Bangladesh is still in the second position in the world market by exporting cheap and cotton garments. But the country’s entrepreneurs are lagging behind the rapidly growing demand for synthetic or synthetic yarn. They say the government needs special policy support to deal with the risk of relatively large investments in such factories. Economists have suggested changing the incentive structure as well as attracting foreign investment.
The garment industry has been leading the country’s export earnings and employment for many years. However, product diversity in this sector has not increased according to the demand of the international market. Cotton T-shirts, shirts, trousers cover the lion’s share of exports. However, the demand for synthetic yarn garments like polyester is increasing in the world market as it is durable and fashionable.
According to GFX-International Market Research Institute, the demand for cotton yarn has declined in the last ten years. The size of the world market for synthetic yarn garments is about 15 trillion dollars. Where the occupation of Bangladesh is only 2 percent. However, overall, Bangladesh is second in the world with 7.8 percent share in clothing. Entrepreneurs say concerted action is needed to boost high-value garment exports.
Shahidullah Azim, former vice-president of BGMEA, said, “We have become accustomed to making cheap clothes.” If a cotton T-shirt is made from it then more money is available.
About 75 per cent of the yarn and 35 per cent of the woven garments and fabrics are supplied by local factories, but only 15 to 20 per cent of the yarns and fabrics produced are synthetic or synthetic. Therefore, the economists are highlighting the challenge of increasing the local raw material and technical capacity to increase the export of such garments.
Dr. Khandaker Golam Moazzem said, “Since we are moving towards the production of specialized products. Investors will be attracted if a cash incentive rate of 2 percent can be given for this.
As a developing country, economists are emphasizing on the production of garments that can add high value to counter the increased competition that Bangladesh’s garment sector will face in the world market if it loses tariff benefits.