Key Highlights
- 🇧🇩 Bangladesh remains the second-largest apparel supplier to the US.
- 📉 Apparel exports declined by 8.1% during January–May 2026.
- 🇨🇳 China’s apparel exports to the US plunged by 42.8%.
- 🇻🇳 Vietnam further strengthened its position as the largest supplier.
- 📈 Bangladesh recorded 6% export growth in May, signaling a possible recovery.
Despite a challenging start to 2026, Bangladesh has successfully retained its position as the second-largest apparel exporter to the United States, according to the latest data from the US Office of Textiles and Apparel (OTEXA).
Between January and May 2026, Bangladesh exported apparel worth US$3.25 billion to the US, representing an 8.1% decline compared with the same period last year. However, the country’s performance remained stronger than the overall US apparel import market, which contracted by 9.3%, demonstrating Bangladesh’s resilience amid weaker global demand.
Vietnam further strengthened its position as the leading supplier, increasing exports by 1.5% to US$6.39 billion. In contrast, China’s exports to the US fell sharply by 42.8% to US$2.80 billion, reflecting the continued impact of US tariffs and the ongoing diversification of sourcing by international retailers.
While China continued to lose market share, countries such as Indonesia and Cambodia capitalized on the changing sourcing landscape. Indonesia recorded 5.5% export growth, while Cambodia emerged as the fastest-growing major supplier with an impressive 14.9% increase. Meanwhile, India’s exports declined by 26.4%.
Although Bangladesh maintained its ranking, the data suggests that the country has not yet captured a significant share of the sourcing shift away from China, as several regional competitors expanded at a faster pace.
Encouragingly, the latest monthly figures indicate improving momentum. Bangladesh’s exports to the US grew by 6% in May 2026, outperforming the overall US apparel import growth of 2.8%, suggesting that buyer demand may be recovering after the slow start to the year.
In terms of shipment volume, Bangladesh exported 1.09 billion square metre equivalents (SME) during the January–May period, down 6.2% year-on-year. Meanwhile, the average export price declined by only 2% to US$2.99 per SME, indicating that exporters largely maintained pricing discipline despite softer demand.
Price Comparison
Bangladesh continued to maintain a competitive pricing position in the US market. With an average export price of US$2.99 per SME, the country remained above China (US$1.43), Pakistan (US$2.59), and Cambodia (US$2.91). However, it remained below Vietnam (US$3.39), India (US$3.41), Honduras (US$3.64), Indonesia (US$3.77), and Mexico (US$4.45).
China continued to offer the lowest-priced products among major suppliers, reflecting its focus on high-volume, low-cost manufacturing. Mexico maintained the highest average export price, supported by its proximity to the US market and its greater concentration of value-added apparel.
Overall, Bangladesh’s relatively stable pricing suggests that the decline in exports was driven primarily by lower shipment volumes rather than aggressive price reductions, highlighting the country’s ability to preserve value even during a softer market.
