Exports grew by 20.6% in October
RMG orders are increasing as economies in major export destinations recover and previously shifted orders return, now that the situation has stabilised
Bangladesh's merchandise exports experienced positive growth for the second consecutive month, increasing by 20.6% year-on-year in October, primarily driven by readymade garment shipments despite production disruptions from prolonged labour unrest.
According to data from the Export Promotion Bureau (EPB), Bangladesh's export earnings in October FY25 reached $4.13 billion, compared to $3.42 billion in the same month last fiscal year after data revision, which was previously reported as $3.76 billion.
Under the previous government, export data was manipulated. The EPB later clarified that the $10 billion discrepancies in FY24 were due to factors such as duplicate export entries, issues with cutting, making, trimming during production, inclusion of discounts, stock lots and samples, and misclassification of EPZ exports as general exports in NBR data.
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Additionally, export receipts below LC values contributed to the mismatches.
In FY23, actual exports were $46.43 billion, while miscalculated data reported $55.55 billion. In FY24, actual exports totalled $44.46 billion, while the erroneous data reported $55.28 billion.
According to data released Sunday (10 November), in October FY25, the RMG sector generated $3.30 billion, marking a 22.8% increase from $2.68 billion in the same period of FY24, and accounting for 79.8% of total export earnings.
Knitwear contributed $1.86 billion, up 24.6% from $1.50 billion in October FY24, while woven garments earned $1.44 billion, a 20.54% increase from $1.20 billion in the same month of the previous fiscal year.
RMG exporters attributed the growth to two key factors – the recovery of major export destination economies, which has boosted sales, and the stabilisation of labour unrest in major industrial zones, prompting the return of some orders that had previously shifted to other countries.
Team Group Managing Director and former BGMEA Senior Vice President Abdullah Hil Rakib said the export growth reflects an increase in orders for Bangladesh.
Citing his own experience, he noted that all six of their manufacturing units are currently operating at full capacity with orders booked until January of next year, a period that typically has some capacity gaps.
Tanvir Ahmed, managing director of Envoy Textiles, said the textile mill operated at 92% capacity in the first quarter of the current fiscal year and has full-capacity orders for November to produce 4.5 million yards of denim fabric.
"We have good orders for next month as well; as of today, it looks like December will run very close to 100% capacity," he added.
He also noted that strong projections from major buyers for January onward should enable Envoy Textiles to continue operating at full capacity.
Tanvir further mentioned that most buyers are increasing their orders, indicating a strong performance outlook for the year.
According to EPB data, exports in the first four months of the current fiscal year grew by 10.8%, reaching $15.79 billion, up from $14.25 billion in the same period of FY24. The apparel sector contributed $12.81 billion, accounting for 81.2% of total merchandise exports.
Other sectors' performance
Among other major export sectors, agricultural products saw a positive growth of 7%, reaching $113.1 million, up from $105.8 million in October FY24.
PRAN Group Marketing Director Kamruzzaman Kamal said that agricultural product exports experienced moderate growth as sector shipments were affected in previous months due to political instability.
He added that ongoing global conflicts have also affected consumer demand, but he remains hopeful that exports will increase if the situation stabilises.
Kamal emphasised that local political stability is also essential for boosting exports.
Leather and leather goods saw a slight decline of 1%, totaling $83.2 million, compared to $84 million in October of the previous year.
In October of FY25, home textiles experienced a slight decline of 1.21%, totaling $185.52 million, down from $187.8 million a year ago.
Export receipts from jute and jute goods fell by 7.6%, reaching $78.9 million, down from $85.4 million in October FY24.
Footwear exports saw strong growth of 40.87%, reaching $42.91 million, up from $30.46 million in October FY24.
The pharmaceuticals sector also experienced a significant jump of 48.91%, totaling $21.19 million, compared to $14.23 million in October of the previous fiscal year.
