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Industry pushes for reforms to boost domestic apparel

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Kamruzzaman Bablu :

Despite boasting 250 spinning factories, 500 fabric factories, and 200 dyeing and finishing mills, Bangladesh’s apparel market still requires significant efforts to foster entrepreneurship, support emerging talent, and advocate for robust government policies to develop the domestic industry. Although the market is valued at an estimated $6-8 billion, the majority of demand is met through imports, according to industry insiders.

During major festivals like Eid and Pahela Baishakh, local clothing accounts for only Tk 4,000 crore of the Tk 25,000 crore spent on apparel, with the remainder being satisfied by imports. This underscores the urgent need to strengthen the domestic industry to reduce dependency on imports and bolster the national economy.

Bangladesh is recognised globally as a leading garment manufacturing hub, with its products sold in top retail outlets worldwide. However, the untapped potential of the domestic market offers an opportunity for further growth. Industry leaders have stressed the importance of organisations such as the FBCCI, BGMEA, BKMEA, and BGBA focusing on developing this sector. To expand the local market, there must be an emphasis on product diversification, particularly low-cost products, through initiatives like establishing sewing hubs in rural areas.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation:
“We are working to improve production quality to regain orders cancelled due to the unrest during the anti-discrimination student movement. However, we are now facing challenges such as labour unrest, inconsistent gas supply, and other issues following the fall of the ousted government.”
He added that empowering entrepreneurs, allowing duty-free imports with proper oversight, introducing a tax tag system, and boosting export-oriented factories are essential for strengthening the industry.

The BGMEA has highlighted the potential for creating a new wave of entrepreneurs by 2030, particularly focusing on supporting women entrepreneurs. By offering necessary facilities and incentives, these entrepreneurs could play a pivotal role in driving the local market forward.
To reduce reliance on imports, industry leaders have suggested making duty-free fabric available to both small and large factories for the domestic market. Additionally, utilising the trading bond facility for essential materials and fabrics could enhance market efficiency.

The introduction of a tax tag system for locally produced garments has also been proposed to ensure streamlined tax collection while benefiting entrepreneurs. Furthermore, a policy allowing factories to sell unsold stock in the local market by paying applicable taxes could alleviate financial strain caused by holding inventory for extended periods.

Currently, imported clothing from countries like India, Pakistan, Thailand, and China continues to dominate the local market. However, utilising Bangladesh’s established infrastructure and skilled workforce could help domestic producers capture a significant share of this multi-billion-dollar market, keeping revenue within the country.

Industry experts emphasise that the local apparel market holds immense potential. With comprehensive policy support, Bangladesh can address unemployment, nurture new businesses, and create globally competitive Bangladeshi brands that not only dominate the local market but also gain international recognition.

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