Will Bangladesh hit $100B apparel export by 2030?

In 2022 July, BGMEA set $100 billion target for apparel shipment by 2030. Considering Bangladesh exported only $42.61 billion in last financial year, this target means country needs to ship over $7 billion additionally per year from the current level to reach the goal. So does it make this an achievable goal keeping in mind that country had failed to achieve $50 billion target set for 2021?

Below points will encourage you to say "yes" to answer this question.

Firstly, significant orders will continue to shift to Bangladesh from China.

Secondly, we see growth of high value garments and new product area such as manmade fibre. Global mix of Cotton/MMF is 22/78 whereas BD mix is 74/26. So massive opportunity exists.

Thirdly, export of technical clothes and uniforms used by healthcare professionals and professionals in other service sectors is growing

Fourthly, Bangladesh is entering into new markets and growing with existing non traditional markets. In current fiscal year (till Jan),

• Increased exports to non-traditional markets have offset the fall in shipments to the US.
• Among the major non-traditional markets, exports to Japan soared nearly 46% YOY to $920 million.
• Shipments to other non-traditional markets were also higher with exports to Malaysia growing 92.7%, Brazil 64.1% and India 58% respectively.

Finally, we need to consider some other factors that will drive growth of Bangladesh apparel export.

Such as, industry will grow in the southwestern region of Bangladesh due to Padma Bridge.

Current mega infrastructure projects like Deep sea port which is due to be completed by 2026 will reduce transit time.

Bangladesh is the global champion in terms of the number of LEED certified factories. It accommodates half of the world's top 100 LEED certified green industrial units.

However, key watch out will be "duty-free export" benefits once it becomes a developing nation in 2026. European Union has extended the duty-free export benefit to 2029. Australia has also assured to continue duty free after graduation. Government need to ensure country will continue to have preferential trade agreement to remain competitive.

Sources: The Daily Star, tbsnews, the financial express

#bangladesh #apparel #clothing #sourcing #manufacturing #export #garments