The sourcing caravan is moving on to the next hotspot. Bangladesh's garment industry has grown at an annual average rate of 16.9 per cent since the multi-fiber agreement was abolished in 2005. And there is further room for growth. Japan is now actively seeking to diversify its garment import base away from China. Chinese investors themselves are seeking to source from Bangladesh, given rising wages in China.

Bangladesh is likely to be the best destination that has the ability to grab the lion’s share of the global readymade garment market presently held by China. If Bangladesh can address the key constraints hindering exports, it could take some of the market share being gradually vacated by China.

Capturing even 20 per cent of China’s garment export markets would more than double Bangladesh’s total exports. China is currently either vacating some price competitive product segments or investing abroad in more competitive locations, offering great opportunities for Bangladesh.

Bangladesh can potentially become an important player in manufacturing based on a strong comparative advantage in labor-intensive industries. This comparative advantage, matched with a large population, has translated into very strong price competitiveness in the garment sector and possibly could, with the right policies, translate into competitive positions in other manufacturing industries.