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Bangladesh’s readymade garment (RMG) exports to Canada have remained largely stagnant over the past two years, while Vietnam has emerged as the second-largest apparel supplier to the North American country, surpassing Bangladesh.

According to International Trade Centre (ITC) Trade Map data, Bangladesh shipped garments worth $1.41 billion to Canada in 2024, slightly down from $1.43 billion in 2023. In contrast, Vietnam earned $1.61 billion in 2024, up from $1.53 billion in 2023, after surpassing Bangladesh in 2022 due to duty-free access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). China remains the top exporter, fetching $3.18 billion in 2024.

Economists and industry insiders attribute Bangladesh’s stagnant exports to multiple factors:

• Sluggish Canadian demand amid currency devaluation against the US dollar.
• Increased competition from Vietnam, India, and Cambodia, particularly as new US tariffs affect the global supply chain.
• Perception challenges, with Bangladesh still seen primarily as a supplier of basic, low-cost garments, limiting access to Canada’s premium apparel market.

Faruque Hassan, former BGMEA president, highlighted that Bangladesh could still expand its market share with government support, policy incentives, lower bank interest rates, and technology upgradation funds, especially as the country approaches LDC graduation in November 2026, which could impose 17–19% duties on current duty-free exports.

SM Khaled, managing director of Snowtex Apparels, noted that exports to Canada have been affected by the COVID-19 pandemic, the Russia-Ukraine war, and US tariffs, while Shah Rayeed Chowdhury, BGMEA director, stressed the need to improve buyer perception through trade missions, fairs, and dialogues.

Dr Mohammad Abdur Razzaque, chairman of RAPID, said Bangladesh could capture shifting work orders from China, but competition from India, Vietnam, and Cambodia, especially with tariff advantages, will remain challenging. Bangladesh may, however, enjoy a three-year transition period with duty benefits until 2029 after LDC graduation.

Despite these hurdles, Canadian buyers continue to place orders, making the market a stable but competitive destination for Bangladeshi garments.