Bangladesh’s export earnings from sweaters rose by 18.57 per cent in the first seven months of the current fiscal year. This was possible due to improvements in production quality and the introduction of upgraded technology.
Shipments from November to January picked up, contributing to an additional rise in export earnings. Bangladesh offers quality products at comparatively reasonable prices. Manufacturers have also introduced new technology to improve the quality of goods, so production capacity and the standard of goods have also increased. Since Bangladesh has the capacity to execute bulk work orders, buyers are placing more orders.
Relocation of businesses from China as a fallout of the US-China trade war has also played a major role in increasing export earnings. As a spillover effect of the trade war, companies have shifted their sourcing from China to Bangladesh. China is moving towards higher-end goods and tech-based production and leaving low-cost products—which is another positive advantage for Bangladesh in attracting more buyers.
But despite the growth, the apparel sector has some serious challenges ahead as manufacturers have to implement the new wage structure, although buyers are unwilling to pay more. Additionally, Bangladesh is losing its competitive edge to the global market due to the appreciation of the currency against the dollar, while its competitors are devaluing their currencies.