Bangladesh has the potential to grab a 12% share in the global man-made fibre-based apparel market that will reach $375 billion by 2030, mainly cashing in on China’s declining share, said Dr MA Razzaque, chairman of the Research and Policy Integration for Development (RAPID).
Apart from offering necessary policy incentives, for this, the government will also have to invest $25-$30 billion more in developing a strong backward linkage, he also said.
He revealed it in a workshop on “Man-made fibre for moving up the value chain of RMG in the context of LDC Graduation” organized jointly by the Support to Sustainable Graduation Project of the Economic Relations Division (ERD) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Tuesday in the capital.
Dr MA Razzaque also thinks Bangladesh’s cotton exports will rise to 20% of the $250 billion international market, considering the current growth trend over the last decade.
Moreover, in this way, the country’s total apparel export will hit the $95 billion mark by 2030 with a massive jump from around $42 billion recorded in FY22.
In 2030, the global market is projected to reach $625 billion.
Stating that man-made fibre clothing may drive the country’s future export growth, Dr MA Razzaque recommended bringing in foreign investments in man-made textiles and apparel to turn the country into a regional supply hub of such non-cotton products.
Increased use of man-made fibre will enable Bangladesh’s readymade garment sector to diversify its products and move up the value chain as the sector prepares for the post-LDC graduation scenario, he pointed out.
The global apparel market was $440 billion in 2021, of which man-made fibre apparel’s value amounted to $222 billion and cotton apparel value was $190 billion, which is 42% of the global apparel market.
On the other hand, cotton accounted for 72% of Bangladesh’s garment exports, man-made fibre apparel 24%, and the rest were silk, wool, and others.
Bangladesh’s ready-made apparel has made a strong footprint in the global market and emerged as the second largest exporter in the world after China.