Bangladesh's garment industry an alternative to China's claws

June 04, 2024
Editor Bricklane, UK Correspondent of Daily Kalerkontha
  • Exports of Bangladesh-made garments to the US market are continuously decreasing.

I recently visited Bangladesh and decided to write about my experience. But due to various busyness, uninterrupted orderliness was not maintained, I don't know about other cities of Bangladesh, the situation I saw in Sylhet city due to staying in Sylhet for more than a month, it should not be different in other cities of the country. Charger fans, charger lights, rich cookers, hotpots, whatever we buy are made in China. And I accepted it as normal. Because Made in China is supplying these products all over the world. 

But I was surprised, when going to the cloth market, Sylhet city has seen a huge revolution in the last decade, at least as far as I can see. There is not an inch of space left empty, three types of business have spread widely, 

There is a restaurant, a sweet shop and a clothes showroom. All three are luxury goods. It is a boring discussion about the economy, when people have endless money in their hands, people tend towards luxury products or services. Economists can better explain that. 

As a common man, the clothes market was noticed to my eye. The number of shops or showrooms may increase, but whatever we go to buy, the traders say with great pride, "China product brother, close your eyes and take it, good quality." I would like to know, bro, there is no Bangladeshi product? They consider it as a joke! 

But the reality is that the sector that plays the highest role in the economy of Bangladesh is the garment sector. In the textile minister's statement, the garment industry is said to be the main driving force of Bangladesh's economy. About 84 percent of the country's export income comes from this industry. About 4 million workers are employed in this industry, of which 65 percent are women. The life and livelihood of nearly two crore people of this country are directly and indirectly related to this industry. The contribution of garment industry to the GDP of this country is about 11 percent. Last year Bangladesh's garment exports were more than 47 billion dollars. Around 160 countries around the world wear 'Made in Bangladesh' clothes. But the surprising thing is forcing the people of Bangladesh to wear Made in China! 

In the outgoing fiscal year 2022-23, a total of 5 thousand 556 million dollars worth of goods were exported from Bangladesh, which is 5 lakh 97 thousand 270 million taka in local currency (every dollar is considered to be 107 taka 50 paisa in exports). The top 12 export destinations and countries have exported products worth 4 thousand 204 million dollars. In the previous year, exports to these markets were worth 4,110 million dollars. Exports to these countries increased by 193 million dollars in one year.

According to the Export Promotion Bureau (EPB), the top 12 export destinations of Bangladeshi products in the outgoing financial year are the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, India, Japan, Poland, Canada and Australia. Among these countries, only the United States, Germany and Poland saw a decline in exports. Exports of goods to the remaining 9 markets increased from 7 to 40 percent.

An analysis of EPB data shows that 84.57 percent of the total exports in the just-ended fiscal year were made-up garments. However, 92-97 percent of the total exports to Germany, UK, Spain, Italy, Poland and Australia are ready-made garments. And 84 to 90 percent of the total exports to the United States, France, the Netherlands, Japan and Canada are ready-made garments. And 47 percent of India's total exports are ready-made garments.

According to the latest report titled 'World Trade Statistical Review 2021' of the World Trade Organization (WTO), Bangladesh ranks 39th in global merchandise exports and second among South Asian countries. The position of Bangladesh is after India in this region. Pakistan ranked third. 

While Bangladesh is busy increasing its exports abroad, but China is taking of the huge market of the country of 20 million people. Bangladesh, Bangladeshi  clothing industry is not thinking about the country's market why? 

US traders import about 40 percent of manufactured garments from China and Vietnam. And 9 percent from Bangladesh. India and Indonesia share 5.69 percent and 5.25 percent respectively in the export of manufactured garments in this market. There is no Bangladesh near there. 

China exported $345 million worth of ready-made garments to the US market from January to March. During the same period, Vietnam exported $3.4 billion worth of ready-made garments. Globally, the garment industry of Bangladesh is losing market day by day, the amount of exports is decreasing. However, new markets are also being found or are trying to be found. 

But bangladesh will not be able to reach  or tuch the edge of Vietnam or china. China and Vietnam have long been the top two exporters of ready-made garments to the US market. The fourth and fifth largest exporting countries in this market are India and Indonesia.

Exports of Bangladesh-made garments to the US market are continuously decreasing. Exports fell by 25 percent last year. It is also decreasing this year. At the end of last February, the export rate stood at 19 percent. Although Bangladesh could not get out of the negative trend, the other two competitors, China and Vietnam, have returned to a positive trend in garment exports in this market. 

