital here, as different types of trade benefits and reducing reciprocal tariffs will be highly dependent on it.
If we address these issues properly, there is no limit to our growth and surpassing the number one apparel exporter in the US market.
For details, click in
Why the US market matters for Bangladesh’s apparel sector – The Bangladesh Today