Bangladesh needs to focus on manufacturing man-made fibre apparel to maintain its global market position amid growing demand in the global market, as the country still lags behind other competitors in exporting ready-made garments (RMG), according to a new study conducted by the global accounting giant PricewaterhouseCoopers, or PwC.
The study also found that in 2022, half of the global RMG items were made from man-made fibres. The figure is projected to rise above 60% by 2030. However, Bangladesh’s RMG exports currently contain less than 30% man-made fibres.
The PwC study also mentioned that the major competitors of Bangladesh already have 44% to 62% man-made fibre products in their apparel export basket.
The study suggests that Bangladesh should expedite the making of garments from man-made fibre to maintain the global export demand.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) commissioned PwC to conduct the comprehensive study, titled “From Shirts to Shores: A Blue Print for Bangladesh RMG Industry”, as part of the roadmap for the post-Covid-19 period and the target of $100 billion apparel exports by 2030.
PwC shared the findings of the study, conducted in collaboration with the International Finance Corporation, at a press conference held at the BGMEA office in the capital on Thursday (4 April).
According to the study, global exports of ready-made garments in 2013 were worth about $794 billion, where the share of man-made fibre items was 46%.
In 2022, global apparel exports rose to $953 billion where the share of man-made fibre was 50%. It has been projected that in 2030, the total apparel exports will hit $1,121 billion where 60% will be of man-made fibre items.
Among the competitive countries, as of 2022 China, Vietnam, Turkey and Italy are ahead of Bangladesh in the export of man-made fibre RMG items where China’s share of its total RMG export is 62% followed by Vietnam’s 56%, Turkey’s 48% and Italy’s 44%. On the other hand, 27% of Bangladesh’s total RMG exports are man-made fibre products.
On the occasion, BGMEA President Faruque Hassan spoke for the last time at a formal BGMEA event as the president of the apex trade body. A new board will take responsibility on 6 April (Saturday).
He said it is true that several factories have been shut down due to various crises in the past years. However, since April 13, 2021, 393 new factories have been registered as new members of the BGMEA, he added.
“We have also advanced considerably in terms of manufacturing high-value products and value addition. Currently, investment in the backward linkage industry is very important, because after LDC graduation in 2029, there is no alternative to local fabric to get GSP plus benefits in Europe,” Faruque said.
He also said that he met the WTO DG in Geneva and top figures in Brussels and insisted on continuing the ongoing facility till 2032 after LDC graduation.
The BGMEA president also said that work is going on to reduce carbon emissions by increasing the use of renewable energy in order to make the apparel industry carbon neutral.
“H&M and BestSeller are going to invest in setting up a 500 MW wind energy project in Bangladesh and we are continuing efforts to increase such collaboration,” he added.
Faruque Hassan also said that the BGMEA is working to develop investment opportunities and business models in the recycling industry. It has some concrete proposals in this regard for the next budget and has conveyed it to the government.
“Hopefully, if these are properly reflected, we can add $5 billion to our exports in the next three years,” he added, emphasising the significance of research-driven strategies in sustaining competitiveness amidst evolving global dynamics.
PwC Managing Director Shalini Shrivastava, Director Arindam Saha and Associate Director Shivam Kaushal, and BGMEA Vice President Abdullah Hil Rakib and directors Shovon Islam and Nusrat Bari Asha were present, among others.
