Bangladesh, remarkable growth in global RMG trade

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Market Desk (Bangladesh): Bangladesh’s share in global readymade garment (RMG) business more than tripled in the last 17 years and the country make its position as one of the largest suppliers globally.  

In 2005, the country’s share was 2.5% but it rocketed to 7.9% in 2022, data showed at World Trade Statistical Review 2023. Bangladesh shipped garment items worth US$ 4.82bn in 2000 and it rises in elevating earnings up to $45bn in 2022.

The knitwear segment currently can avail more than 90% of fabrics and yarn from domestic markets, which have cut the lead time by 4 weeks. Similarly, woven exporters can procure more than 40% of fabrics locally. Equally, the accessories sector meets 90% of the demand.

The China-US trade tension has worked in Bangladesh’s favor. So, its share has continued to widen and China is losing its grip. It is still the largest apparel supplier to the EU in terms of volume and the largest denim supplier worldwide.

Bangladesh’s reputation is predictable and supplier received a major boost during the peak of pandemic as country kept factories open most of the time, whereas many competitors had kept their industries closed for a longer period. It has also started producing high-end garment items like a jacket worth US$100 a piece. This was almost impossible a few years back.

The BGMEA has set a target to generate export earnings worth US$ 100bn and lift market share to 14% by 2030. Bangladesh is already a champion when it comes to eco-friendly apparel manufacturing units and has the highest number of green factories certified by the US Green Building Council.

Although the positive outlook, challenges such as gas and power crises still hold back in reaching the full export capacity but the industry remains optimistic about overcoming and continuing its upward track in the global RMG trade.

Finally, the US buyers, European and Japan retailers have started reducing sourcing from China and no doubt Bangladesh becomes the world’s second-largest RMG exporter with a significant capacity.

By Lisanur Rasul

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