The readymade garment and textile sector of Bangladesh will see a year of possibilities in 2023.

Buyers from western countries, especially from the US, have started to shift their orders from China as part of reducing dependency on China for geopolitical reasons.This trend is expected to continue in the upcoming year. In this case, Bangladesh can be a good alternative for western buyers.

West looking at Bangladesh as a strong alternate

Western countries may also move out orders from Vietnam and Bangladesh will have a chance to grab them too. Especially in the last few months Bangladesh has received orders from the United States at a higher rate compared to two major suppliers-- China and Vietnam.

Bangladesh's garments exports to the US have seen 54 per cent growth at the beginning of the current year, 2023. Besides, China's moving towards high-tech industry and the latest coronavirus surge in that country can play big roles in diverting readymade garment orders to Bangladesh.

In 2004, there was much speculation about export growth while the quota system on garments exports was lifted. But those who invested have gained a good profit.Many world-famous commodity traders are planning to open warehouses in Bangladesh. If one company opens a warehouse in the country, others will follow. As a result, Bangladesh is going to have good prospects in the coming years. Buyers have confidence in Bangladesh’s suppliers and new buyers are also coming. Outerwear, sportswear, lingerie and cotton-based high-end products have good export potential and entrepreneurs have to be proactive in grasping these possibilities.

The way ahead

Uncertainties such as the war and the recession remain.This year should be the year of investment in the backward and forward linkage industry of the apparel sector. The industry has to prepare for the future and should look for future possibilities. Long-term planning is necessary. Policy support will also be required. Especially, the industry needs energy support, an investment-friendly environment, policy reform, upgraded logistics and corporate governance etc.The policy for economic zones needs reform. It is also important to modernise customs and port activities in the country. Trained manpower with technical knowledge is needed. Coordination is necessary between industry, policymakers and academia.