New Delhi, Sep 21 — Bangladesh’s exporters are losing market share to regional rivals such as India, Vietnam and China as rising energy, financing and logistics costs erode profit margins, a report has said.
The report from Bangladesh-based The Daily Star said exporters find it hard to absorb such a pressure because of limited scope to pass higher costs on to overseas buyers, raising the risk of lost orders and shrinking market share.
Industry estimates showed production costs surged nearly 30-40 percent over the past several years, driven by higher gas and electricity prices, wages, interest rates and exchange-rate depreciation.
Bangladesh’s merchandise exports fell nearly 5 per cent in 2025 to $47.74 billion, official data showed, while Vietnam’s exports rose 16.8 per cent and China’s 5.5 per cent over the same period.
Industry estimates showed production costs surged nearly 30-40 percent over the past several years, driven by higher gas and electricity prices, wages, interest rates and exchange-rate depreciation.
Even a small difference in price can shift an order to competitors, industry leaders said, adding that escalating conflict in the Middle East and the US administration’s additional 10 percent tariff are now adding to the pressure on exporters.
Buyers may shift orders when Bangladesh’s free-on-board (FOB) price – the price before shipping and insurance – is just 1-2 percent higher than that of a competitor, the report cited an industry expert.
Such a price gap on a $4 garment would add up to a difference of $40,000-$80,000 on a one-million-piece order, said a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Chattogram Port’s tariff revision in 2025 amounted to an average 41 per cent in service charge hike, while charges for a 20-foot container increased 37 per cent to Tk 16,243 from Tk 11,849, according to Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Banks refrain from providing sufficient working capital or they take too long to process financing, despite government calls for support, the report noted.