Prospects for the Textile and Garment Industry in Bangladesh

Prospects for the Textile and Garment Industry in Bangladesh

SUMMARY
IMPORTANCE OF THE TEXTILE AND GARMENT INDUSTRY TO THE ECONOMY OF
BANGLADESH
DEVELOPMENT OF THE TEXTILE AND GARMENT INDUSTRY IN BANGLADESH
BANGLADESH: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geography
Political structure
Economic performance
BANGLADESH: INFRASTRUCTURE
Transport
Telecommunications
Industrial zones
BANGLADESH: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND GARMENT INDUSTRY IN
BANGLADESH
Textiles
Garments
TEXTILE AND GARMENT PRODUCTION IN BANGLADESH
PRODUCTION TECHNOLOGY AND MACHINERY IN BANGLADESH'S TEXTILE AND
GARMENT INDUSTRY
MARKETS FOR BANGLADESH'S TEXTILE AND GARMENT INDUSTRY
BANGLADESH'S TEXTILE AND GARMENT EXPORTS AND IMPORTS
Exports
Exports by value
Exports by volume
Exports by product category
Unit prices
Outlook
Imports
FOREIGN INVESTMENT IN BANGLADESH'S TEXTILE AND GARMENT INDUSTRY
TEXTILES AND GARMENTS IN BANGLADESH: GOVERNMENT POLICIES AND
INVESTMENT INCENTIVES TEXTILES AND GARMENTS IN BANGLADESH: STRENGTHS, WEAKNESSES,
OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
List of tables
Table 1: Bangladesh: political and economic profile, 2008
Table 2: Bangladesh: economic indicators, 2004/05-2006/07
Table 3: Bangladesh: employment in the textile and garment sector, 2006
Table 4: Bangladesh: number of mills and installed capacity in the short staple spindle sector,
1983-2006
Table 5: Bangladesh: yarn and fabric production, 1995/96-2005/06
Table 6: Bangladesh: garment exports to major markets by type, 2004/05-2006/07
Table 7: Bangladesh: garment exports and total exports, 1983/84-2006/07
Table 8: Bangladesh: exports of textiles and textile products, 2001/02-1st half 2007/08
Table 9: Bangladesh: garment exports by value and by volume, 1992/93-2006/07
Table 10: Bangladesh: woven garment exports, 2001/02-2006/07
Table 11: Bangladesh: knitted garment exports, 2001/02-2006/07
Table 12: Bangladesh: imports of fibres, textiles and textile articles, 1990/91-2006/07
Table 13: Bangladesh: investment in the textile sector, 2008/09

The textile and garment sector in Bangladesh fulfils a crucial role in the country’s economy. In the
2006/07 fiscal year (July 2006-June 2007), it accounted for as much as 76% of the country’s total
exports. And in 2006 it provided jobs for 4.5 mn people, accounted for 10.5% of the country’s GDP,
and contributed 40% of its manufacturing output.
Exports have been growing at an impressive rate in recent years. In 2006/07 alone, they increased
by 18.2% to reach US$9.6 bn, a record level for the fifth consecutive year.
Looking ahead, Bangladesh has an excellent opportunity to boost exports of garments to the USA and
EU countries where demand for low cost apparel is increasing. The introduction of quotas restricting
EU and US imports from China in 2005 and 2006 respectively has already provided it with a
breathing space in which to gain market share. So has the EU’s Generalised System of Preferences
(GSP) scheme, which provides garment manufacturers in Bangladesh with duty-free access to the EU
market—subject to certain conditions relating to the origin of the materials used in the manufacture
of the garment.
However, there are significant obstacles to overcome if the industry’s full potential is to be reached.
In the short term, the fermenting issue of employment conditions needs to be addressed. Also,
economic difficulties in the USA and Western Europe, and the prospect of a recession, have already
led to a slowdown in consumer spending. Unless there is a speedy recovery, exports of textiles and
clothing from major suppliers such as Bangladesh could suffer as Western buyers cut back on their
purchases. Over the longer term, considerable investment is required to improve, update and extend
the infrastructure in Bangladesh. Meanwhile, the textile sector needs to implement its own
modernisation programme in order to satisfy a greater proportion of the garment industry’s raw
material requirements.