Sources at the leading apparel and textile mills associations revealed that an investment of $4 billion is in the pipeline across the textile sector which would propel its capacities to higher levels in 2024.
In addition, a new investment plan of about $1 billion is on cards. Out of this one company committed to investing about $0.7 billion. The dividends of these investments would be visible in 2023. Some factories took the clue to enhance capacities as they started receiving higher orders that were earlier meant for China. A leading apparel exporter with 25,000 workers is upgrading its capacity which would require a workforce of 40,000. The entire expansion is in non-cotton garments.
As buyers reduce their orders in China more brands are looking towards Bangladesh as an alternative. Recently a high-level delegation of fashion brand H&M visited Bangladesh and explored the possibility of expanding its sourcing from the country. This was not a routine visit as top-level executives comprised the delegation. In the same way, another leading brand Primark has scheduled a visit to Bangladesh where they would meet two leading garment exporting companies. The officials of Bangladesh apparel associations are optimistic about these visits and they have a reason for this buoyancy.
It is now confirmed that the US and the EU are turning away from China. Buyers see Bangladesh as an alternative to China because its companies have prepared for subsequent divulge of orders. China’s share in the EU market declined by 14 percent in the last 10 years, while the share of Bangladesh in the EU apparel market doubled during the same period.
