Bangladesh textile sector sets new export record for South Asian country

Bangladesh amid growing demand for cheap clothing and the rest of the Asia disappointed in terms of export revenue in 2014, there was one surprising anomaly to the pattern – Bangladesh’s textile industry surged towards the end of 2015.

Bangladeshi export earnings levitated to $3.2bn last December, thereby setting a new record for the South Asian country. This phenomenal success can be attributed to Bangladesh’s growing apparel industry, which accounted for over 83 percent of December’s figures.

The country’s GDP is expected to grow to 6.7 percent this year, which will make Bangladesh one of the fastest growing economies in the world.

As global demand for cheap clothing is rising rapidly, Bangladesh’s position as the second biggest exporter in the world continues to hold strong, which is mainly due to its large population and low labour costs.

There is good reason for Dhaka to remain hopeful for the year ahead as well as exports account for 20 percent of Bangladesh’s GDP, while clothing in particular contributes around 80 percent of all exports. In fact, according to the World Bank, the country’s GDP is expected to grow to 6.7 percent this year, which will make Bangladesh one of the fastest growing economies in the world.

However, with the EU being a principle recipient of garments, accounting for 61 percent of exports, there is the continued slowdown of European economies to consider.

Moreover, Bangladesh’s current global ranking.could be threatened with growing competition from Vietnam, which will grow fervently once the Trans Pacific Partnership is ratified some time this year.

As such, Bangladeshi manufacturers in order to maintain their competitive advantage will be forced to enhance productivity levels.

Even with all these challenges ahead, in the coming years as global trade picks up demand for Bangladeshi garments is also expected to increase.