Bangladesh apparel sector faces export challenges and calls for innovation

Bangladesh’s readymade garments (RMG) sector is facing significant competitive challenges in international markets. Recent trade data shows that between January and August 2026, apparel exports from Bangladesh to the United States fell by 4.43 percent to approximately $5.39 billion. This decline has resulted in China overtaking Bangladesh for the second-largest position among apparel exporters to the U.S., while Vietnam maintains the top spot.

In the European Union market, the average price of Bangladeshi apparel per kilogram dropped by 8.47 percent between January and July 2026. In contrast, Vietnam saw an average price increase of 11.76 percent during the same period.

To address these pressures and rising production costs, industry stakeholders are calling for a strategic shift from low-cost mass production toward technology integration, value addition, and productivity enhancement. The Textile Innovation Exchange (TIE) is organizing the Textile Innovation Expo 2026 in Dhaka this November to promote innovation-led manufacturing and help establish the country as a high-value destination for the textile industry.