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Site developed by:

Helal Ahmad

Site developed by:

Helal Ahmad


Bangladesh: The world’s second largest garment exporter:

Bangladesh enters 2013 with a firm footing as the world's second largest garment exporter, raising hopes for a new wave of business despite turbulent times in parts of the globe.


The World Trade Organization declared Bangladesh as the second largest RMG exporter after China in 2010-11 when the country's export grew 43.36 per cent year-on-year to $15.66 billion in spite of global recession in 2007-2008.


Bangladesh retained its position in the following fiscal 2011-12 by exporting garments worth $19.09 billion. And the outlook for the fiscal 2012-13 is set to exceed $20 billion. Bangladesh now claims 4.8 per cent of the global RMG trade of $412 billion.

According to McKinsey & Company, an international management consulting firm, Bangladesh's apparel exports will reach $36 billion by 2020.


Some key market players believe that the country's potentials are even greater.


Importance of clothing industry in Bangladesh:

The textile and clothing (T&C) industries provide the single source of economic growth in Bangladesh's rapidly developing economy. Exports of textiles and garments are the principal source of foreign exchange earnings. Agriculture for domestic consumption is Bangladesh’s largest employment sector. By 2002 exports of textiles, clothing, and ready-made garments (RMG) accounted for 77% of Bangladesh’s total merchandise exports. By 2013, about 4 million people, mostly women, worked in Bangladesh's $19 billion-a-year industry, export-oriented ready-made garment (RMG) industry. Bangladesh is second only to China, the world's second-largest apparel exporter of western brands. Sixty percent of the export contracts of western brands are with European buyers and about forty percent with American buyers. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by local investors.


Bangladesh's textile industry has been part of the trade versus aid debate. The encouragement of the garment industry of Bangladesh as an open trade regime is argued to be a much more effective form of assistance than foreign aid. Tools such as quotas through the WTO Agreement on Textiles and Clothing (ATC) and Everything but Arms (EBA) and the US 2009 Tariff Relief Assistance in the global clothing market have benefited entrepreneurs in Bangladesh's ready-made garments (RMG) industry. Bangladesh with a population of about 156 million, has the highest population density in the world. In 2012 the textile industry accounted for 45% of all industrial employment in the country yet only contributed 5% of the Bangladesh's total national income.


Benefits of buying from Bangladesh under GSP facilities:

GSP form A facilities: Under two stages derogation Bangladesh government is issuing GSP form A to the EEC customers. Therefore local factories can provide GSP facilities for our valued customers. 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 EU's Generalized 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.


Today Bangladesh offers a very flexible and feasible production base for its customers in EU, America and Australia. The EU market is quota free for apparels and goods are eligible for the GSP facilities. As an LDC member Bangladesh also obtain special Tariff benefit from Canada. Day by day, more and more back ward linked textiles industries are being set up with more variety of yarns for buyers to choose from. Lead times getting shorter as factories offer larger production capacities to alleviate shorter lead-times.


Duty-free options also available for Japan, Malaysia and Australia based on country of origin certificates. Which opens wider prospect to expand clothing market in Asia and Oceania.

Text Box: Bangladesh & Garments: Some important facts