The country's garment exports from July to November 2024 increased by 16.25 percent to $16.11 billion compared to the same period last year. According to industry insiders, garment exports will increase in the new year retaining the current growth.
The country's garment industry saw a critical period last year but as the market starts to recover, there is a new hope this year, said RMG website in a post on January 8.
Energy and dollar crises, supply chain disruptions, workers' demands for higher wages, political uncertainty, and lax law and order-all of these created an internal crisis for garment manufacturers in the past year.
Bangladesh's garment exports to major markets like the European Union and the United States have however rebounded over the past five months. Donald Trump will be sworn in as the US President of for the second time on January 20.
He has already announced new tariffs on Chinese, Mexican and Canadian goods which may create new business opportunities for Bangladesh.
Donald Trump has proposed a 60 percent tariff on goods from China, a 25 percent to 100 percent tariff on goods from Mexico, and a 10 20 percent tariff on all other goods. He has proposed 20 percent tariff on goods from Canada which has already choked political crisis forcing Prime Minister Justin Trudeau to resign.
Entrepreneurs believe the new US president is business-friendly. He will be able to end the Russia-Ukraine war. As a result, Europe and the US will be able to come out of high inflation. And as a result, Bangladesh's two main markets is expected to expand again. The country's export earnings will increase.
Industry insiders say to capitalize on this opportunity; Bangladesh must ensure reliable gas and electricity supplies. At the same time, it needs to address challenges in the banking sector, and improve law and order to curb labor unrest to enhance factory safety.
By achieving these goals, the country can expect a business-friendly environment and robust export growth by mid-2025. We also need to adopt some policies, such as easing the bond license facility, introducing non-discriminatory import taxes, and reforming the tax policy and customs laws.
At the same time, Bangladesh needs to find the scope of innovation, such as shifting from cotton items to non-cotton items; focusing on technical textiles; and moving towards chemical and machinery manufacturing industries.
