China, Vietnam outpace Bangladesh as EU garment exports tumble

Bangladesh’s grip on the European apparel market is weakening sharply, with garment exports plunging nearly 12 per cent in the first nine months of 2026 as intensifying competition from China and Vietnam, falling unit prices and shrinking global demand erode the country's market position.

Readymade garment (RMG) exports to the European Union (EU) dropped 11.91 per cent year-on-year to €13.48 billion during January-September, marking the steepest decline among the bloc’s 11 largest apparel suppliers.

The setback is particularly alarming as the EU’s overall apparel imports contracted by just 2.46 per cent to €70.72 billion during the same period, indicating that Bangladesh is losing market share far faster than the European market itself is shrinking.

Bangladesh forfeited €1.82 billion in export earnings, exceeding the €1.78 billion decline in the EU’s total apparel import market. Its market share consequently plunged to 19.06 per cent from 21.10 per cent a year earlier, according to Eurostat data compiled by Bangladesh Apparel Voice (BAV).

The widening gap between Bangladesh’s export performance and overall European demand suggests that the crisis goes beyond a slowdown in consumer spending. It points to deeper structural weaknesses in competitiveness, pricing, product diversification and the country's ability to respond to rapidly changing global sourcing patterns.

The downward trend intensified in September, when Bangladesh's apparel exports to the EU fell 9.49 per cent year-on-year, against a 2.72 per cent contraction in the bloc's overall imports. Bangladesh alone accounted for around 69 per cent of the market's total decline that month.

The deteriorating performance has raised fresh concerns about the country's ability to defend its position in its largest export destination at a time when global trade tensions, geopolitical uncertainties and aggressive competition are reshaping the apparel supply chain.

BGMEA President Mahmud Hasan Khan has previously identified global uncertainty, geopolitical tensions, weak demand, high interest rates, inefficient port operations and uncertainty surrounding Bangladesh's graduation from the least developed country (LDC) category as major challenges facing the industry.

He has warned that rising production costs and shrinking global demand are undermining the sector's competitiveness.

“Tariffs, wars and geopolitics have eaten up global demand, causing a decline in work orders,” he said in earlier remarks.

BGMEA Senior Vice-President Inamul Haq Khan has also pointed to mounting competition from China and India, saying their aggressive pricing strategies and changing sourcing patterns are putting additional pressure on Bangladeshi exporters.

Price competitiveness has emerged as another major vulnerability. Bangladesh's average export price fell 6.54 per cent to €13.70 per kilogram during the nine-month period, nearly 30 per cent below the EU average of €19.59. Export volume also declined 5.74 per cent.

BAV's analysis shows that falling unit prices accounted for slightly more than half of Bangladesh's lost export value. This means manufacturers are suffering a double blow: shipping fewer garments while receiving lower prices for each kilogram exported.