RMG Value Addition Drops to 55.4% in Jul-Mar FY24

Bangladesh's readymade garment (RMG) exports reached $32.64 billion in the first 10 months (July-April) of FY2024-25 — a 10% increase from $29.67 billion in the same period last year, despite political instability. The European Union remained the top destination

Fourteen Bangladeshi garment exporters remain unpaid for apparel shipments worth $7.6 million to Russia over the past year due to international transaction complications triggered by US sanctions. Attempts to reroute payments through China have failed, said Mohammad Hatem, President of BKMEA, who urged the government to resolve the issue by either adjusting the dues against Rooppur Nuclear Plant payments or introducing a barter system.

Bangladesh’s garment exports to the European Union—its largest market accounting for 79 percent of total RMG shipments—are facing intensified competition as regional rivals like China, Vietnam, Cambodia, and Pakistan shift focus from the US to the EU amid a new US tariff regime. This diversion is expected to drive down prices and margins in the EU market

A recent study by STITCH and BRAC University reveals that nearly 32% of readymade garment (RMG) factories in Bangladesh have not implemented the revised minimum wage of Tk 12,500–12,800, mandated since December 2023. All non-compliant factories are located outside Export Processing Zones (EPZs), while EPZ-based and larger factories showed full compliance.

Bangladesh’s garment industry, central to the global supply chain, aims to become a $100 billion manufacturing hub, but progress hinges on worker welfare. Despite innovations and product diversification, the sector faces challenges including buyer-imposed price pressures, high compliance costs, weak labor unions, and rising operational expenses.

Bangladesh’s readymade garment (RMG) exports to the European Union (EU) soared by nearly 37% year-on-year to $3.69 billion in January–February 2025, supported by a 39% rise in shipment volumes. Despite this impressive growth, average unit prices fell by 1.46%, reflecting ongoing profitability challenges.