Bangladesh may well become the leading apparel supplier to the European Union in the next few years on the strength of continuous investment in updated knitting machines and textile manufacturing technology as Chinese exports continue to plunge.
Bangladesh media hopes the Bangladesh textile exports will fill the void being created by China which currently is the largest apparel exporter to the EU. According to the EU statistical office, Bangladesh currently commands 29.4 percent of total EU apparel imports.
During Jan-Nov 2023 EU’s imports from China reached US$25.49 billion a growth of 22.43 percent year-on-year growth, Bangladesh reduced the gap with a growth grew by 41.76 percent in the same period to $19.40 billion. According to media reports, China has been losing its global apparel market in the last few years due to multiple factors. These include a shortage of skilled workforce, and an increase in production costs. The withdrawal of foreign investments from China coupled with its Covid-19 policy. Bangladesh is not the only country to replace China created void, other countries like Vietnam, Thailand, Cambodia, India, and Pakistan are in the race.
China’s market share declined to 32.2 in the global apparel trade stood at 39.3 percent in 2015 dipped to 32.2 percent. Bangladesh on the other hand succeeded in increasing its market share in the EU to 24 percent in 2022 from 18.5 percent in 2017. The credit for the current performance of Bangladesh goes to its apparel sector entrepreneurs that invested in the latest production technology. This has enabled them to shift from more basic items to higher-end value-added apparel.
Bangladesh’s textile industry is set to invest $2.5 billion in the sector by the end of 2023. The resultant increase in capacities would boost exports besides creating 100000 new jobs.
