Since 2020, Bangladesh, despite its tremendous effort at trying to maintain a steady supply of apparel exports to client markets, is experiencing numerous setbacks and headwinds that are stressing out manufacturers and exporters alike. However, the country has continued retaining its position as the world’s second largest supplier of apparel, despite the devaluation of national currency that made raw materials and machinery imports expensive. And also the country has been facing energy crisis for sometime. Despite headwinds, it did get applauded by the World Trade Organisation for having earned $45 billion through apparel exports and more than tripled its market share in the global textile and apparel market – from 2.5 per cent in 2005 to 7.9 per cent 17 years later, despite the odds it battled on the way. 

Good tidings for Bangladeshi exporters

A 15 per cent year-on-year growth compared to 2022 was reported at the beginning of the fiscal year in April 2023. Spearheading this growth was the US that has made a clear indication of dropping Chinese imports as much as possible and that Bangladesh was their preferred replacement. Bangladeshi exports give themselves a neat little pat on the back as they were absolutely right in investing in moving forward with not only portfolio diversification but also value-added items, which are performing well in Western markets. As Mohammed Khusro, Nipa Group stated in a recent interview with a Bangladesh-based textile trade journal these decisions saved the day as it helped the entire sector tide over decline in orders and being squeezed price-wise as much as 20 per cent. 

The Sino-US standoff has made Bangladesh the biggest beneficiary – according to Mohammad Hatem, a knit garment exporter and executive president of Bangladesh Knitwear Manufacturers and Exporters Association, no other apparel exporting country is able to bridge the current gap of 3 per cent that the US has shed off China. However, Bangladesh is also aware that it isn’t the only flavor of the season amongst American importers who are also interested in sourcing from Mexico, Egypt, Cambodia and Indonesia. Into this mix are two other confident countries, India and Vietnam where 52 per cent of American buyers who like to increase their procurement quantities. 

Bangladesh has remained dependable 

When countries were shutting production lines due to pandemic-induced lockdown, Bangladesh took a brave decision and continued keeping its production line going, earning gratitude from worried importers who were then upping their e-commerce business. This was perhaps one of the best credibility-building steps undertaken by Bangladesh. 

Additionally, the country has shown its capability to move away from basic to value-added garments as well as diversify its portfolio of products including premium clothing that was earlier not an ask from buyers and trying its best to respond to the sustainable standards being set up in the US and the EU. 

Vice -President of BGMEA, Shahidullah Azim is optimistic Bangladesh’s hard work to prove its expertise in the global apparel market will yield dividends. When Western importers are talking about China Plus One to slowly reduce Chinese dependency, the Plus One being considered is actually Bangladesh. 

Year 2023 may not live up to expectations

The good news of the buoyant orders and projected growth in orders may all be very well but the President of BGMEA is not quite convinced about how well 2023 will end as he expressed his doubts in a private circular to members of the association. Figures collated show that garment import by the US and the EU from around the world has declined by 22.92 per cent and 8.84 per cent respectively during the January-May period of 2023.