International 05-09-2023 Hits: 952

Bangladesh's apparel exports: An overview

International 05-09-2023 Hits: 952

International 05-09-2023 Hits: 952

05 September 2023, Mumbai

Headwinds and tailwinds for Bangladesh's apparel exports

Headwinds:
- Devaluation of the national currency, making raw materials and machinery imports expensive
- Energy crisis
- Decline in orders and being squeezed price-wise
Tailwinds:
- US-China trade war, making Bangladesh a preferred replacement for China
- Bangladesh's move to portfolio diversification and value-added items
- Bangladesh's continued production during the pandemic
- Bangladesh's ability to move away from basic to value-added garments
- Bangladesh's efforts to meet sustainable standards

Good tidings for Bangladeshi exporters

A 15% year-on-year growth in apparel exports in April 2023
The US is the main driver of this growth, as it is reducing its reliance on Chinese imports
Bangladesh is also benefiting from the Sino-US trade war
However, Bangladesh is not the only country that is benefiting from this situation, and it is important to remain competitive

Bangladesh has remained dependable

Bangladesh continued production during the pandemic, even when other countries were shutting down
This earned the trust of importers, who are now looking to Bangladesh as a reliable supplier
Bangladesh has also shown its ability to move away from basic to value-added garments

The year 2023 may not live up to expectations

Despite the good news, the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is not convinced that 2023 will be a good year for apparel exports
This is because garment imports by the US and the EU have declined in the first five months of the year

Conclusion

Bangladesh's apparel exports are facing both headwinds and tailwinds in 2023
The country needs to continue to diversify its products and meet sustainable standards in order to remain competitive
However, the long-term outlook for Bangladesh's apparel exports is positive, as the country is well-positioned to benefit from the US-China trade war and the growing demand for apparel from emerging markets.