A recent study conducted by global accounting giant PricewaterhouseCoopers (PwC urges Bangladesh to shift its focus towards manufacturing man-made fiber (MMF) apparel in order to retain its position in the global clothing market.
Commissioned by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the study is titled. ‘From Shirts to Shores: A Blueprint for Bangladesh RMG Industry.’ Conducted in collaboration with the International Finance Corporation, the study charts a path for the country's post-COVID-19 recovery and its ambition to achieve $100 billion in apparel exports by 2030.
According to the findings, in 2022, half of the global ready-made garments (RMG) were made from man-made fibers, a figure expected to exceed 60 per cent by 2030. However, Bangladesh's RMG exports currently consist of less than 30 per cent man-made fibers, lagging behind its competitors.
Key competitors such as China, Vietnam, Turkey, and Italy already have a significant portion of their apparel exports comprised of man-made fiber items, ranging from 44 per cent to 62 per cent. In contrast, only 27 per cent of Bangladesh's total RMG exports are man-made fiber products.
The study underscores the urgency for Bangladesh to accelerate its production of garments from man-made fibers to meet the evolving global demand and maintain its competitiveness in the export market.
Highlighting the industry’s progress at a press conference held at the BGMEA office, Faruque Hassan, President, noted, since April 2021, 393 new factories have registered in Bangladesh. He urged people to invest in the importance of investing in the backward linkage industry, especially in light of Bangladesh's impending graduation from the Least Developed Country (LDC) status in 2029.
The meeting also discussed the industry’s Efforts to mitigate carbon emissions and promote renewable energy in the sector with plans for collaboration with international partners such as H&M and BestSeller on a 500 MW wind energy project in Bangladesh.
Additionally, the BGMEA is actively exploring investment opportunities and business models in the recycling industry to further enhance exports, with proposals submitted to the government aimed at boosting exports by $5 billion over the next three years.
