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Former BGMEA President Faruque Hassan has claimed that Bangladesh has fallen behind Vietnam to become the world’s third-largest ready-made garment (RMG) exporter, warning that the country’s key export sector is losing its competitive edge due to mounting financial, policy and operational challenges.
Speaking at an event on Saturday, Faruque urged all stakeholders to work together to restore Bangladesh’s position in the global apparel market.
“We must work together to regain our position,” he said at a programme held ahead of the board election of the Bangladesh Packaging Accessories Manufacturers and Exporters Association (BPAMEA).
However, Faruque’s claim differs from the latest 2025 World Trade Organization (WTO) report, which ranks Bangladesh as the world’s second-largest garment exporter, with Vietnam in third place.
Business leaders attending the event said the RMG industry is going through one of its toughest periods in recent years, citing rising production costs, financial constraints, policy uncertainty and administrative bottlenecks as key challenges.
Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell said manufacturers are grappling with financial and security-related difficulties, warning that the situation could worsen.
He also urged the government to maintain value-addition requirements for exports and existing restrictions on free-of-cost (FOC) imports, arguing that easing the rules could encourage greater dependence on imported raw materials instead of locally sourced inputs.
Russell called for government incentives to strengthen the competitiveness of domestic manufacturers.
Bangladesh Employers’ Federation (BEF) President Fazle Shamim Ehsan echoed the concerns, describing the current period as “extremely difficult” for the country’s garment industry, a view shared by other business leaders at the event.
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