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Textile Industry in Bangladesh

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18 views2 pages

Textile Industry in Bangladesh

Uploaded by

Ama Nesciri
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Industry

Textiles have been an extremely important part of Bangladesh's economy for a very long
time for a number of reasons. The textile industry accounts for 45% of all industrial
employment in the country and contributes 5% of the total national income. However,
although the industry is one of the largest in Bangladesh and is still expanding, it faces
massive challenges, principally because the country does not produce enough of the raw
materials necessary, unfavorable trade policies, and inadequate incentives for expansion.

Export Product
According to Bangladesh exports promotion Bureau, Bangladesh s textile exporters
exporting textile products, including bed sheets, bedspreads, pillow covers, cushion,
curtains, rugs, quilts, aprons, gloves, napkins and tablecloths.

Export Destination
Bangladeshs textile products are mainly exported to the EU countries, the UK, USA, Canada,
Mexico, Australia, Japan and Dubai.

Export Growth
2012-13
Amount
415

%
2.1

2011-12
Amount
%
459
2.4

2010-11
Amount
455

%
26

Global Market
Overall textile market is dominated by top six textile producing countries. The total export of
these countries is 77.44% of total production. China is completely dominated global textile
market. The rise of China as market leader in 2010 from then on it is clearly ahead of its
competitors. Among top six countries, India is single country from Asia and positioned itself
as third largest exporter. Therefore get clear competitive advantage from its other
competitor from Asia.
2012

2011

2010

2009

285668.2

294953.1

252220.5

211089.9

China

95450.2

94410.7

76871.5

59823.5

EU(27)

69366.2

76958.9

67881.0

62922.1

India

15273.2

15340.3

12833.4

9110.5

Germany

14438.4

16298.9

14154.5

12903.4

US

13485.3

13790.9

12169.5

9930.6

Italy
Total Production (top 6
countries)

13215.4

14725.8

12965.6

11803.7

221228.5

231525.5

196875.5

166493.7

78.49%

78.05%

78.87%

Total Production(Global )

% of Total Production
77.44%
Source: World Trade Organization

Local Production
In Bangladesh textile industry composed of Government as well as private initiative.
Government enterprise is controlled by Bangladesh Textile Mills Corporation (BTMC) but now
is not in good shape. Most of the company in textile sector is build by private initiative.
BTMC is formed in 1972 by government order. Now, BTMC has 18 mills which is consist of 22
units, among 18 mills only 4 units of 4 mills are in production. There is 416 spinning mills are
in production (In public sector 22 mills and in Private Sector 394 mills). Overall yarn
production capacity of all these mills is 2000 million Kgs. Currently, 777 weaving mills is in
production which production capacity is yearly 2100 million meter. There are 3000 unit of
knitting and knit-dying factories are in production among this 1400 factories are export
oriented.
Yarn production (million kg.)

Fabric production (million meter)

Financial
Year

Public
sector

Private
Sector

Total

Public
Sector

Private
sector

Total

2008-09
2009-10
2010-11
2011-12

2.33
1.14
2.40
0.93

376.74
1000.00
1105.00
1050.00

379.07
1001.14
1107.4
1050.93

6,380.00
7,200.00
7,300.00
7875.00

6,380.00
7,200.00
7,300.00
7875.00

Source: Bangladesh Economic Review, Ministry Of Finance.

Major Challenges to Overcome


Raw Material Import Dependence
Dependence for cotton on other countries is the basic disadvantage for the industry.
Importers face challenges due to fluctuations in the international cotton price. Cotton import
also raises the production cost of local yarn. The county is self sufficient in knit fabrics
production, however local manufactures are yet to meet the international standard of woven
fabrics.
High Cost of Local Financing
High financing cost is another major impediment faced by local manufactures. Inflation as
well as the interest rate is quite high in Bangladesh, which makes long term investment
costlier. Currently the corporate borrowing rate is around 16.0% to 17.0%.
Infrastructure
Bangladesh needs more investment infrastructural development in power and transport
sector. The country urgently needs a deep sea port to cut the lead time and to increase the
capacity of the port. This issue is vital since the country is expecting a massive growth in
export as China becomes costlier for apparel importers and importers will gradually shift to
low cost regions like Bangladesh.

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