Share of woven garments in Bangladesh' s apparel exports decline

The failure of Bangladesh’s backward-linkage industry to support the apparel subsector is causing the share of woven garments in its export earnings to wane.

Bangladesh’s woven apparel subsector faces strict rules-of-origin (RoO) requirements in its major destinations, including the European Union, after Bangladesh's LDC graduation. Manufacturers in the country will need to comply with double-transformation requirement irrespective of their access to GSP or GSP-plus schemes.

Most woven garments in Bangladesh are made from imported fabrics as local spinners can meet 35-40 per cent of demand of woven exporters, they say.

Demand for woven garments declined during the pandemic as most people stayed at home, says MD ShahidullahAzim, Vice President, , Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mahmud Hassan Khan, Former Vice President, BGMEA, adds, the main reason behind the decline of woven share is absence of strong backward-linkage industry here.

Bangladesh imported 552,859 tonne of woven fabrics in 2021, up from 490,430 tonne in 2017, according to BTMA reckonings.