Bangladesh's apparel exports to the European Union plunged 16.43 per cent in the first half of 2026, far outpacing the bloc's overall import decline, as an energy crisis and intensifying competition from Vietnam and India put pressure on the country's biggest export market.
Data analysis released by Eurostat showed that Bangladesh fetched €8.64 billion during the January-June period of 2026, falling much faster than the contraction in the bloc's overall apparel imports.
During the corresponding period of 2025, Bangladesh's apparel exports to the EU stood at €10.34 billion.
European Union apparel imports fell 9.70 per cent year-on-year to €41.10 billion in the first half of 2026.
Exporters said the competitive challenge was particularly significant ahead of Bangladesh's graduation from the least developed country category, as they faced uncertainty over future preferential market access.
Data analysis showed that Bangladesh was struggling on both volume and pricing, with export volumes falling 8.22 per cent in the first half, accompanied by an 8.94 per cent reduction in average unit prices, squeezing overall earnings.
June earnings, however, offered a slight recovery, rising a modest 0.87 per cent year-on-year to €1.36 billion, compared with €1.35 billion in June 2025.
When asked, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), attributed the decline to the prevailing energy crisis, trade agreements between major competitors such as India and Vietnam and the EU, and uncertainty over market access and post-graduation duty arrangements.
Buyers are currently worried about timely shipments because of the severe gas crisis, while they are also concerned about trade benefits after Bangladesh's LDC graduation.
Besides, Bangladesh is facing stiff competition from India and Vietnam due to their free trade agreements with the EU, he said, adding that all these factors were prompting buyers to develop alternative sourcing destinations, with many preferring India.
Buyers are cautious about placing orders in Bangladesh, he said, claiming that the ongoing energy crisis had forced some buyers to relocate one-third of their work orders from Bangladesh as factories struggled to maintain production and ensure timely shipment of orders.
Data showed that China retained the lead, absorbing a milder 8.88 per cent decline than Bangladesh and generating €11.82 billion during January-June 2026.
China's unit prices fell 6.48 per cent to €19.83 per kg, helping protect its total export volume from a steep decline.
Vietnam, which outperformed its competitors, was the only major player to remain in positive territory, capped by a massive 21.89 per cent surge in June 2026 alone.
Vietnam fetched €2.06 billion during the first half of 2026, marking 0.36 per cent growth.
Vietnam's strategy relies on higher-value apparel, with the country recording the highest unit price among Asian suppliers at €29.32 per kg, a 13.43 per cent increase, the data showed.
Regional competitors such as Turkey recorded a 14.60 per cent decline, while India posted a 12.49 per cent fall and Cambodia an 8.84 per cent decline in the first half.
Meanwhile, Pakistan expanded its export quantity by 4.02 per cent, but aggressive price cuts, with its unit value falling 15.91 per cent to €10.68 per kg, ultimately drove total revenue down 12.53 per cent.
