It is now known to everyone that the apparel industry is one of the key drivers of the economy of Bangladesh.
The contribution of this industry to the overall socioeconomic development of the country cannot be overstated.
Over the past 40 years, the industry has overcome various adversities to reach a sustainable level and the latest Covid-19 pandemic was another big hurdle for the apparel sector.
Like the entire world, we have passed through a very perilous situation in the past two years due to the Covid-19 pandemic.
However, with the strong leadership of Prime Minister Sheikh Hasina and with the combined effort and cooperation by all entrepreneurs and workers, this industry has been able to maintain balance between the lives and livelihood during the entire time of the pandemic.
During the pandemic period, this sector experienced a loss of worth $6 billion from the export earnings.
However, with the increase in demand for garments in the international market, the industry has started to turn around.
In the last fiscal year 2021-22, our apparel exports stood at $42.61 billion, fetching a growth of 35.47% than the earnings in fiscal year 2020-21, by achieving a significant growth from both the knit and woven sectors.
In FY22, the export earnings from the knitwear sector reached $23.21 billion, which was 36.88% higher than FY21, and during the mentioned period, the export earnings from the woven sector stood at $19.39 billion, 33.82% higher than the previous year.
In July-September of the current FY23, our total apparel exports have grown by 13.41% and our total exports in the first 3 months of this year stood at $10.27 billion.
In the mentioned period, our exports from the woven sector were $4.62 billion, whereas exports earnings from the knitwear sector were $5.64 billion, and export earnings registered a growth in both knit and woven sectors were 9.4% and 118.43% respectively.
Although there has been a steady growth in the garment industry from July-September of last fiscal year to the same period of the current fiscal year, the sector saw a negative growth of 7.52% in September to $3.16, which was $3.41 billion in September of last fiscal.
We are noticing that the purchase orders are decreasing since September.
As a result of the Russia-Ukraine war, inflation is rampant across the world, affecting demand and purchasing power for clothing in the international market.
Due to inflation and recession in our top export destinations like Europe and the United States, work orders for the coming season have seen a significant downturn.
Retailers are struggling to adapt to an increasingly inflationary global market.
Considering these, our export growth may be negative in the coming months too.
Moreover, the industry is facing several challenges at this time of recovery from the pandemic, especially due to shortage of raw materials, increase in fuel oil, gas and electricity prices, increase in container and ship fares, entrepreneurs are struggling to sustain the industry by facing increasing production costs and supply chain challenges.
However, we believe that with the support of the government, and other stakeholders, the industry will be able to avoid these disasters as before as the apparel industry of the country is a time-tested industry.
In this situation, we have to prioritize several things such as the models we have followed in the past to advance the industry.
It will be difficult to achieve the desired growth in the coming days by following those.
In the coming days we have to take special steps to increase our competitiveness, cost effectiveness by reducing lead time, and for that, there is no alternative to increase investment in backward linkages.
Moreover, product and market diversification, innovation, technology upgradation and skill development and branding should also be given attention.
Despite all the difficulties, the transformations of the industry in terms of social and environmental sustainability need to be underscored.
Through all the efforts, so far we have been able to keep the confidence of our buyers.
That is why Bangladesh is now considered one of the most sustainable sources of apparel products compared to most of its competitors even in this challenging situation when the entire world is facing a serious economic crisis. This resilience of Bangladesh is clearly reflected in the country's recent export trajectory.
The author is director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert Ltd
