DHAKA (Reuters) - Bangladesh's garment exports to the United States fell 4.5 percent last year because major competitors were able to cut prices while Bangladesh exporters had to raise prices in the absence of government support during the financial crisis, a leading exporter said Saturday 10 April.

"Bangladesh had better market in the U.S.A earlier, but now it is declining as the prices of our ready-made garment products increased there despite global recession," said Anwarul Alam Chowdhury, a leading exporter and former president of the Bangladesh Garment Manufacturers and Exporters Association.

"But our main competitors like China, India, Vietnam and Cambodia reduced prices to keep themselves competitive in the U.S.A market," Anwarul told reporters at a news briefing.

The United States is Bangladesh's biggest market for its ready-made garment exports, which totalled $3.3 billion in 2009.

Prices for Bangladesh-made garments increased 2.32 percent in 2009 while Cambodia's prices dropped 6.59 percent, China's fell 12.44 percent, India's dipped 4.68 percent and prices of garments from Vietnam dived 12.42 percent.

Anwarul said that competing countries offered lower prices after their governments provided stimulus last year unlike Bangladesh's government which, he said, failed to take timely decisions in the face of the global recession.

Vietnam and Pakistan devalued their currencies nearly 30 percent in 2009 while India devalued about 28 percent and cut interest rates, Anwarul said.

China, the largest apparel maker in the world, withdrew value added tax during the global economic downturn.

Anwarul said if the government spent only $210 million, local apparel makers would be able to reduce export prices by up to 3 percent.

Ready-made garments account for 80 percent of Bangladesh's total annual exports while the sector employs about 3 million people, mostly women.

Bangladesh has set this fiscal year's (July 2009-June 2010) export target at $17.6 billion, 13 percent above last year.

Exports rose 10.3 percent to $15.56 billion in the 2008/09 fiscal year, the lowest growth in six years.

(Reporting by Serajul Islam Quadir; Editing by Susan Fenton)