Bangladesh has an additional export potential of $20 billion in the EU and UK and it would rise further as China was losing its share in the global market.
“It is possible to increase its export by $20 billion in the EU and UK with the existing capacity of Bangladesh through improving efficiency,” said Research and Policy Integration for Development (RAPID) Chairman Dr Mohammad Abdur Razzaque.
According to a study conducted by RAPID, Bangladesh’s export potential worth $20 billion remained untapped in the European Union and United Kingdom markets due to a lack of productivity, diversification, and adoption of technology.
The study showed that the EU and UK account for 45% of the global apparel market with more than $200 billion in yearly imports.
Bangladesh’s total exports to the markets in the fiscal year 2021-22 were $28 billion with a 32% growth.
Out of 28 billion, earnings from readymade garment products were nearly $26 billion.
Dr Mohammad Abdur Razzaque, chairman of RAPID, in his research paper, said that Bangladesh realized less than 60% export potential while apparel export potential worth $18 billion remained unutilized.
He stressed increasing competitiveness, decreasing the cost of doing business, and improving logistics including the port facility to utilize the export potentials in the EU and UK markets.
Amid the rising tension between the west and China Bangladesh had captured most of the declining share of China in the EU market, the study said.
It also said that Bangladesh could further take advantage of the declining Chinese share as China is moving away from low-value-added apparel to more sophisticated items.
In 2030, the size of the global apparel market would be $1,100 billion and if Bangladesh could increase its share to 10% in the global market, the export would be $110 billion, the BGMEA president said recently.
The RAPID study showed that the apparel export target of $100 billion by 2030 set by BGMEA is achievable but some of the challenges including inefficiency in port, complex customs procedures, and lack of technology upgrades should be addressed.
RAPID estimated that out of the targeted $100 billion by 2030, more or less $90 billion will come from two major markets EU and the US and it will require 11.45% export growth annually.
It showed that the EU market size of apparel would be more than $260 billion in 2030 and Bangladesh’s export would have to increase to $65 billion from the existing $28 billion with an annual 11% growth rate.
In the US market, Bangladesh’s apparel exports would have to increase to $25 billion with a 15% annual growth to meet the export target of 100 billion by 2010, RAPID estimated.