RAPID chairman M A Razzaque said in the research paper that China is losing its share in the global market due to rising tension with the West, emerging geopolitical scenario, and long COVID restrictions in the former, and therefore, Bangladesh can further raise its share. China moving away from low value-added apparels to more sophisticated ones also works to Bangladesh’s advantage, he said.

Bangladesh is yet to tap the full potential of the European Union (EU) and the UK markets and can earn an additional $20 billion by exporting products to these regions, according to a research paper by the Research and Policy Integration for Development (RAPID). Of the $20 billion, apparel export potential worth $18 billion remains unutilised.

China’s share in the EU market in 2010 was nearly 44 per cent, which declined to around 31 per cent in 2021.

Data shows Bangladesh fetched nearly $28 billion from the EU and the UK markets in fiscal 2021-22, posting a 32 per cent export growth, of which around $26 billion came from readymade garment (RMG) exports.

The EU and the United Kingdom jointly account for 45 per cent of the global apparel market with more than $200 billion worth annual imports, Bangladeshi media reported citing the research paper.

Some challenges, including inefficiency in ports, complex customs procedures and lack of technological upgradation, should be addressed, the RAPID study pointed out.

The research paper also recommended attracting more foreign direct investment in backward linkage, investment in non-cotton fabric and diversification of RMG products to grab more shares of Chinese export.

By 2030, the apparel market size of the EU and the UK would be more than $260 billion, and Bangladesh’s export there could reach $65 billion.

Fibre2Fashion News Desk (DS)