Tough competition in EU hits Bangladesh RMG exporters' profit margins

17 Nov '25

2 min read

Tough competition in EU hits Bangladesh RMG exporters' profit margins

Pic: Shutterstock/Rehman Asad

Insights

As China, Vietnam, Cambodia and Pakistan compete with Bangladesh to grab more share in the EU garment market due to US reciprocal tariffs, experts feel the trend may squeeze margins and undermining profitability of Bangladesh garment exporters.
Other key destinations where garment exports have been diverted include Japan and Canada.
Bangladesh has holding over 20-per cent share in the EU apparel market.

As China, Vietnam, Cambodia and Pakistan—all major competitors of Bangladesh in the garment export business—display heightened focus on the European Union (EU) market due to US reciprocal tariffs, experts feel the trend may intensify price competition there, squeezing margins and undermining profitability of Bangladesh garment exporters.

Bangladesh has holding over 20-per cent share in the EU apparel market.

Other key destinations where exports have been diverted include Japan and Canada.

Eurostat data show China, on an average, shipped garments worth €1.87 billion (~$2.17 billion) each month to the EU from January to June this year, while the average shipments rose to €2.82 billion in the July-September period. Hence, the country’s overall garment shipments to the EU were worth €19.76 billion during the first nine months this year.

On the other hand, Bangladesh's average single-month apparel-export earnings from the EU during the July-to-September period stood at €1.64 billion, while the average monthly receipt was €1.71 billion during the first six months this year.

The country started 2025 with €1.91 billion worth of garment exports to the EU in January, while the highest income of €2.11 billion occurred in March. Export performance continued falling since April, save July and September, domestic media reported

Over apparel exports from the country fetched €15.25 billion, seeing a 13.17-per cent growth during the January-September period.

However, the single-month earnings missed the March mark.

ALCHEMPro News Desk (DS)

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