In a remarkable journey of growth and resilience, Bangladesh has emerged as a global powerhouse in the clothing export industry. According to a recent report from the World Trade Organization (WTO), Bangladesh’s share of clothing exports in the global market has soared from a modest 2.5% in 2005 to an impressive 7.9% in 2022.
Bangladesh’s Remarkable Growth
This exponential growth is nothing short of impressive, especially considering the challenges faced by the Bangladesh clothing industry. Rising production costs due to raw material price hikes and energy expenses haven’t deterred Bangladesh’s ascent in the global market.
A Strong Position in Global Clothing Exports
Bangladesh has firmly secured its position as the world’s second-largest clothing exporting country, trailing only behind China. In 2022, Bangladesh exported clothing worth a staggering $45 billion as per Bangladesh export data, accounting for a substantial 7.9% share of the global market. These figures come from the “World Trade Statistical Review 2023” report, released on July 31st.
Factors Behind Bangladesh’s Success
What’s driving this growth? Bangladesh has strategically focused on value-added products and diversified its orders, which has attracted the attention of international buyers. The government’s support, including an uninterrupted energy supply and favorable tax and duties, has played a pivotal role in sustaining this upward trajectory.
Insights from Industry Leaders
Leaders in Bangladesh’s clothing industry shed light on this remarkable achievement. Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributes this jump in market share to the previous year’s strong exports, even amid global economic challenges. He also highlights key factors, including producing high-value products, diversifying within the sector, and expanding market share in new markets like Japan, India, and Korea.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), notes the decline in China’s apparel global market share, driven by geopolitical shifts, which presents an opportunity for other exporters like Bangladesh.
Opportunities and Challenges
While there’s room for further growth, some issues related to the National Board of Revenue (NBR) and customs have impeded progress. Hatem emphasizes that with an uninterrupted supply of gas and electricity, the industry could double its market share within a year.
Trust and Timely Delivery
Bangladeshi apparel exporters have earned trust for on-time delivery and high-quality, value-added products, even amidst challenges. This reliability has been a key factor in retaining and attracting international buyers.
Recent Export Figures
According to the Export Promotion Bureau (EPB), Bangladesh’s ready-made garment exports reached $23.99 billion in the first half of 2023, marking a 5.65% increase compared to the same period last year.
Global Trends in Clothing Exports
China’s share in global clothing exports declined to 31.7% in the last year from 32.8% in 2021, though it maintained its position as the world’s largest clothing exporter. Meanwhile, Vietnam, the third-largest apparel-exporting country, increased its market share to 6.1% in 2022, up from 5.8% in 2021.
Bangladesh’s Growing Rank in Merchandise Trading
The WTO report highlights Bangladesh’s improved ranking among the 50 largest merchandise traders in 2022, moving from 53rd place in 2019 to 49th place. China, meanwhile, remains the largest merchandise trader globally.
Unlocking Business Opportunities with Import Globals
In this dynamic landscape, data is crucial. Import Globals, a trusted trade data provider, offers invaluable insights into Bangladesh’s import and export activities. Their Bangladesh import data and export data can empower individuals and businesses to seize emerging opportunities in this thriving market.
Conclusion
Bangladesh’s remarkable journey in clothing exports is a testament to resilience, strategic focus, and adaptability. With a solid foundation and the right support, the country’s clothing industry is poised for further growth, solidifying its position as a global leader in the years to come. Keep an eye on this evolving market, and consider leveraging the insights provided by Import Globals to unlock your business potential in Bangladesh.
