Bangladesh has a garment industry with an estimated value of $28.14 billion. This industry accounts for 12.36% of its GDP, 80% of its exports, and the creation of 4 million jobs. In recent years, Bangladesh has undertaken the process of fixing its infrastructure from the ground up. Now this growing sector ready for exposure to new markets.
Infrastructure Changes Pave Way for Growth
An International Monetary Fund (IMF) report details how the apparel industry has diversified throughout this process leading to growth. Daisaku Kihara the IMF Mission Chief for Bangladesh stated told Sourcing Journal Online,
“Throughout this process, the country has diversified away from an agrarian to a more manufacturing-based economy with rapid growth in the ready-made garment (RMG) industry,” Kihara said in the IMF report. “With limited diversification, exports remain concentrated in the RMG sector. New products and growing sectors, such as footwear, leather, and pharmaceuticals are showing potential for diversification, but the share of the low-skilled RMG sector in total exports remains high at around 80 percent.”
These improvements along with an increase in consumer spending and investments like the one made by the World Bank have boosted the sector. It turns out, Apparel Textile Sourcing would also play an instrumental role. The Export Promotion Bureau (EPB) told Textile Today that Bangladesh attended the Apparel Textile Sourcing Canada show this past August in Toronto to forge relationships with the Canadian and International market. Their goal of connecting buyers with their suppliers, as well as sharing their new innovative approach to fashion, was achieved.
Bangladesh Hopes to Increase Apparel Exports
At the show, Bangladesh showcased not only fashion and manufacturing ability, but also their compliance as per Accord and Alliance guidelines. New infrastructure changes were front and center, as were policy updates, and other benefits of conducting business in the nation. Low production cost has always reigned supreme, but new tax benefits, a better supply chain, and improved factory conditions are new additional benefits.
According to Textile Today, Bangladesh hopes to increase apparel exports and boost trade with Canada to the tune of $ 3 billion in the next three years. Bangladesh currently exports an estimated $ 1.1 billion worth of goods to Canada, most of which are ready-made garments. They hope that their attendance at Apparel Textile Sourcing Miami (ATSM) this May 30th-23rd, 2019 will further increase exports with the Americas and other international markets.