Work orders from international buyers are picking up with the return of political stability in Bangladesh after the January 5 national elections. Garment makers aim to achieve their export growth target at the end of the year if there are no further political upheavals.
Bangladesh, the second largest garment exporter after China, shipped knitwear items worth $7 billion and $7.18 billion of woven items, a year-on-year growth of 18.13 per cent and 17.32 per cent in July to January. The country shipped more than $2.24 billion of clothing overseas in January, 7.09 per cent more than a year ago period. This advance marks the 18th year-on-year increase in the last 19 months, buoyed by gains in exports of both woven and knitwear.
With Bangladesh tentatively on track to ship an unprecedented amount of clothing in 2014, and it will import record amounts of both textiles and cotton in response. Given that the country grows little cotton of its own, the local textile and apparel sector is almost entirely dependent on imports of the fiber. Cotton consumption in Bangladesh may rise 8.75 per cent in fiscal 2014-15.
However Bangladesh will face challenges in the European market as the European Union has awarded trade preferences to Pakistan as well for the same products.
