Published: 12:24 AM, 22 July 2026
RMG Exports Slow Down Amid Surging Rivals
Amir Mohammed Khosru
The Ready-Made Garment (RMG) industry is the principal driving force of our economy. Nearly four-fifths of our total export earnings come from this single sector, and the direct and indirect livelihoods of several million people depend on it. For many years, we have maintained our position as the world’s second-largest apparel exporter after China. However, recent statistics indicate that although we have retained this ranking, the pace of our export growth has slowed alarmingly. At the same time, competing countries such as Vietnam, Cambodia, Pakistan, India, and Indonesia are moving ahead rapidly. As a result, our competitive position in the global apparel market is facing renewed challenges.
According to the latest data from the World Trade Organization (WTO), we exported ready-made garments worth US$36.82 billion in 2025. Compared with the previous year, export growth was only 0.89 percent. During the same period, however, global apparel trade expanded by 4.46 percent. This means that although the global market continued to grow, we were unable to capitalize on the expanding opportunities as expected.
Even more concerning is the fact that our major competitors are growing at a much faster pace. In 2025, Cambodia recorded the highest apparel export growth at 16.88 percent. Vietnam ranked second with 10.53 percent, followed by Pakistan at 6.83 percent, Indonesia at 5.79 percent, and India at 5.47 percent. In comparison, our export growth remained below one percent. This stark disparity clearly demonstrates that competition in the global apparel market has become more intense than ever before.
On a positive note, we remain the world’s second-largest apparel exporter. Although we slipped to third place in 2023, we regained the second position in 2024 and successfully retained it in 2025. China continues to be the world’s largest apparel exporter. However, China’s share of the global apparel market has been declining steadily. In 2025, China’s market share stood at 27.55 percent, down significantly from 30.55 percent in the previous year. Meanwhile, our global market share also declined from 6.76 percent to 6.56 percent.
Vietnam has emerged as the biggest beneficiary in filling this gap. The country’s global market share has increased consistently over the past three years. It rose from 5.81 percent in 2023 to 6.17 percent in 2024 and reached 6.53 percent in 2025. This means that the gap between us and Vietnam has become extremely narrow. If the current trend continues, Vietnam may challenge our position in the very near future.
Several strategic factors have contributed to this situation. Production costs have increased significantly. Rising expenses for energy, electricity, gas, transportation, and bank financing have made our manufacturing costs comparatively higher than those of many competing countries. Moreover, the unreliable supply of gas and electricity continues to disrupt production planning. At the same time, global buyers are no longer looking only for low-cost products; they increasingly demand faster delivery, sustainable production, environmentally friendly factories, and technology-driven services. In these areas, Vietnam and Cambodia have strengthened their capabilities much more rapidly.
On the other hand, we still depend largely on cotton-based apparel production. We have not yet made the expected progress in high-value segments such as synthetic garments, sportswear, technical textiles, and fashion-oriented diversified products. Consequently, we have been unable to fully capitalize on emerging opportunities arising from changing global consumer demand.
Recent changes in global trade have also created new challenges for us. Free Trade Agreements (FTAs), regional economic partnerships, and preferential tariff arrangements have provided Vietnam and several competing countries with significant advantages. Furthermore, as we graduate from the Least Developed Country (LDC) category, we will gradually lose duty-free market access in many export destinations. Therefore, enhancing competitiveness has become an unavoidable necessity.
Nevertheless, we continue to possess several significant strengths. We are home to many of the world’s leading green garment factories. A skilled workforce, decades of industrial experience, a strong entrepreneurial community, and large-scale production capacity remain valuable national assets. With appropriate policy support, improved infrastructure, and greater investment in technology, these strengths can be utilized even more effectively.
Industry leaders have long been emphasizing several priority areas. These include ensuring uninterrupted supplies of gas and electricity, modernizing ports and customs operations, reducing transportation costs, providing easier access to financing, diversifying exports, and developing a more skilled workforce. At the same time, increasing investment in research and development (R&D), automation, and digital technologies has become an urgent necessity.
We must establish ourselves not only as a manufacturing hub but also as a center for design, innovation, and branding. The future of global competition will depend on value addition rather than low labor costs alone. International buyers are increasingly prioritizing Environmental, Social, and Governance (ESG) standards, carbon emissions reduction, traceability, and labor compliance. We have already made notable progress in these areas, but these achievements need to be further expanded and strengthened.
Government policy support is equally important. In the post-LDC era, we should prioritize negotiating preferential trade agreements with the European Union, the United Kingdom, Canada, and other emerging markets. At the same time, creating a more investment-friendly environment and ensuring long-term policy stability for exporters will be crucial. Administrative reforms aimed at reducing the cost of doing business are also essential.
Our apparel industry has successfully overcome several major global crises, including post-Rana Plaza safety reforms, the COVID-19 pandemic, and the global economic slowdown. These experiences demonstrate the industry's remarkable ability to adapt. However, the current challenge is fundamentally different. Simply increasing production will no longer be sufficient. Simultaneous improvements in productivity, innovation, technology, supply chain efficiency, and market diversification will be required to remain competitive.
We still hold the second position in the global apparel market, but this position can no longer be taken for granted. Sluggish export growth and a declining global market share serve as clear warning signals. At the same time, the rapid progress of competing countries demonstrates that there is no permanent leadership in the global apparel industry. Future success will depend on competitiveness, efficiency, innovation, and sound policy preparedness.
Therefore, if we can take coordinated initiatives now to control production costs, ensure energy security, invest in technology, enhance workforce skills, diversify products, and expand into new markets, we will not only retain our position as the world’s second-largest apparel exporter but also strengthen our standing in the global apparel trade. Otherwise, today’s slow growth could evolve into a far more serious challenge in the future—and our competitors will be ready to seize that opportunity.
Amir Mohammed Khosru is a
banker and a columnist.
