The current trade war between the U.S. and China has given a chance to other countries to bolster their economy by expanding their export base in the world. It has opened up doors especially for the developing nations such as Vietnam, Bangladesh, and Indonesia in textile exports as they have the advantage of a young demographic dividend and an established infrastructure. In this context, one of the biggest advantages lies with the South Asian nation, Bangladesh.
Current Market Dynamics At International Level Canbolster Bangladesh’s Textile Exports
As per the recent reports of the International Monetary Fund (IMF), Bangladesh is the second-fastest growing economy in the world and is expected to grow at 7.3% this year. Currently, China is losing ground, owing to its increasing production value, which opens an immense prospect for Bangladesh to seize more market share. However, what adds value to the current scenario is that over the years, Bangladesh has built excellent infrastructure to ensure more transparency in its supply chain and thus has managed to cater to the international consumers efficiently.
The South Asian nation has the world’s 2nd largest Readymade Garment (RMG) export, just behind China. 81% of the country’s exports belong to the RMG sector, and the textile sector contributes around 20% to Bangladesh’s GDP.
With an aim to double total exports to $72 billion by 2024, Bangladesh’s recent rise in overseas sales in the textile sector is very likely to strengthen its GDP. This hasn’t been an easy journey for the nation and has become plausible with the continuous efforts of both the public and private sector.
In this endeavor, the Government of Bangladesh has been actively meeting the officials of Japan, Korea, and the EU to expand the trade market of the country. In addition to this, Beximco Group, the largest conglomerate in Bangladesh, has also worked extensively in gaining market leadership in high value-added apparel in the US and Europe. It is due to such efforts, Bangladesh enjoys duty- free access to the EU, the USA, Australia, etc., for the trade of multiple products.
According to Salman F Rahman, one of the top businessmen in Bangladesh and a parliament member, “the export basket must be diversified, without excluding apparel products”. The chances for Bangladesh to become the number one exporter of garments in the world can increase with improvement in technology.
Market share of Bangladesh, in over $500 billion global garment sector is over 5%, as per the statistics of the International Trade Statistics of the World Bank. Such figures portray the country’s apparel exports in a positive light. Constant development in the sector, owing to the favorable government policies, and global attention can only expedite these numbers. One thing that has to be given attention is the workforce employed in the industry. The government can improve the living standards and salary of its garment workers.
There is also a requirement for a technology advancement plan which focuses on the skill development of the workers through regular training programs. For this, the Sheikh Hasinaled Awami League government recently also met the officials from Japan for setting up a possible youth training center. Official meetings like these can bring about an increase in investment to attain desirable growth in the nation. This can increase exports in the garment sector and possibly bring Bangladesh closer to China in the near future.