Bangladesh's global export share to increase by 1 percent

Industry experts believe that Bangladesh's share of wordwide textile and garment

 exports will increase from currently 2.8 percent to 3.8 percent by 2020. To date, Bangladesh is the larget exporter of ready-made garments (RMGs) after China.

According to the new HSBC Trade Forecast report, “the strong foothold Bangladesh has in the production of apparels will further strengthen growth in total merchandise exports over the coming decade".

In the first five months of this year, the export value of RMGs from Bangladesh increased by 13 percent compared to the same period last year. In 2013, it increased by 11.7 percent. Half of the garments produced for export went to Europe while one quarter went to the US, thus making the EU zone and the US the country's strongest garment importers. RMGs make up about 80 percent of all exports from Bangladesh.

"The US, Germany and the UK are Bangladesh’s top export partners and this will be unchanged till 2030, thanks to the strong demand from the West for textiles and garments,” states the report, adding that even fast-growing import partners like China, India, Korea and Indonesia will not change that.

In view of recent factory accidents and fires, many expected international buyers to reduce their orders. While this may be partly true, initiatives like improved fire and safety standards have restored some of the faith that was lost a couple of years ago, resulting in a continuation of the rapid growth that has been observed over the past ten years.

Improved trade within Asia and investments, particularly in infrastructure, will help push Bangladesh ahead. “But to improve longer-term growth prospects, Bangladesh will need to raise labour productivity and move into higher value-added textile sectors”, warns the report.