12 November 2022, Mumbai:
Bangladesh is the second-largest apparel/clothes supplier to the EU and the world. The business environment thus far is optimistic and the fact of the matter is they are looking at seizing the emerging opportunity of "China Plus One Or Friend Shoring" evolving world's geopolitics landscape presents in the efforts to make the supply chain resilient. Placing it on record, the nation exports ‘Made in Bangladesh’ apparel in excess of 160 countries globally.
The industry’s quest for excellence coupled with strong determination and concrete actions has earned Bangladesh glory as one of the safest, green, and ethical garment sourcing hubs in the world.
BGMEA: A vision for a sustainable future, a better future
According to BGMEA, Bangladesh's website," The readymade garments industry (RMG) has a catalytic action for the economic development of the nation and is a critical economic force multiplier since last few decades. The proud "Made in Bangladesh" tag has also brought fame, and glory to the country, earning it a prestigious place & stature connecting this brand across the global supply chains making it a credible partner to global brands, retailers, and wholesalers of repute through the years.
Furthermore, a nation, which was once termed by cynics a "bottomless basket" has now become a "basket full of wonders." The country with its limited resources in the textile supply chain and being dependant on key raw materials from other nations has incredibly been achieving a respectable 6% annual average GDP growth rate supporting it and bringing about remarkable social and human development in its changing economic and demographic landscape".
Recently the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has unveiled its vision -- a vision for a sustainable future, a better future. It duly realizes the growth of the RMG industry needs to be pursued in a manner that is sustainable and positively impacts the lives of people and the planet, we are committed to marching ahead in that direction.
According to BGMEA and BKMEA, both leading apparel trade associations boast of Bangladesh is currently home to having the maximum greenest garment factories in the world and, have consistently maintained their sustainable commitment toward the "Green Industry Initiative" which is a major goal driving sustainable industrial development there.
EU proposed sustainable fashion legislation & Bangladesh Bangladesh is consistently moving toward sustainability, and the country's apparel industry is well-positioned to deal with the EU's decision. According to the new guidelines from Brussels, Bangladesh is moving toward sustainability, according to brands like H&M, M&S, G-Star, and others collaborating with Bangladeshi manufacturers. Ziaur Rahman, regional country manager for H&M's Bangladesh, Pakistan, and Africa regions, told the Dhaka Tribune that they are pleased with publishing the Textiles Strategy and anticipate a more environmentally friendly fashion business. As the clamour for decarbonization gathers pace at present COP27 @ Egypt.
Data points
Garment exports, the lifeblood of Bangladesh's economy, and foreign earnings increased by 30.36 percent to US $ 35.81 billion in the calendar year 2021, the highest level ever (earnings from apparel exports in 2020 were US $ 27.47 billion).
As per the latest statistics, the RMG export of Bangladesh reached US$10.27 billion during the mentioned period, up from US$9.05 billion in July- September of FY 2021-22 indicating 16.61% year-over-year growth.
A category-wise disaggregated analysis shows that the export of knitwear was US$ 5.64 billion with 9.40% growth. At the same time, the export earnings from woven garments reached US$4.62 billion with 18.73% growth compared to the same period of FY 2021-22.
If one were to analyze the data for the single month of September 2022, the country’s RMG export declined by 7.52% that means in September 2022 the RMG export dropped to US$ 3.16 billion from US$ 3.41 billion in September 2021. The decline in export growth is recorded first in past 14 months.
Indian Garment Import From Bangladesh
Bangladesh is fast emerging as a highly lucrative market for Indian consumers looking to buy cheap ready-made garments. India's garment imports totaled $ 777.35 million in the first nine months of this year, up 25% year on year.
According to the Ministry of Commerce and Industry (India), woven garment imports have remained stable, increasing by just 6.75 percent in the first nine months of 2021, with imports valued at US $ 402.75 million.
The removal of the primary custom tax on garment imports from Bangladesh, according to Confederation of Indian Textile Industry head Sanjay K Jain, is the crucial cause for the import surge.
India has requested that Bangladesh abolish tariffs on its garment imports, claiming that the two countries can take 35 percent of the global textile market in the next five years, displacing China.
Given the high tariffs on Indian textiles and apparel export items, China has a 54 percent share of imports in Bangladesh, while India has a 17 percent stake. Earlier Tripura's Chief Minister, Biplab Kumar Deb, stepped forth to welcome Bangladeshi garment makers to invest in the state, recognizing the potential of the state's manufacturing industry.
BGMEA, Faruque Hassan stated earlier that," Bangladesh’s garment export to India will continue to grow". The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI): Bangladesh’s exports to India to grow to a record high by FY22.
Made in Bangladesh Week
In the pursuit to drive excellence, the nation is launching currently “Made in Bangladesh Week”, from 12th to 18th November this year heralding a message of resilient supply chains the country offers. The event is being organized by Bangladesh Garment Manufacturers & Exporters Association (BGMEA) in partnership with Bangladesh Apparel Exchange (BAE). It is a week-long physical comprehensive initiative that strives to demonstrate and present a slew of shows spanning summits, expositions, exhibitions, awards, factory tours, cultural shows to networking dinners.
For World’s 2nd largest apparel-exporting country, Bangladesh it is a demonstrability presenting it as a signature event in its journey of driving excellence. The ‘Made in Bangladesh Week’ is designed to bring under one roof all the stakeholders of the Bangladesh apparel industry in its coherent & collaborative approach presenting an immense opportunity to discuss sector prospects and laydown roadmap as we move ahead in a world where uncertainty is new certainty.
Way forward
Imponderables; Vietnam surpassed Bangladesh in 2020 to become the second-largest readymade garment exporter after China, shipping apparel worth US $ 29 billion all over the world. According to the BGMEA, Bangladesh regained its position in the first half of 2021. Vietnam's garment exports have expanded rapidly in recent years compared to Bangladesh.
BGMEA reported earlier this year," Given the current global economic situation, export growth may falter further in the coming months. Retail sales in our major export markets have already been affected by high inflation and other economic turmoil".
Trade associations in Bangladesh state unequivocally that nation has a greater chance of catching up "If exporters here can diversify their products and our government inks some new free trade agreements,"
There is near unanimity in the view next phase of Bangladesh's development will hugely depend on industrialization and the government's initiatives of developing infrastructure and enhancing power generation will accelerate the industrial growth in the country.
