Challenges remain for Bangladesh’s US $ 100 billion garment export target by 2030

Bangladesh is facing many obstacles in its attempt to meet the ambitious goal of exporting $100 billion worth of clothing by 2030. Local business leaders and manufacturers are optimistic about the future despite the challenges, highlighting the necessity of improved security for industrial facilities, political stability, and government policy assistance.

Bangladesh, the second-largest apparel exporter in the world, exported ready-made clothing valued at over US $ 36 billion in the fiscal year 2023–2024. Domestic problems, such as a difficult business and investment environment, production and shipment delays, and shortages of gas and power required for industry, are thwarting this development, though.

The worldwide inflationary trend and declining clothing prices in important markets provide a backdrop for these difficulties. Furthermore, the World Trade Organisation (WTO) estimates that Bangladesh may lose US $ 7.77 billion in preferential access for its ready-made garment (RMG) products when it exits the least developed country category in 2026.

Enhancing the gas and electricity supply is essential, according to Faruque Hassan, the former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He pointed out that with the correct government assistance, reaching the goal is still possible as purchasers move back to Bangladesh. According to Hassan, a steady supply of energy, fresh investments, and product and market diversification—especially in high-value goods like sportswear and clothing made of synthetic fibers—are all essential for success.

Notable exports to non-traditional countries including South Korea, South Africa, Australia, Japan, India, and Russia, he noted, show promise.

Similar to Hassan, Kalpan Hossain, managing director of Dekko Legacy Group, pointed out that Bangladesh’s clothing products could find a market in Latin America. He emphasised that although it will be difficult to meet the goal, the nation has the capacity to take advantage of all available chances.

The managing director of Shasha Denims, Shams Mahmud, noted that clothing exports have grown steadily over the last ten years and that, with the correct assistance, growth might pick up speed over the next six years. Depending on the availability of necessary resources, Khandoker Rafiqul Islam, president of the now-dissolved BGMEA board of directors, also voiced confidence in achieving the US $100 billion goal.

On the other hand, the current business environment can make it more difficult to reach the goal in a timely manner, according to Mohammad Abdur Razzaque, head of the Research and Policy Integration for Development (RAPID). He suggested that although the goal could be challenging, better circumstances might make it possible to attain US $ 70 billion to US $ 80 billion. Razzaque pointed to a global decline in demand for apparel and cautioned that if the United States raises duties on Chinese goods after a possible Republican win in the next election, large orders may be further redirected to Bangladesh.