Global textile and yarn makers see Bangladesh as a potential market. Though fabrics and yarn are being locally made, Bangladesh still needs to import a good quantity to meet the growing demand. In Bangladesh, local spinners meet over 90 per cent of the demand for raw materials of the knitwear sector and over 40 per cent demand of the woven sector.
The demand for specialised textiles like linen is very high in Bangladesh, which is quite capable of supplying fabrics in bulk to garment makers. Chinese companies see Bangladesh as their future market as China has been losing market share in the global apparel business. Some of them plan to open offices in Bangladesh since the fabrics and yarn market in Bangladesh is growing due to higher demand from customers. Bangladesh is a good market for them as demand for fabrics is rising from garment makers.
There is a huge demand for linen products in Bangladesh and millions of yards of fabric need to be produced in a year. Bangladesh’s apparel exports to the US, its single largest destination, declined 1.96 per cent year-on-year in 2016 due to the volatile US economy and the recent presidential election. Exports to the UK and some other European markets also fell last year.