Bangladesh's ready-made garment exports to the United States fell 6.25 per cent year-on-year in the first seven months of 2026, as the country struggled to benefit from shifting orders away from China.
While Cambodia and Indonesia recorded growth, Bangladesh's shipments declined amid competition from regional suppliers, supply chain constraints and domestic energy shortages, according to US apparel import data.
The country fetched US$4.65 billion during the January-July period of 2026, compared with US$4.96 billion in the same period of 2025, according to data released by the Office of Textiles and Apparel (OTEXA) on September 3.
Despite brief growth spurts in May (6.03 per cent) and June (5.66 per cent), double-digit contractions of 17.05 per cent, 17.14 per cent and 10.72 per cent in February, April and July respectively severely pulled down total export receipts.
Industry insiders said Bangladesh had failed to capture China's diverted market share, while regional competitors Cambodia and Indonesia capitalised on the shift.
US apparel imports from key Asian supplying nations displayed a stark divergence through July 2026, with traditional manufacturing giants China and India experiencing steep pullbacks, OTEXA data analysis showed.
China recorded the most dramatic downturn among major suppliers, with its year-on-year apparel exports to the United States plummeting 34.11 per cent to US$4.55 billion in the first seven months of 2026, compared with US$6.91 billion during the same period in 2025.
India similarly faced a significant pullback, with its shipments declining 25.65 per cent to US$2.45 billion from US$3.30 billion in 2025.
In contrast, Cambodia emerged as the standout performer in the region.
The nation posted a 10.89 per cent expansion in year-to-date export values, reaching US$2.62 billion compared with US$2.36 billion in the previous year.
Indonesia also sustained positive momentum, recording a 3.10 per cent increase in apparel shipments to US$2.74 billion during the first seven months of 2026.
Market giant Vietnam, however, demonstrated relative stability, recording a minor year-on-year value contraction of 0.68 per cent to US$9.37 billion, compared with US$9.43 billion in 2025.
Pakistan recorded a 5.44 per cent decrease to US$1.27 billion during the January-July period of 2026.
The pronounced divergence reflects ongoing supply chain realignments among American brands and buyers seeking to diversify risk, manage tariff exposure and reallocate orders across Southeast and South Asian hubs, industry people opined.
Talking to the FE, a good number of exporters said Vietnam remained the primary alternative to China for higher-value and complex garment categories.
Cambodia emerged as the relative winner, leveraging a double-digit surge to absorb displaced low-to-mid-tier orders, particularly in basic wovens and activewear, they noted, adding that Indonesia maintained positive momentum, presenting US buyers with a reliable alternative hub for mid-market apparel.
Explaining the key structural factors holding Bangladesh back, they said China's exit had left a vacuum primarily in synthetic and technical apparel, or man-made fibres (MMF).
Vietnam and Cambodia possess mature MMF supply chains, whereas Bangladesh remains heavily reliant on basic cotton knitwear, limiting its ability to pick up China's former product lines, they said.
Besides, US buyers are prioritising supply chain agility and favouring Southeast Asian ports, which offer shorter transit times to the US compared with Bangladesh's longer shipping routes and domestic feeder-port bottlenecks.
Domestic energy shortages, wage restructuring debates and political transition pressures in Bangladesh during recent cycles created buyer hesitancy, prompting American brands to hedge their sourcing allocations towards Vietnam, Cambodia and Indonesia, they noted.
Talking to the FE, BGMEA Senior Vice President Inamul Haq Khan said Bangladesh was marginally doing better than other countries, but Cambodia, Vietnam and Indonesia had taken the lead in recent months.
Buyers depend on Bangladesh for large work orders because of its capacity, while they prefer those nations mostly for small-sized orders, he said, describing Egypt as the next performer as buyers find it possible to receive goods from there within the shortest possible time, mostly for the EU market.
Talking about gas supply, he lamented that, despite being one of the major stakeholders, they were still in the dark, as no concrete information on gas supply was being conveyed by the concerned authorities.
"Members are worried and we have no information on when the existing situation will improve," he noted.
Mohiuddin Rubel, a former BGMEA director, said Bangladesh's performance, compared with the 8.28 per cent fall in overall US apparel imports during the period, was not that poor.
"Bangladesh can grab more Chinese and Indian orders if it sustains its competitiveness, which has been eroding for various reasons, including internal factors such as the energy crisis," he said. He, however, said that although Indonesia and Cambodia had recorded positive growth, their earnings were far below those of Bangladesh.
The new generation of American consumers are choosing more sustainable and used apparel, which lowers imports but raises domestic sales, Mr Rubel noted.
