Economic Reporter :
Despite all odds, Bangladesh remains as the second largest exporter of clothing products after China as its market share rose to 5.9 percent in 2015 .
According to the World Trade Statistical Review 2016 released last month by the World Trade Organisation (WTO), Bangladesh global market share in clothing rose to 5.9 percent in 2015, which was 5.1 percent in the previous year.
China’s market share stood at 39.3% topping the list, which was 38.6 percent in 2014. The global market size of the RMG products is around $450 billion
However, there are threats for Bangladesh as its competitors like Vietnam and India are getting more share and posting better growth in export earnings.
Vietnam is the third largest market share holder, of which the market share stood at 4.8 percent in 2015 from 4.0% in the previous year.
India and Turkey are also seen to jump to 4.1 percent and 3.4 percent from 3.7 percent and 3.5 percent respectively.
Trade analysts and RMG manufacturers termed it positive indication for the future of apparel industry.
They attributed safety improvement after the Rana Plaza incident, government incentives for export to non-traditional markets and also relaxation of rules of origin by the European Union to the rise of the market share.
“It is a result of combined efforts of owners and workers as well as the government policy support for exploring new markets. Improvement of workers safety has acted as catalyst in placing more orders with boosted confidence,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Mahmud Hasan Khan Babu told The New Nation.
Manufacturers are ready to take advantage from the China shifting to grab more market share, but the proposed hike in gas price will leave the sector in a great challenge to achieve the $50 billion export target by 2021, he said.
He argued if gas price is hiked, it will hurt backward linkage and also expansion of existing business.
Bangladesh needs over 13 The New Nation growth for achieving the $50 billion export target. In the last fiscal year, Bangladesh earned $28 billion with over 10 The New Nation growth.
Despite all odds, Bangladesh remains as the second largest exporter of clothing products after China as its market share rose to 5.9 percent in 2015 .
According to the World Trade Statistical Review 2016 released last month by the World Trade Organisation (WTO), Bangladesh global market share in clothing rose to 5.9 percent in 2015, which was 5.1 percent in the previous year.
China’s market share stood at 39.3% topping the list, which was 38.6 percent in 2014. The global market size of the RMG products is around $450 billion
However, there are threats for Bangladesh as its competitors like Vietnam and India are getting more share and posting better growth in export earnings.
Vietnam is the third largest market share holder, of which the market share stood at 4.8 percent in 2015 from 4.0% in the previous year.
India and Turkey are also seen to jump to 4.1 percent and 3.4 percent from 3.7 percent and 3.5 percent respectively.
Trade analysts and RMG manufacturers termed it positive indication for the future of apparel industry.
They attributed safety improvement after the Rana Plaza incident, government incentives for export to non-traditional markets and also relaxation of rules of origin by the European Union to the rise of the market share.
“It is a result of combined efforts of owners and workers as well as the government policy support for exploring new markets. Improvement of workers safety has acted as catalyst in placing more orders with boosted confidence,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Mahmud Hasan Khan Babu told The New Nation.
Manufacturers are ready to take advantage from the China shifting to grab more market share, but the proposed hike in gas price will leave the sector in a great challenge to achieve the $50 billion export target by 2021, he said.
He argued if gas price is hiked, it will hurt backward linkage and also expansion of existing business.
Bangladesh needs over 13 The New Nation growth for achieving the $50 billion export target. In the last fiscal year, Bangladesh earned $28 billion with over 10 The New Nation growth.
