The year 2024 was a critical one for the country’s garment industry. As the market starts to recover, there is a new ray of hope in the new year.
Energy and dollar crises, supply chain disruptions, workers’ demands for higher wages, political uncertainty, and lax law and order—all of these created an internal crisis for garment manufacturers in the past year.
However, Bangladesh’s garment exports to major markets like the European Union and the United States have rebounded. The country’s garment exports from July to November increased by 16.25 percent compared to the same period last year to $16.11 billion. According to industry insiders, garment exports will increase in the new year 2025. But we need to retain our current growth.
Donald Trump will be sworn in as President of the United States for the second time on January 20. As previously announced, the new tariffs he has announced on Chinese goods will hopefully create opportunities for Bangladesh.
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Notably, Donald Trump has proposed a 60% tariff on goods from China, a 25% to 100% tariff on goods from Mexico, and a 10% to 20% tariff on all other goods.
Entrepreneurs believe that the new US president is business-friendly. He will be able to end the Russia-Ukraine war. As a result, Europe and the US will be able to come out of the inflation that they are suffering from. And as a result, Bangladesh’s two main markets will expand again. The country’s export income will increase.
To capitalize on this opportunity, Bangladesh must ensure reliable gas and electricity supplies. At the same time, it needs to address the challenges in the banking sector, and improve law and order to curb labor unrest and enhance factory safety. By achieving these goals, the country can expect a business-friendly environment and robust export growth by mid-2025.
We also need to adopt some policies, such as easing the bond license facility, introducing non-discriminatory import taxes, and reforming the tax policy of Customs and NBR.
At the same time, we need to find the scope of innovation, such as shifting from cotton items to non-cotton items; focusing on military, athleisure or technical textiles; and moving towards the chemical and machinery industries.
