A year of investment for garments and textiles

The readymade garments and textile sector of Bangladesh will see a year of possibilities in 2023 despite some uncertainties such as the war and recession. There will be changes in the global supply chain. 

Buyers from western countries, especially from the USA, have started to shift their orders from China as part of reducing dependency on Beijing for geopolitical reasons.

This trend will continue in the upcoming year. In this case, Bangladesh can be a good alternative for western buyers. The western countries can also move out orders from Vietnam and Bangladesh will have a chance to grab them too.

Meanwhile, 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 in the USA have seen 54% growth at the beginning of the current year. Besides, China's moving towards high-tech industry and the latest coronavirus surge in that country can play big roles in diverting RMG orders to Bangladesh.

For these reasons, I think Bangladesh's apparel export growth in 2023 will not slow down compared to 2022. Rather, it may increase.

The next year will be the year of investment in the backward and forward linkage industry of the apparel sector for the years to come. We have to prepare for the future. That is why 2023 should be a busy year for entrepreneurs in this sector. We should look for future possibilities.

The DBL Group is also working in this regard and planning new investments in the sector.

In 2004, there was much speculation about export growth while the quota system on garments exports was lifted. But those who invested gained a good profit.

Many world-famous commodity traders are planning to open warehouses in Bangladesh. If one company opens a warehouse in this country, others will follow. As a result, Bangladesh is going to have good prospects in the coming years.

We have to be involved in long-term planning. Our buyers have confidence in Bangladeshi suppliers and new buyers are also coming. The DBL Group is also getting new buyers.

Outerwear, sportswear, lingerie and cotton-based high-end products have good export potential. We must be proactive to grasp these possibilities.

However, policy support from the government will also be required. Especially, the industry needs energy support, an investment-friendly environment, policy reform, upgraded logistics and corporate governance etc.

I visited South Korea last October and saw how a country can support its industries. They provide support to the industrial sector according to demand. They have separate cells to support the textile industry and they regularly communicate with businessmen and entrepreneurs.

The government in Bangladesh needs to reform the policy for economic zones. It is also important to modernise the customs and port activities in the country. We need trained manpower with technical knowledge. No one will invest here considering the labour costs as labour cost is nothing nowadays. We need to work closely to coordinate the industry, the policymakers and the academia in line with the demand of the industry.

The DBL Group has prioritised creating skilled manpower and we are doing so within our capacity.

TBS Senior Correspondent Reyad Hossain talked with MA Jabbar