Nation’s apparel industry is rebounding

Salman F Rahman, Bangladesh’s Prime Minister’s advisor for private industry and investments, stated that the nation’s apparel industry is rebounding quickly from the Covid pandemic and the Russia-Ukraine conflict. Under Prime Minister Sheikh Hasina’s direction, the Government also plans to broaden economic opportunities in Bangladesh due to the increased stability and ongoing progress that have been established since its return to power, he stated.

Salman made this statement at a meeting he had at his office with Andrea Albright, the executive vice president of Walmart. Paul Dyke, vice president of Walmart’s business diplomacy and global affairs, was also among the high-ranking people in attendance. Salman urged Walmart to collaborate with Bangladesh to produce apparel composed of synthetic fibres alongside natural fibres. In response, Walmart’s delegation expressed their interest in working together in this regard.

Salman added that a large number of Bangladeshi textile companies had passed the strictest testing requirements in the globe. As a result, the nation’s apparel industry is rebounding quickly. According to Andrea Albright, Bangladeshi apparel is well-known worldwide. Walmart has been a national importer of apparel for a considerable amount of time. She stated that the buying organisations should have a proper part in adhering to the compliance in addition to the production.

Bangladesh’s textile and garment industry is a major contributor to the country’s economy, and it is a vital player in the global textile and apparel market. In the fiscal year 2021-2022, Bangladesh exported garments worth US $42.613 billion, making it the second-largest apparel exporter in the world (Export Promotion Bureau data). In addition, the garment industry is also a significant source of employment and income for Bangladesh, with more than 4 million people (about twice the population of New Mexico) working in the sector. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that in the first eight months of 2022, BD ready-made garment (RMG) exports totaled $29.825 billion, up by 38.39% compared to the same period in the previous year.

The United States is the largest export destination for Bangladeshi garments, accounting for around 21.50% of total exports. The European Union (namely Spain, Germany, Italy, France, Belgium and Netherlands) is the second-largest export destination for BD apparel, followed by UK and Canada.

Bangladesh’s textile and garment industry is forecasted to continue growing, and it is expected to account for more than 10% of the global market by 2025, according to BGMEA. The industry is also set to benefit from the ongoing shift in global sourcing patterns as more and more countries look to diversify their supply chains.

As per Sri Lankan financial services firm CAL Bangladesh, Bangladesh’s apparel sector will see a short-term dip in 2023 but a strong rebound is expected in 2024 which will help the sector’s exports reach US $56 billion by 2026.