According to the updated statistics of the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, US businessmen imported 1,218 billion US dollars worth of ready-made clothing from different countries in the first two months of this year, January-February. This import is 7.78 percent less than the same period last year. Therefore, not only the foreign market, the businessmen of this sector can also pay attention to the domestic market.

I bought a pure cotton half shirt from Arang for Rs 760 including VAT, which is less than 5 pounds compared to England. Same shirt, same design, same fabric, I bought it at Next Showroom in England at a discounted price of £25, which was normally £30 to £35. The price of a similar  of jeans in Bangladesh should not be more than 1,000 to 1500 taka, those Chinese jeans are being sold for 2,500 to 3,000 taka in  shops. If Arang can then why can't others? Why is the garment industry losing the market of 20 million people in Bangladesh? Owners can not only run after foreign exchange and stop the way of spending foreign exchange. The biggest thing is that more employment opportunities will be created for a large number of people.

Businessmen who must understand their business, people love quick money making. (More profit in less time and labor)

So common business people should not miss that opportunity. That is normal. So retailers may have focused on Chinese products for more profit there. 

 According to the data of Chinese customs, bilateral trade has increased to 28 billion dollars in the fiscal year 2022-23. BCCCI is the largest bilateral chamber of commerce in Bangladesh, registered with the Ministry of Commerce. More than 700 enterprises are members of this chamber, including more than 500 Chinese enterprises. BCCCI and its members have been working as official partners of various institutions including China Council for the Promotion of International Trade (CCPIT), BIDA, Bangladesh Export Processing Zone Authority, Bangladesh Economic Zone Authority for several years to attract more Chinese investment and increase trade.

Bangladesh is very important to China for geopolitical reasons. Especially Bangladesh is part of their Cold War with India. Therefore, along with the big development projects, China has become desperate to occupy the local market, Bangladesh does not have the ability to prevent China's market.  Because  not only bangladesh in the big countries of the world, used  small parts to everyday products at such a low price which provided by china.  this is reality.

Maybe it was not a very big or discussed news, on March 24th the news was published in all national mass media, the title was "Inauguration of 'Center for China Studies' in DU". I read the news with my  Curiosity. china  Ambassador Yao Wen said, I sincerely thank everyone involved in the establishment of the 'Center for China Studies' at Dhaka University. The center will play an important role in mutual cooperation between China and Bangladesh, especially in education, research, cultural, socio-economic development and strengthening of bilateral friendly relations between the two countries.

A Memorandum of Understanding was signed between Dhaka University and Shanghai Institute for International Studies to implement the aims, objectives and activities of the 'Center for China Studies'. Dhaka University Vice-Chancellor Professor Dr. ASM Maqsud Kamal and Shanghai Institute for International Studies President Prof. Dr. Chendongjia also signed the memorandum of understanding on behalf of his organization. Besides, several 'Letters of Intent' were signed on the occasion. Which will gradually work in other universities of the country and this China studies. 

After 53 long years of independence, suddenly China opened their study center in Bangladesh, they must have a dark idea behind pouring money there. The study center says that it will work for education, research, cultural, socio-economic development and strengthening bilateral friendly relations of both the countries. That means they will spend a large portion of money on education about Chinese language, culture, etc. It means they want a part of the young generation with them.  Is China a real friend of Bangladesh or just a businessman? China  understands nothing without there business. 

Has their attitude towards Uyghur Muslims changed? answer is no. They did not. 

As we say Boycott India Boycott Israel but not Boycott China. Because money is being made overnight by bringing goods from China at a low price and selling them at a high price. We don't trade with Israel, so it's easy to say boycott Israel. Therefore, we are not willing to miss that opportunity. In 1971, a part of the leftist progressive force of Bangladeshi people was united with China, against the independence of Bangladesh. They always working with China. 

So while opposing the Awami League, in the name of boycotting India, follow the rules of  "the enemy of my enemy might be enemy too"

Sri Lanka and Pakistan are good examples for us how china has served them by name of aid and business. now thay try to make a collaborate society  in Bangladesh for influence to the society. 

At least, the government and garment manufacturers' organizations need to pay attention to ensure that the ready-made garment market is not lost in Bangladesh. You should also prepare clothes for the country by setting up a separate unit or factory along with the big and famous companies abroad. Rather, you can use it as a kind of branding. And the government should take an initiative to stop the import and export of hard-made clothes. Because it is possible for Bangladesh to provide better products to the market at a lower price than the clothes that China offers. The women's clothing market is completely occupied by Pakistan and India, there is only the men's clothing market left, if it goes to China, what is left? 

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Writer: Editor Bricklane,  UK Correspondent of Daily Kalerkontha.