Bangladesh loses second spot to Vietnam in global garment exports: Ex-BGMEA president
They cite rising production costs, financial constraints, policy uncertainty and administrative bottlenecks as key pressures threatening the industry’s competitiveness.
Bangladesh has slipped behind Vietnam to become the world's third-largest garment exporter, former BGMEA President Faruque Hassan claimed today (25 July), warning that the country's flagship export sector is losing competitiveness amid mounting financial, policy and operational challenges.
"We must work together to regain the position," Faruque said at a programme organised by the Bangladesh Packaging Accessories Manufacturers and Exporters Association (BPAMEA) ahead of its board election.
Although the latest World Trade Organization report still ranks Bangladesh as the world's second-largest garment exporter in 2025, with Vietnam a close third, business leaders at the event said the sector is facing one of its most critical periods in recent years.
Keep updated, follow The Business Standard's Google news channel
They cited rising production costs, financial constraints, policy uncertainty and administrative bottlenecks as key pressures threatening the industry's competitiveness.
Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell said manufacturers were grappling with multiple crises, including financial and safety challenges, warning that conditions could worsen. He also cautioned against relaxing restrictions on free-of-cost (FOC) imports and imposing value-addition requirements on exports, arguing that the measures could encourage imports rather than local sourcing. He urged the government to support domestic manufacturers through incentives.
Bangladesh Employers' Federation (BEF) President Fazlee Shamim Ehsan echoed the concerns, saying the apparel industry was "passing through a terrible time" – a sentiment shared by other business leaders.
Customs graft allegations add to industry's concerns
Former BPAMEA President Moazzem Hossain Moti alleged that corruption in Customs has become a major burden for exporters, claiming businesses are forced to pay bribes to renew bonded warehouse licences.
"Even a small business that imports only 50 tonnes of raw materials a year has to pay Tk20 lakh in bribes. Otherwise, the file is not renewed," he said, urging the authorities to expose and take action against those responsible.
BPAMEA President Md Shahriar echoed the concern, describing Customs as one of the biggest obstacles facing businesses.
The remarks came ahead of the BPAMEA board election on 1 August, where Shahriar is leading the Oikko Parishad panel comprising 25 director candidates.
