Bangladesh’s RMG exports increase 5.12pc amid war situation
Bangladesh's ready-made garment exports grew by more than 5 percent despite the ongoing global economic challenges triggered by the Iran-USA conflict and Russia-Ukraine war.
Stakeholders said, though the achievement is lower than the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) target to grow 15 percent.
Policy support needs for further growth
They said the export will be increase more if the government provide the policy supports, the BGMEA and the BKMEA demanded for long.
Export Promotion Bureau data showed that Bangladesh's ready-made garment exports to the world stood at $7,495.61 million in July-August of FY2026-27, up 5.12 percent from $7,130.67 million a year earlier.
The data showed, knitwear grew faster than woven, up 6.17 percent to $4,193.76 million against woven's 3.81 percent rise to $3,301.85 million.
Big leap in USA market
The growth was uneven across markets.
The United States led among major destinations, up 11.42 percent to $1,612.92 million, lifting its share of Bangladesh's total exports from 20.30 to 21.52 percent. Non-traditional markets grew almost as fast, up 6.48 percent to $1,223.19 million, also gaining share.
The European Union, still the largest single destination bloc, grew just 2.46 percent to $3,493.91 million and saw its share slip from 47.82 to 46.61 percent. The UK (+3.74 percent) and Canada (+3.37 percent) roughly held their share.
Turkiey market expands
Among non-traditional markets, Turkiye stood out with exports nearly doubling, up 94.68 percent to $99.98 million — the fastest growth in the dataset. Brazil (+34.37 percent) and the UAE (+24.21 percent) also posted strong gains, while Russia (-33.95 percent), China (-16.04 percent) and India (-7.64 percent) declined sharply.
Slow in EU market
Within the EU, Germany — the bloc's largest buyer at $804.74 million — was essentially flat (+0.88 percent), while the Netherlands (+8.47 percent) and Spain (+11.61 percent) grew solidly. France (-5.39 percent) and Portugal (-18.93 percent) were notable decliners.
Overall, the data points to US-bound exports and non-traditional market diversification driving early FY2026-27 growth, while the EU — still dominant by volume — expands more slowly and loses relative share.
What experts suggest
When contacted, Mohiuddin Rubel, Founder & CEO, Bangladesh Apparel Voice and former Director of BGMEA told Asia Post, “Despite the global recession like economic situation amid the war, the RMG exports have increased. The 5 percent grow of the exports is not less but also significant.”
The business leader said, “We have done well in the American market while the EU market is still on struggle due to less demand. But exports to the new markets are encouraging.”
He said there are opportunity still remaining to further grow of the exports to the new markets, but the government has to provide policy supports the BGMEA and the BKMEA demanded for long.
The BGMEA and the BKMEA leaders has called to the government to realise several of their demands for surviving and boosting exports in the changing trend of the world market.
The apparel exporters have demanded to reduce the existing withholding tax on garment exports from 1 percent to 0.65 percent and kept that unchanged for the next five years.
They also demanded to make zero percent tax on cash incentives.
They also demanded bank liquidity facility including soft loan providing to pay wages and bonus for workers, to withdraw tax on importing man-made fibers, tax reducing from sub-contracting factories, keeping stability on income tax rates to the factories, uninterrupted gas and power supply, fast release of the due cash incentives and such others.