Bangladesh’s exporters are increasingly losing market share to regional competitors such as India, Vietnam and China as rising energy, financing and logistics costs put pressure on profit margins, according to a report.
A report by Bangladesh-based The Daily Star said exporters were finding it difficult to absorb the rising costs, while their ability to pass the additional burden on to overseas buyers remained limited. This has increased the risk of losing orders and further shrinking Bangladesh’s share of global markets.
Industry estimates suggest that production costs have risen by nearly 30-40 per cent in recent years, driven by higher gas and electricity prices, rising wages and interest rates, and depreciation of the local currency.
Official data showed that Bangladesh’s merchandise exports declined by nearly 5 per cent in 2025 to $47.74 billion. In contrast, Vietnam’s exports grew 16.8 per cent and China’s increased 5.5 per cent during the same period.
The competitive pressure is particularly acute in the garment sector, where even a small difference in prices can influence buyers’ decisions. According to an industry expert cited by the report, buyers may shift orders if Bangladesh’s free-on-board (FOB) price is just 1-2 per cent higher than that of a competitor.
A former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that for a $4 garment, such a price difference could translate into an additional $40,000-$80,000 on an order for one million pieces.
Rising logistics costs have added to the exporters’ difficulties. Chattogram Port’s tariff revision in 2025 resulted in an average 41 per cent increase in service charges. Charges for a 20-foot container rose 37 per cent to Tk 16,243 from Tk 11,849, according to Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Fazlee Shamim Ehsan.
Exporters are also facing difficulties in securing working capital, with banks either reluctant to provide adequate financing or taking longer to process loans, despite government calls for greater support.
The report said escalating conflict in the Middle East and an additional 10 per cent tariff imposed by the US administration have further intensified the challenges facing Bangladesh’s export sector.
